US EquitiesUpdated 2026-02-24

S&P 500 ETF Recommendations | VOO vs SPY vs IVV vs SPLG Comparison 2026

Compare the top S&P 500 ETFs — VOO, SPY, IVV, and SPLG. Analyze expense ratios, trading volume, fund size, and management to find the best S&P 500 ETF for your long-term investment portfolio.

The S&P 500 is the world's most-followed benchmark, comprising 500 of America's largest companies. Famously endorsed by Warren Buffett as "the best investment for most people," S&P 500 ETFs provide the most efficient way to gain diversified exposure to the entire U.S. economy. While VOO, SPY, IVV, and SPLG all track the same index, they differ in expense ratios, trading volume, and fund structure. This guide compares them to help you choose the optimal ETF for long-term investing.

Top 4 S&P 500 ETFs Rankings

VOOVanguard S&P 500 ETFBest for Long-term, Ultra-low Cost

Vanguard's flagship S&P 500 ETF offers an ultra-low 0.03% expense ratio and exceptional operational stability. With over $500 billion in net assets, it is one of the world's largest ETFs. Vanguard's investor-first philosophy makes VOO the most popular choice among long-term S&P 500 investors.

Expense 0.03%Div 1.3%

SPYSPDR S&P 500 ETF TrustHighest Volume, World's First ETF

Launched in 1993, SPY is the world's first and most-traded ETF with unmatched daily trading volume of tens of millions of shares. Its deep options market and tight spreads make it the go-to choice for active traders and institutional investors. The 0.09% expense ratio is higher than competitors, but the liquidity premium is worth it for large trades.

Expense 0.09%Div 1.2%

IVViShares Core S&P 500 ETFBlackRock Managed, On Par with VOO

BlackRock's iShares Core S&P 500 ETF matches VOO's ultra-low 0.03% expense ratio with equally impressive net assets and trading volume. Backed by BlackRock's global investment infrastructure, IVV delivers virtually identical performance to VOO, making it a convenient choice for investors already holding iShares products.

Expense 0.03%Div 1.3%

SPLGSPDR Portfolio S&P 500 ETFLowest Fee 0.02%, Low Share Price

State Street's low-cost S&P 500 ETF offers the industry's lowest expense ratio at just 0.02%. With a share price in the $60–70 range — far lower than VOO ($500+) or SPY ($500+) — SPLG is highly accessible for smaller investors. It delivers the best cost-efficiency for long-term dollar-cost averaging strategies.

Expense 0.02%Div 1.3%

Table of Contents

1. Key Factors for Choosing an S&P 500 ETF
2. S&P 500 ETF Strategy for Long-term Investors
3. Building a Portfolio Around S&P 500 ETFs

1. Key Factors for Choosing an S&P 500 ETF

Since all S&P 500 ETFs track the same index, return differences are negligible. The real differentiators are expense ratio, trading volume (liquidity), share price (accessibility), and dividend handling. VOO and IVV offer ultra-low 0.03% expense ratios ideal for long-term holding, while SPLG leads the pack at just 0.02%. SPY charges a relatively higher 0.09% but commands the world's highest trading volume — making it the preferred choice for short-term trading and options strategies.

2. S&P 500 ETF Strategy for Long-term Investors

For investment horizons of 10+ years, expense ratios matter most. Even a 0.01% difference compounds significantly over time. For example, on a $100,000 investment, the annual fee difference between SPY (0.09%) and SPLG (0.02%) is about $70 — which grows to thousands of dollars over 20 years with compounding. Long-term investors should choose from VOO, IVV, or SPLG. If your investment amount is small, SPLG's lower share price (~$60–70) offers better accessibility than VOO or SPY (both $500+).

3. Building a Portfolio Around S&P 500 ETFs

S&P 500 ETFs serve as the core holding in most investment portfolios. A typical allocation places 40–70% in an S&P 500 ETF, with the remainder diversified across international equities (VXUS), bonds (BND, AGG), and small-cap ETFs. If you want concentrated U.S. exposure, a single S&P 500 ETF provides instant diversification across 500 blue-chip companies spanning every major sector of the American economy.

Key Investment Tips

1.For long-term investing (10+ years), choose SPLG (0.02%) or VOO (0.03%) for the lowest ongoing costs.
2.SPY has the highest expense ratio among peers but offers unmatched liquidity for large trades and options.
3.Use an S&P 500 ETF as your portfolio core — a 40–70% allocation is a common starting point.
4.Dollar-cost averaging with monthly fixed investments effectively reduces market timing risk.

FAQ

Which S&P 500 ETF is the best among VOO, SPY, IVV, and SPLG?

All four track the same S&P 500 index, so returns are nearly identical. For long-term investors, SPLG (0.02%) or VOO (0.03%) offer the lowest costs. For active trading or options, SPY provides unmatched liquidity. If you already hold iShares products, IVV is a convenient fit for portfolio management.

What is the average return of S&P 500 ETFs?

The S&P 500 index has historically delivered approximately 10–11% average annual returns (including dividend reinvestment). However, this is a long-term (20+ year) average — short-term drawdowns exceeding -30% have occurred (2008 financial crisis, 2020 COVID crash). After adjusting for inflation, real returns are about 7–8%. While past performance doesn't guarantee future results, S&P 500 investing remains the most proven way to bet on long-term U.S. economic growth.

How much should I invest monthly in S&P 500 ETFs?

The ideal amount depends on your income and expenses, but a common guideline is 10–20% of monthly income. Even small amounts invested consistently through dollar-cost averaging can reduce market timing risk and maximize the power of compounding. If the share price feels too high, start with SPLG ($60–70 range) or use a brokerage that supports fractional share purchases.

Should I invest in S&P 500 ETFs or Nasdaq 100 ETFs (QQQ)?

S&P 500 ETFs offer broader diversification across 500 large-cap stocks with higher stability, while Nasdaq 100 ETFs (QQQ) are tech-heavy with higher growth potential but greater volatility. For steady long-term investing, use an S&P 500 ETF as your core holding. To add tech growth exposure, consider a 60–70% S&P 500 ETF + 30–40% QQQ split. Note that holding both increases your tech sector concentration.