VOO vs. SPY: Is There Actually a Difference?

While the Vanguard S&P 500 ETF (VOO) and State Street SPDR S&P 500 ETF (SPY) track the same index, they differ in key ways. VOO has a lower expense ratio of 0.03% versus SPY's 0.0945%, making it more cost-effective for retail investors. SPY offers superior liquidity and trading volume, preferred by large institutions. For buy-and-hold retail investors, VOO is generally the better choice due to its cost advantage.