0.0945% vs 0.03%
SPY's expense ratio is more than 3x VOO's. On a $100,000 position, that's roughly $65 extra per year. Small in absolute terms but compounds over decades.
Guardfolio Research · ETF Overlap
SPY vs VOO Overlap: Same S&P 500, Different Fees
SPY and VOO hold the same stocks. Both track the S&P 500, so the top-10 holdings, weights, and sector exposure are essentially identical. The only meaningful differences are expense ratio (VOO 0.03% vs SPY 0.0945%), legal structure, and trading liquidity. For long-term holders this is a fee comparison, not an overlap question.
Overlap Summary
Top-10 Weight Overlap38.4%
Shared Top-1010 of 10
Full-fund Overlap~100%
Fee Gap0.0645pp
Bottom line
Same holdings, same index, same exposure. The decision is fee, structure, and liquidity — not what's inside the fund.
The Data
Exactly which stocks SPY and VOO share
Both funds track the S&P 500, so their holdings are not just similar — they're the same names at the same weights. The table below shows the top 10 with each fund's weight side by side. Notice the columns are identical:
| Stock | SPY weight | VOO weight | 50/50 combined |
|---|---|---|---|
| Nvidia (NVDA) | 7.84% | 7.84% | 7.84% |
| Apple (AAPL) | 6.44% | 6.44% | 6.44% |
| Microsoft (MSFT) | 4.89% | 4.89% | 4.89% |
| Amazon (AMZN) | 4.19% | 4.19% | 4.19% |
| Alphabet Class A (GOOGL) | 3.62% | 3.62% | 3.62% |
| Broadcom (AVGO) | 3.20% | 3.20% | 3.20% |
| Alphabet Class C (GOOG) | 2.89% | 2.89% | 2.89% |
| Meta (META) | 2.16% | 2.16% | 2.16% |
| Tesla (TSLA) | 1.74% | 1.74% | 1.74% |
| Berkshire Hathaway (BRK.B) | 1.40% | 1.40% | 1.40% |
| Total top-10 weight | 38.4% | 38.4% | 38.4% |
Weights are approximate, sourced from public issuer fact sheets and refreshed quarterly. The 38.4% figure is the combined top-10 weight for either fund. Beyond the top 10, both funds continue to hold the same ~490 additional S&P 500 names at the same market-cap weights, so the practical full-fund overlap is essentially 100%.
See your real SPY + VOO overlap
If you hold both SPY and VOO across different brokerages, Guardfolio shows the duplicate exposure stacked together so you can see your real S&P 500 weight, across every account.
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The Real Comparison
Why the fee gap is what matters here
Since the holdings are identical, the SPY vs VOO question reduces to a few non-portfolio factors. The biggest is fees:
~$13,000 over 30 years
On a $100k starting balance at 7% real returns, the cumulative drag from SPY's higher fee is roughly $13,000 in lost fees and forgone compounding — about 5% of the final balance gap between the two.
Structural tax efficiency
VOO is an open-end fund and can use heartbeat trades to manage low-cost-basis lots. SPY is a unit investment trust and cannot. The effect is small but adds a few basis points of additional drag in taxable accounts.
Sector Comparison
How SPY and VOO compare on sector weight
Identical. Both funds track the S&P 500 with no methodology differences, so their sector profiles are the same to within rounding:
| Sector | SPY | VOO | Difference |
|---|---|---|---|
| Technology | 33.1% | 33.1% | 0.0pp |
| Financial Services | 12.2% | 12.2% | 0.0pp |
| Consumer Discretionary | 10.4% | 10.4% | 0.0pp |
| Healthcare | 9.3% | 9.3% | 0.0pp |
| Industrials | 8.6% | 8.6% | 0.0pp |
| Communication Services | 8.2% | 8.2% | 0.0pp |
| Consumer Staples | 5.5% | 5.5% | 0.0pp |
Both funds report the same sector weights to one decimal place because they hold the same index. There is no meaningful sector-level tilt between them — the difference is structural, not what they own.
Key Distinction
SPY vs VOO: what's actually different
| SPY | VOO | |
|---|---|---|
| Index tracked | S&P 500 | S&P 500 |
| Sponsor | State Street | Vanguard |
| Legal structure | Unit Investment Trust | Open-end fund |
| Expense ratio | 0.0945% | 0.03% |
| Dividend reinvestment inside fund | No (held as cash) | Yes (heartbeat-eligible) |
| Average daily volume | ~70M shares | ~6M shares |
| Options market depth | Deepest in US equities | Thin |
| Main use case | Active trading, options | Long-term hold |
The honest summary: VOO is the better long-term hold (cheaper, marginally more tax-efficient, same exposure). SPY is the better trading vehicle (deeper liquidity, deeper options chain). For 90% of retail buy-and-hold investors, the question is purely whether the fee gap justifies switching — and over a multi-decade holding period, it usually does.
Practical Implications
When does the SPY/VOO choice actually matter?
If you're a long-term holder
Use VOO. Same exposure at one-third the fee, with slightly better tax efficiency in taxable accounts. The structural simplicity of an open-end fund matters more than the deeper SPY options market you won't use.
If you trade options on the S&P 500
Use SPY (or SPX index options). SPY's options market is the deepest in US equities — tighter spreads, more strikes, more expirations. The liquidity advantage outweighs the fee disadvantage for active strategies.
If you already own one and want to switch
In a taxable account, switching SPY to VOO can trigger capital gains. Run the numbers: the fee savings need to outweigh the tax cost. In an IRA or 401(k), switching is free — just sell SPY, buy VOO.
If you hold both already
Owning both is pure duplication with no diversification benefit. Consolidate into VOO (or whichever lot has the lower cost basis if tax considerations matter). Then put the saved "diversification" budget into a fund that actually adds exposure: small-cap, international, or a different asset class.
Alternatives
What actually diversifies away from SPY or VOO
If you want to add real exposure to your S&P 500 core, these pairings work much better than doubling up on SPY + VOO:
VOO + IWM (0% overlap)
IWM tracks the Russell 2000 small-caps. Zero top-10 holdings overlap with VOO. True diversification across market-cap bands.
VOO + AVUV or VBR (small-cap value)
Small-cap value adds a different factor exposure. Historically lower correlation with mega-cap growth, near-zero top-10 overlap with VOO.
VOO + VXUS (international)
VXUS covers developed and emerging markets ex-US. Near-zero overlap with VOO and the classic "complete the market" pairing.
VOO + SCHD (0% overlap)
SCHD's dividend-quality screen filters out most mega-cap growth names. Zero top-10 overlap with VOO and a different factor exposure entirely.
Frequently Asked Questions
SPY vs VOO overlap — common questions
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