Vanguard's ultra-low-cost S&P 500 ETF with just 0.03% expense ratio. The same 500 companies as SPY, but with lower fees for long-term investors.
VOO (Vanguard S&P 500 ETF) tracks the same S&P 500 index as SPY but with Vanguard's trademark low-cost approach. At just 0.03% expense ratio, it's one of the cheapest ways to invest in the US stock market.
Launched in 2010, VOO has become the second-largest S&P 500 ETF globally. For NZ investors focused on long-term wealth building, the lower fees can make a meaningful difference over decades.
On a $100,000 investment growing at 8% annually, VOO's lower fees would save you approximately $4,500 over 30 years compared to SPY. For larger portfolios, the savings are proportionally greater.
Near-zero trading fees and lowest FX rates. Used by larger portfolios.
Commission-free trades. Good for regular investors.
NZ-based platform with great support. USD $3 per trade.
VOO is subject to NZ's FIF tax rules. You'll pay tax on 5% of your opening balance annually (FDR method) or actual dividends if under the $50,000 threshold. Keep records for your IR3 tax return.
| Feature | VOO | SPY |
|---|---|---|
| Expense Ratio | 0.03% | 0.0945% |
| Index Tracked | S&P 500 | S&P 500 |
| Liquidity | High | Highest |
| Typical Use | Long-term investing | Active trading |
For long-term buy-and-hold investors, VOO's lower fees make it slightly better. For frequent traders who value liquidity, SPY may be preferable. The performance difference is minimal.
Yes, platforms like Stake and Sharesies offer fractional shares. A full VOO share costs approximately US$530-560 (January 2026).
Yes, VOO pays quarterly dividends with a yield of approximately 1.35%. Dividends are subject to 15% US withholding tax under the NZ-US tax treaty.
Compare platforms for buying Vanguard's low-cost S&P 500 ETF from New Zealand