Forget VOO, This Fund Holds the Exact Same 500 Stocks for a 33% Lower Fee

The Vanguard S&P 500 ETF (NYSEARCA:VOO) is the default S&P 500 vehicle for millions of investors, and for good reason. It tracks the index at a 0.03% expense ratio, holds $978.40B in assets, and trades with razor-thin spreads. For most holders it is the cheapest, most liquid way to own the entire U.S. large-cap market with one ticker. That held until a competing fund undercut VOO on fees for the same basket: the SPDR Portfolio S&P 500 ETF (NYSEARCA:SPLG), which holds the identical 500 stocks at a lower expense ratio and a fraction of the share price.

The Case for VOO

VOO has tracked the S&P 500 exceptionally well since its September 7, 2010 inception. Over the last year it is up 23.81%, with a five-year total return of 87.01%, a ten-year return of 316%, and a 1.05% trailing dividend yield. Nothing in that record argues against owning the S&P 500. The only question is whether VOO is still the lowest-friction wrapper for it.

The Alternative: SPLG

SPLG tracks the same index, holds the same 500 constituents in the same weights, and charges 0.02% as of March 19, 2026, against VOO’s 0.03% as of March 25, 2026. Performance tracks closely, as it should: SPLG returned 22.11% over the trailing year to June 11, with a five-year return of 83.71% and a ten-year return of 310.99%. The small gaps reflect quote timing and dividend reinvestment, not a real tracking difference. SPLG’s bigger edge is share price. It closed at $85.40 versus VOO’s $678.24, so an investor making fixed-dollar contributions lands closer to fully invested on each purchase when fractional shares are unavailable.

The Fee Math, Honestly

The one-basis-point gap is about $10 a year on a $100,000 position, roughly $100 over a decade before compounding, and into the low hundreds of dollars over twenty years. That is real money, but it is not life-changing money. The case for switching is less about dollars than the absence of any reason to pay more for the same basket. If two funds hold the same 500 stocks and one charges a third less, the cheaper one is the cleaner default for new money.

The Tradeoffs

SPLG’s spreads run slightly wider, reflecting lower volume against VOO’s massive trading base. For buy-and-hold investors that cost is negligible, but for frequent traders it can eat into the savings, and VOO’s $978.40B in assets is a genuine advantage. VOO also benefits from Vanguard’s share-class structure, which has historically improved tax efficiency. That structure was patent-protected until May 2023, but competitors have since filed to copy it and the SEC may not extend it to new entrants, so it is a less durable edge than it once was.

Making the Switch

In a tax-advantaged account such as an IRA, 401(k) window, or HSA, swapping carries no tax consequence. In a taxable account, selling VOO at a gain triggers capital gains tax that the fee savings will not offset for years, so the practical move is to route new contributions to SPLG and leave the existing position alone.

For an investor who simply wants the cheapest S&P 500 exposure on new money, SPLG is the more straightforward choice today. For one sitting on a large taxable VOO gain, holding remains rational. And active traders, think VOO’s liquidity is worth the extra basis point. Both funds do the job well, and the difference comes down to which friction matters most.