Top 5 S&P 500 ETFs | VOO vs SPY Comparison
Our top S&P 500 ETF picks tracking America's benchmark index. Compare expense ratios, returns, and features of VOO, SPY, SPLG, and other leading S&P 500 ETFs.
The S&P 500 is the benchmark index of America's 500 largest companies, delivering an average annual return of roughly 10% over the long term. S&P 500 ETFs are the most popular and straightforward way to invest in the entire U.S. stock market with a single fund. In this guide, we compare five leading S&P 500 ETFs to help you choose the right one.
Top 5 S&P 500 ETFs Rankings
Managed by Vanguard, the world's largest asset manager, VOO offers a low 0.03% expense ratio and reliable index tracking — making it an ideal core holding for long-term investors.
The world's first and largest ETF by assets, SPY offers unrivaled liquidity and trading volume. It is widely used for short-term trading and is one of the most active underlyings in the options market.
SPLG carries the lowest expense ratio among major S&P 500 ETFs at just 0.02%, making it the most cost-efficient option for small-amount, long-term dollar-cost averaging strategies.
RSP holds all 500 S&P 500 components at equal weight, avoiding the heavy concentration in large-cap tech stocks found in cap-weighted peers. Greater mid- and small-cap exposure can deliver differentiated returns.
ITOT goes beyond the S&P 500 to cover the entire U.S. equity market — approximately 3,500 stocks. By including mid- and small-cap companies, it offers broader diversification than a pure S&P 500 fund.
Table of Contents
1. Why S&P 500 ETFs Are So Popular
The S&P 500 index includes 500 of America's top companies — Apple, Microsoft, Amazon, and more. A single ETF gives you broad exposure to the entire U.S. economy, which is why even Warren Buffett has recommended S&P 500 index funds for ordinary investors.
2. VOO vs SPY vs SPLG: Key Differences
VOO (Vanguard), SPY (SPDR), and SPLG (SPDR Portfolio) all track the S&P 500, but differ in expense ratios and structure. For long-term investing, the lowest-cost options — SPLG at 0.02% or VOO at 0.03% — are most advantageous. For short-term trading, SPY's unmatched liquidity makes it the better choice.
3. What Makes RSP Different: Equal-Weight Exposure
RSP holds all S&P 500 constituents at equal weight rather than by market capitalization. While cap-weighted funds like VOO and SPY are heavily concentrated in mega-cap tech stocks, RSP gives more exposure to mid- and small-cap names, reducing concentration risk in any single sector.
Key Investment Tips
- 1.S&P 500 ETFs are the most commonly recommended starting point for first-time ETF investors.
- 2.For long-term investing (10+ years), consider SPLG at 0.02% — the lowest expense ratio in its class.
- 3.Pairing S&P 500 ETFs with a dollar-cost averaging (DCA) strategy helps reduce market-timing risk.
- 4.A single S&P 500 ETF already provides broad diversification across 500 of the largest U.S. companies.
FAQ