VOO vs. SPY: Which Popular S&P 500 ETF Is the Better Buy?

The Vanguard S&P 500 ETF (VOO) offers a clearer advantage over the State Street SPDR S&P 500 ETF Trust (SPY) for long-term investors due to its significantly lower expense ratio of 0.03% versus SPY's 0.09%, combined with structural advantages in dividend reinvestment and securities lending. While both funds track the S&P 500 and deliver nearly identical performance, VOO's cost advantage compounds meaningfully over decades, making it the better choice for multi-decade investment horizons.