Cost Conscious? Vanguard S&P 500 ETF Tops SPDR Rival

1 hour ago 1

Erin Kennedy, The Motley Fool

Thu, June 25, 2026 astatine 7:05 AM CDT 4 min read

The superior favoritism betwixt Vanguard S&P 500 ETF (NYSEMKT:VOO) and State Street SPDR S&P 500 ETF (NYSEMKT:SPY) centers connected outgo and plus scale, arsenic some supply astir identical vulnerability to large-cap U.S. equities.

These 2 heavyweights correspond the astir fashionable vehicles for owning the S&P 500 Index. While SPY is simply a humanities pioneer favored by organization traders for its heavy liquidity, VOO has go a cornerstone for semipermanent idiosyncratic investors seeking to minimize absorption costs portion capturing wide marketplace growth.

Snapshot (cost & size)

Beta measures terms volatility comparative to the S&P 500; beta is calculated from five-year monthly returns. The 1-yr instrumentality represents full instrumentality implicit the trailing 12 months. Dividend output is the trailing-12-month organisation yield.

The Vanguard money is the much affordable prime with an disbursal ratio of 0.03%, which is one-third the outgo of the SPDR ETF. Opinions whitethorn alteration connected however meaningful that outgo differential is.

Performance & hazard examination

What's wrong

The Vanguard ETF holds 505 stocks and seeks to replicate the returns of the S&P 500 Index. Its largest positions see Nvidia (NASDAQ:NVDA) astatine 7.9%, Apple (NASDAQ:AAPL) astatine 7.05%, and Microsoft (NASDAQ:MSFT) astatine 5.15%. This fund, launched successful 2010, concentrates its assets successful exertion (39%), fiscal services (11%), and connection services (10%). It has paid $7.13 per stock successful dividends implicit the trailing 12 months and maintained a 52-week trading scope betwixt $545.75 and $699.15.

The SPDR money manages a portfolio of 504 holdings. Top holdings see Nvidia astatine 7.8%, Apple astatine 6.82%, and Microsoft astatine 4.41%. Launched successful 1993, the ETF has a akin assemblage organisation crossed exertion (39%), fiscal services (11%), and connection services (11%). It has a trailing-12-month dividend payout of $9.29 per stock and a 52-week trading scope betwixt $591.89 and $760.40.

For much guidance connected ETF investing, cheque retired the afloat usher astatine this link.

What this means for investors

With apologies to the Bard:
"Two money giants, some alike successful dignity,
On just Wall Street, wherever we laic our scene."

Given these 2 ETFs some way the S&P 500, there's nary existent quality successful show oregon dividend yield. The 3 superior distinctions betwixt SPY and VOO are cost, AUM, and mean trading volume.

Read Entire Article