SPY vs. VOO — ETF Comparison - Stock Analysis (2024)

FAQs

SPY vs. VOO — ETF Comparison - Stock Analysis? ›

Average Return

Correlation. The correlation between VOO and SPY is 1.00, which is considered to be high.

The Vanguard S&P 500 ETF (VOO) and the SPDR S&P 500 ETF Trust (SPY) are two of the most popular large cap exchange traded funds (ETFs) in the investment industry. Both are commonly found in professionally managed portfolios, including both traditional human-guided portfolios and those of robo-advisors.

Key Takeaways. Dividend ETFs invest in high-yielding dividend stocks to maintain a stable, steady income. The S&P 500 is a broad-based index of large U.S. stocks, providing growth and diversification. The best choice for you will depend on whether you prefer income or growth from your investments.

The Vanguard S&P 500 ETF (VOO 0.87%) is one of the best ways to invest in the S&P 500, which has been a pretty smart strategy over the long term. Since 1965, the S&P 500 has produced a total return of 10.2% annualized. The Vanguard ETF has an expense ratio of just 0.03%, so you get to keep most of your gains.

The Vanguard 500 Index Fund Admiral Class (VFIAX) and the SPDR S&P 500 ETF (SPY) are similar investment products. Both track the S&P 500, a U.S. stock index comprising 500 companies with the largest market capitalizations.

The Vanguard S&P 500 ETF (NYSEMKT: VOO) is a top choice for most index fund investors. Even Warren Buffett recommends it above any other investment. There's a good reason for that. Its low expense ratio and tight index tracking make it a top choice for anyone looking to match the returns of the S&P 500.

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What are the three best ETFs? ›

Average Return

In the past year, QQQ returned a total of 30.38%, which is higher than VOO's 27.99% return. Over the past 10 years, QQQ has had annualized average returns of 18.30% , compared to 12.63% for VOO. These numbers are adjusted for stock splits and include dividends.

Because of their wide array of holdings, ETFs provide the benefits of diversification, including lower risk and less volatility, which often makes a fund safer to own than an individual stock. An ETF's return depends on what it's invested in. An ETF's return is the weighted average of all its holdings.

Passive retail investors often choose index funds for their simplicity and low cost. Typically, the choice between ETFs and index mutual funds comes down to management fees, shareholder transaction costs, taxation, and other qualitative differences.

Experts agree that for most personal investors, a portfolio comprising 5 to 10 ETFs is perfect in terms of diversification.

The SPDR S&P 500 ETF is listed on the New York Stock Exchange and trades under the ticker symbol SPY. The SPY's price tracks the S&P 500 index. The SPDR S&P 500 ETF allows investors to track the performance of the US economy without having to buy all the stocks listed on the S&P 500 directly.

Correlation. The correlation between QQQ and VOO is 0.90, which is considered to be high.

Institutional Ownership and Shareholders

Largest shareholders include Vanguard Group Inc, Raymond James & Associates, Bank Of America Corp /de/, Jpmorgan Chase & Co, Morgan Stanley, Envestnet Asset Management Inc, Goldman Sachs Group Inc, Acorns Advisers, LLC, Wells Fargo & Company/mn, and LPL Financial LLC .