VOO vs. SPLG: Same S&P 500, So Why Pay More Than You Have To?
If you want plain vanilla S&P 500 exposure, two funds dominate the shortlist: SPDR Portfolio S&P 500 ETF (NYSEARCA:SPLG) and Vanguard S&P 500 ETF (NYSEARCA:VOO). They hold the same 500 companies in the same weights, so on paper the choice…
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If you want plain vanilla S&P 500 exposure, two funds dominate the shortlist: SPDR Portfolio S&P 500 ETF (NYSEARCA:SPLG) and Vanguard S&P 500 ETF (NYSEARCA:VOO). They hold the same 500 companies in the same weights, so on paper the choice looks like a coin flip. In practice, price, liquidity, and share-size friction separate them. One trades near $87.77 a share with the lowest headline fee in the category. The other trades near $683, commands the deepest liquidity in the category, and charges a hair more. The right pick depends less on the index and more on how you actually use the fund.
What each fund is really selling
Both ETFs make the same implicit bet: that the market-cap-weighted S&P 500 will keep compounding, and that shaving costs to the bone is the only edge an index fund can offer. SPLG’s edge is price. State Street’s fact sheet lists an expense ratio of 0.02%, the cheapest S&P 500 wrapper on the market. VOO’s fact sheet lists 0.03%, one basis point higher. On a $10,000 position, that gap costs a VOO holder roughly $1 a year. Not a reason to switch. Not a reason to ignore, either.
VOO’s edge is plumbing. It is one of the largest ETFs in the world, with tighter bid-ask spreads, deeper options chains, and the kind of institutional flow that makes large orders fill cleanly. SPLG, while growing fast, is a fraction of that size. In a VIX-16.45 environment, that gap barely matters. During the March 2026 volatility spike, when VIX ran to 31.05, it did.
Where the returns actually land
Because both funds track the same index, performance should be nearly identical, and it is. Over the trailing year, SPLG returned 22.18% versus VOO’s 22.16%. Over five years, SPLG delivered 84.58% against VOO’s 84.49%. The ten-year gap is a bit wider: SPLG at 321.27% versus VOO at 319.62%. Rounding, timing of distributions, and the small fee gap explain most of that. Neither fund is losing to the index in any way a long-term investor should worry about.
The share-price problem nobody talks about
VOO’s $682.94 price is a real friction if you invest $100 or $250 at a time on a broker that does not offer fractional shares. SPLG’s $87.77 price lets almost any dollar amount deploy cleanly. That is why 401(k) menus and automated contribution plans increasingly favor SPLG. The dividend math scales the same way. SPLG paid $0.23923 per share in Q2 2026; VOO paid $1.9622. On a dollar-for-dollar basis, the yields are effectively identical.
Side by side
| Metric | SPLG | VOO |
|---|---|---|
| Expense ratio | 0.02% | 0.03% |
| Price per share | $87.77 | $682.94 |
| 1-year return | 22.18% | 22.16% |
| 5-year return | 84.58% | 84.49% |
| Latest quarterly dividend | $0.23923 | $1.9622 |
| Options market depth | Limited | Deep |
The verdict
For a buy-and-hold retail investor making regular contributions of any size, SPLG is the cleaner choice. Lower expense ratio, lower share price, same index, same returns within rounding. For active traders, options users, and anyone moving large blocks, VOO’s liquidity is worth the extra basis point. The calculus flips only if you need tight execution on size or an options overlay. Otherwise, paying more for the same 500 stocks is a habit worth breaking.
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After 15 years on Wall Street with 7 of them as Director of Corporate and Municipal Bond Trading for a NYSE member firm, I started my own project and corporate finance consultancy. Much of the work involves writing business plans, presentations, white papers and marketing materials for companies seeking budgetary allocations for spinoffs and new initiatives or for raising capital for expansion or startup companies and entrepreneurs. On financial topics, I have been published under my own byline at The Motley Fool, 247wallst.com, DealFlow Events’ Healthcare Services Investment Newsletter and The Microcap Newsletter, among others. Additionally, I have done freelance ghostwriting writing and editing for several financial websites, such as Seeking Alpha and Shmoop Financial. I have also written and been published on a variety of other topics from music, audiophile sound and film to musical instrument history, martial arts, and current events. Publications include Copper Magazine, Fidelity (Germany), Blasting News, Inside Kung-Fu, and other periodicals.
