Updated Reviewed quarterly
VOO ETF: Vanguard S&P 500
TER0.03%·Yield (TTM)1.4%·DistributionQuarterly·NZ taxFIF (US-domiciled, > NZ$50K cost-basis)
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 Key Stats (2026)
What is VOO ETF?
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 has one of the lowest published TERs of any S&P 500 ETF.
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.
Why Choose VOO Over SPY?
- Lower fees: 0.03% vs SPY's 0.0945% - saves ~$65/year per $100k invested
- Same exposure: Identical S&P 500 holdings and performance
- Vanguard reputation: Trusted provider focused on investor interests
- Slightly higher yield: Lower fees mean more dividends pass through
Fee Comparison Over 30 Years
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.
How to Buy VOO ETF in New Zealand (2026)
Platforms Offering VOO
Interactive Brokers
Near-zero trading fees and lowest FX rates. Used by larger portfolios.
Stake
Commission-free trades. Good for regular investors.
Hatch
NZ-based platform with great support. USD $3 per trade.
Tax Reminder
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 NZ$50,000 (source) threshold. Keep records for your IR3 tax return.
VOO vs SPY: Quick Comparison
| 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 |
VOO ETF FAQs
Is VOO better than SPY for NZ investors?
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.
Can I buy fractional shares of VOO in NZ?
Yes, platforms like Stake and Sharesies offer fractional shares. A full VOO share costs approximately US$530-560 (January 2026).
Does VOO pay dividends?
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.
Explore VOO Platforms
Compare platforms for buying Vanguard's low-cost S&P 500 ETF from New Zealand
Related to VOO
SPY — most-liquid S&P 500 alternative
Same index, 3× the fee but tighter spreads.
SPY vs VOO comparison
Side-by-side fees + liquidity.
VTI — total US market
S&P 500 + small/mid caps, 0.03% TER.
VTI vs VOO comparison
Total market vs large-cap-only.
Best S&P 500 ETFs for NZ
SPY · VOO · IVV · NZX-listed USF compared.
NZ-listed ETFs (PIE-tax alternative)
Smartshares USF tracks the S&P 500 PIE-taxed.
FAQ
Common questions about VOO
What is the VOO ETF?⌄
VOO is the Vanguard S&P 500 ETF — a low-cost tracker of the S&P 500 index. At 0.03% TER and ~US$450B AUM, it is among the lower-cost S&P 500 ETFs available. Vanguard is investor-owned, which historically aligns issuer incentives with low ongoing costs.
VOO vs IVV vs SPY — what is the practical difference?⌄
All three track the S&P 500. VOO and IVV (iShares) charge 0.03% TER; SPY charges 0.0945%. SPY has the deepest liquidity and tightest spreads — meaningful for traders, less so for long-term holders. VOO is investor-owned; IVV is BlackRock-owned. For most NZ buy-and-hold investors, VOO and IVV have lower ongoing cost.
How can NZ residents buy VOO?⌄
VOO is available via Hatch, Stake, Sharesies (US market), and Interactive Brokers. Compare per-trade fees and FX spreads — IBKR has the lowest published all-in cost at scale; Hatch and Stake are simpler for smaller, less-frequent trades. Sharesies offers fractional shares.
How is VOO taxed for NZ investors?⌄
US-domiciled ETFs sit in the FIF regime above NZ$50,000 cost base — most NZ investors apply the FDR method (5% of opening market value × marginal tax rate). Dividends carry 15% US withholding tax with a W-8BEN on file (claimable as a foreign tax credit). The NZX-listed Smartshares US 500 (USF) is a PIE-taxed alternative without FIF.
