Traders vs. Savers
SPY and VOO are basically twins—they both track the exact same S&P 500 index with virtually identical holdings and performance.
The real difference comes down to two things: cost and structure. VOO charges just 0.03% in fees while SPY charges 0.09%—that's three times more expensive.
SPY is also structured as a unit investment trust, which means it can't automatically reinvest dividends or do some other efficiency tricks that VOO can, making VOO slightly more tax-efficient too.
The one area where SPY wins is liquidity—which matters especially if you're an options trader. SPY has an extensive and incredibly liquid options market—way more weekly, monthly, and quarterly options contracts than VOO, plus it's the deepest options market of any ETF.
