TIM Thomas

Which S&P 500 ETF is Best for Long Term Profits? SPY vs VOO 

Where is a good place to put my money? I hear people saying. What is a good investment strategy? Usually, I would suggest a good index fund or index fund ETF.

What is an ETF?

An ETF is an Exchange-traded fund. It works like a mutual fund but is traded on the open market like a stock.

Why SPY vs VOO?

These two ETFs track the S&P 500 Index. They are comprised of the 500 largest companies in the U.S.A. These two ETFs have some of the most oversized market caps around, and they give you the ability to create an effective investing strategy.

SPY: SPDR S&P 500 Trust Overview:

Looking at SPY, it is one of the oldest ETFs out there. This is the ETF most people will think about when they hear the word ETF. SPY was created by State Street in 1993.

VOO: Vanguard S&P 500 Index Fund ETF Overview

Vanguard created VOO as an ETF to VFIAX. Its inception was in 2010 and has averaged about 16.51% per year for the last ten years.

Here are the top 5 sectors of the fund: – Technology (31.82%) – Financials (15.10%) – Consumer Discretionary (13.54%) – Healthcare (11.27%) – Industrials (10.83%)

SPY vs VOO: The Similarities Between the Two

- Track the S&P 500 - Similar top 10 Companies - Diversification is key - Only Invest in Companies in S&P 500

The Differences Between SPY vs VOO:

- The Expense Ratios - Management Companies - Liquidity - The Yield

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