Is VOO or SPY a better investment? (2024)

Is VOO or SPY a better investment?

VOO earns a top rating of Gold, while SPY earns the next best rating of Silver. Almahasneh says the reason is fees. VOO charges 0.03%, while SPY charges 0.09%. With all else equal, the fund with the lower fee is more aligned with investors' best interests.

Is it better to invest in SPY or VOO?

Both are very low cost compared to the average ETF in the US market. Both are great options, well diversified, are run by amazing teams. However, fees do matter, and you get what you don't pay for in the financial industry. So, that is the reason why we give VOO a Gold rating, while SPY a Silver rating.

Is it wise to invest in VOO?

Vanguard S&P 500 ETF holds a Zacks ETF Rank of 2 (Buy), which is based on expected asset class return, expense ratio, and momentum, among other factors. Because of this, VOO is a great option for investors seeking exposure to the Style Box - Large Cap Blend segment of the market.

Which is the best ETF to invest now?

What is the best ETF that tracks the S&P 500?

SPY, VOO and IVV are among the most popular S&P 500 ETFs. These three S&P 500 ETFs are quite similar, but may sometimes diverge in terms of costs or daily returns.

Why pick SPY over VOO?

VOO earns a top rating of Gold, while SPY earns the next best rating of Silver. Almahasneh says the reason is fees. VOO charges 0.03%, while SPY charges 0.09%. With all else equal, the fund with the lower fee is more aligned with investors' best interests.

Why is SPY more popular than VOO?

VOO is managed by Vanguard, a company renowned for its investor-friendly policies and emphasis on low-cost index investing. Due to its popularity among traders, SPY enjoys higher liquidity. This is evident in its narrower bid-ask spreads, which makes it a favourite among day traders and institutional investors.

Is S&P 500 better than VOO?

Both VOO and SPY are index funds based on the S&P 500. Stock holdings and sector allocations are nearly identical. Performance is also nearly identical, but the VOO has slightly outperformed the SPY over the long term. Both funds are easily available at popular investment brokers and through robo-advisors.

Should I own both VOO and VTI?

Or, you could also invest in both, for example, by putting half in VOO and half in VTI. Here's a summary of which one to choose: If you want to own only the biggest and safest stocks, choose VOO. If you want more diversification and exposure to mid-caps and small-caps, choose VTI.

What is the fee for VOO vs SPY?

Before we break down what they're invested in, let me take a moment to point out the expense ratios of these funds. VOO and VTI charge 0.03% annually, while SPY charges a slightly higher 0.09%. This means that for every $10,000 you invest in VOO, for example, you would pay just $3 a year in fees.

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Which ETF gives the highest return?

Does VOO pay dividends quarterly?

VOO has a dividend yield of 1.41% and paid $6.41 per share in the past year. The dividend is paid every three months and the last ex-dividend date was Mar 22, 2024.

Should I buy Vanguard S&P 500 ETF?

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.

Does VOO track the S&P 500?

Seeks to track the performance of the S&P 500 Index. Large-cap equity. Employs a passively managed, full-replication strategy.

Is it smart to invest in SPY?

When investors anticipate a market downturn, SPY can act as a hedge to potentially safeguard portfolios against downside risks. Because SPY is highly liquid, you can use it to manage portfolio liquidity — as a source of cash for redemption requests, a liquidity sleeve, and more.

Is SPY still a good investment?

SPY holds several negative signals and this should be a sell candidate, but due to the general chance for a turnaround situation it should be considered as a hold candidate (hold or accumulate) in this position whilst awaiting further development.

Does VOO or SPY pay dividends?

SPY - Dividend Comparison. VOO's dividend yield for the trailing twelve months is around 1.41%, more than SPY's 1.36% yield.

How many different ETFs should I own?

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

Should I invest in SPY 500?

Investing in an S&P 500 fund can instantly diversify your portfolio and is generally considered less risky. S&P 500 index funds or ETFs will track the performance of the S&P 500, which means when the S&P 500 does well, your investment will, too. (The opposite is also true, of course.)

Why is SPY better than QQQ?

The table demonstrates that the difference between SPY and QQQ is that the S&P 500 Index and SPY ETF provide much better options for diversification across economic sectors. Despite this, the tech sector accounts for over a third of assets in this fund and is actually 3 times more than the second largest sector.

Does Warren Buffett recommend the S&P 500?

“In my view, for most people, the best thing to do is own the S&P 500 index fund,” Buffett said at Berkshire's 2020 annual meeting. Buffett's thinking here is straightforward. Most non-professional investors (and even many professional stock-pickers) have very little chance of outperforming the market.

Which ETF is better, VOO or SPY?

VOO - Volatility Comparison. The current volatility for SPDR S&P 500 ETF (SPY) is 2.72%, while Vanguard S&P 500 ETF (VOO) has a volatility of 2.87%. This indicates that SPY experiences smaller price fluctuations and is considered to be less risky than VOO based on this measure.

What S&P 500 should I invest in?