What is the difference between SPY and VOO in 2026?

SPY (SPDR S&P 500 ETF Trust) and VOO (Vanguard S&P 500 ETF) both track the S&P 500 index. The main difference is the expense ratio: VOO charges 0.03% vs SPY 0.0945%. SPY is more liquid (largest US ETF by AUM , tightest bid/ask spread); VOO is cheaper to hold long-term.

Which is better for long-term investors, SPY or VOO?

For buy-and-hold investors, VOO is generally better because its 0.03% expense ratio compounds favourably over decades vs SPY's 0.0945%. SPY's liquidity advantage matters mostly to active traders and institutions. For NZ investors, both trigger FIF tax once holdings exceed NZ$50,000.

Can NZ investors buy SPY and VOO?

Yes. Hatch, Stake, Sharesies, Tiger Brokers, Interactive Brokers, Jarden Direct, and ASB Securities all give NZ investors access to NYSE-listed ETFs. Holdings over NZ$50,000 cost-basis trigger Foreign Investment Fund (FIF) tax — the NZX-listed Smartshares USF or Kernel S&P 500 are PIE -taxed alternatives.

Do SPY and VOO have the same holdings?

Yes — both track the S&P 500, so they hold the same 500 large-cap US companies in the same market-cap-weighted proportions. Tracking differences are negligible (a few basis points per year).

Which has the higher dividend yield, SPY or VOO?

They yield within a few basis points of each other since they hold the same stocks. As of 2026 review, both are around 1.3–1.4% trailing 12-month yield, distributed quarterly.

Updated 2026-05-02 Reviewed quarterly

SPY vs VOO: Which S&P 500 ETF?

SPY

TER 0.09% · Yield 1.3% · Quarterly

VOO

TER 0.03% · Yield 1.4% · Quarterly

Both track the same 500 US companies, but one costs 3x more. Here's what NZ investors need to know.

Key Difference

VOO has a lower expense ratio (0.03% vs 0.09%) while SPY has higher liquidity and tighter spreads. Both track the same S&P 500 index. The fee difference can compound over long time periods.

Head-to-Head Comparison

Feature	SPY	VOO	Winner
Expense Ratio	0.09%	0.03%	VOO
Index Tracked	S&P 500	S&P 500	Tie
Holdings	~500	~500	Tie
Dividend Yield	~1.4%	~1.4%	Tie
AUM	$550B+	$450B+	SPY
Daily Volume	80M+ shares	5M+ shares	SPY
Bid-ask spread	Tighter (highest-volume US ETF)	Wider than SPY but still narrow	SPY
Provider	State Street	Vanguard	-
Structure	Unit Trust	ETF	VOO

Annual fee cost — worked example

The TER gap looks small but is real money each year. Worked example assumes a fixed NZ$50,000 principal — illustrative only.

NZ$50,000 invested — gross annual fund-management fee

SPY (0.09% TER)

NZ$47.25/year

VOO (0.03% TER)

NZ$15.00/year

VOO's TER (0.03%) is lower than SPY's (0.09%). The annual fee difference on NZ$50,000 is approximately NZ$32.25/year. Compounded effects depend on assumed return rate + horizon, which we do not project forward.

Key Differences

SPY Characteristics

Highest liquidity and tightest spreads
Most liquid options market of any ETF
Higher expense ratio (0.09%)

VOO Characteristics

Lower expense ratio (0.03%)
ETF structure (vs SPY's unit trust)
Vanguard's investor-owned structure

These are general product characteristics, not recommendations. Consult a licensed financial adviser to assess suitability for your circumstances.

For NZ Investors Specifically

Both available on NZ platforms

Hatch, Stake, Sharesies, and Interactive Brokers all offer both SPY and VOO. No difference in accessibility.

Same tax treatment

Both are US-domiciled ETFs subject to the same FIF rules and 15% US withholding tax (with W-8BEN form).

Currency considerations

Both are priced in USD. Your returns will be affected by NZD/USD exchange rate movements regardless of which you choose.

Summary

Both ETFs track the same index. VOO has lower fees (0.03% vs 0.09%) while SPY has higher liquidity. Your choice may depend on trading frequency, order size, and platform availability.

Learn More About VOO How to buy from NZ → NZ-listed (PIE-tax) alternatives →

SPY vs VOO: Which S&P 500 ETF?

Key Difference

Head-to-Head Comparison

Annual fee cost — worked example

NZ$50,000 invested — gross annual fund-management fee

Key Differences

SPY Characteristics

VOO Characteristics

For NZ Investors Specifically

Both available on NZ platforms

Same tax treatment

Currency considerations

Summary

Related to SPY vs VOO

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VOO ETF detail

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How to buy US ETFs from NZ

NZ-listed ETFs (no FIF)