For long-term investors looking to track the U.S. stock market, S&P 500 ETFs are a popular choice. Two of the most widely held options are the Vanguard S&P 500 ETF (VOO) from Vanguard and the SPDR S&P 500 ETF Trust (SPY) from State Street. Using the TipRanks’ ETF Comparison Tool, we have placed VOO and SPY against each other to find the best ETF for investors in 2026.
The main difference between VOO and SPY comes down to cost and trading style. VOO has a super-low expense ratio of 0.03%, compared with SPY’s 0.09%, making it about three times cheaper to hold over the long term. For investors planning to buy for the long term, that fee difference can add up significantly, giving VOO a clear advantage for long-term growth.
SPY, however, shines in liquidity. It’s the world’s most actively traded ETF, with huge daily volume, which makes it ideal for traders, institutions, and options investors who need to move in and out quickly. By contrast, VOO trades far less, averaging around 6.69 million shares a day, while SPY sees roughly 70 million shares exchanged daily.
Both VOO and SPY track the S&P 500 Index (SPX), a widely used benchmark that reflects the overall U.S. stock market and the health of the broader economy.
In terms of holdings, both ETFs are heavily weighted toward the technology sector, with their top five positions being Nvidia (NVDA), Apple (AAPL), Microsoft (MSFT), Amazon (AMZN), and Alphabet (GOOGL). Overall, VOO includes 507 stocks with total assets of around $860.18 billion, while SPY holds 504 stocks totaling roughly $653.13 billion in assets.
According to TipRanks’ ETF analyst consensus, which aggregates analyst ratings on each ETF’s holdings, both VOO and SPY carry Moderate Buy ratings. VOO’s average price target of $762.95 implies a potential upside of 26%, while SPY’s target of $828.04 suggests an upside of 25.61%.
For investors focused on holding their positions over the long term, VOO stands out because of its lower fees. Since it provides almost the same S&P 500 exposure as SPY, the smaller expense ratio can add up to noticeably higher returns over time. Meanwhile, SPY remains valuable for frequent traders and institutional investors who rely on its exceptional liquidity to buy and sell quickly.
