Nerdy takeaways
- IVV, VOO, SPY and SPYM are among the most popular S&P 500 ETFs.
- These four S&P 500 ETFs are quite similar, but may sometimes diverge in terms of costs or daily returns.
- Investors generally only need one S&P 500 ETF.
Over the long term, it’s incredibly difficult to assemble a portfolio that outperforms the S&P 500, which has delivered average annual returns of about 10% over nearly the last century. What’s more, buying an S&P 500 exchange-traded fund, or ETF, is an easy way for investors to buy a big slice of the market for a relatively small price.
And while most S&P 500 ETFs are composed of the same investments, there are some differences you should know before making a selection between them.
What's the best S&P 500 ETF?
If you search for S&P 500 ETFs, you may come across dozens of funds. Just because S&P 500 is in a fund’s name doesn’t necessarily mean it tracks the index as a whole. Rather, many of these ETFs track sub-components, say value or growth stocks, within the broader index.
But you won’t have to wade through a ton of options to decide on an ETF that tracks the performance of the S&P 500 index as a whole. The following funds track the entirety of the index.
ETF | Ticker | Annualized 5-year return | Expense ratio |
|---|---|---|---|
State Street SPDR Portfolio S&P 500 ETF | SPYM | 13.38% | 0.02% |
iShares Core S&P 500 ETF | IVV | 13.38% | 0.03% |
Vanguard S&P 500 ETF | VOO | 13.38% | 0.03% |
SPDR S&P 500 ETF Trust | SPY | 13.31% | 0.09% |
Source: Finviz. Data is current as of September 23, 2026, and is for informational purposes only. | |||
» Shopping for a brokerage? See our list of the best brokers for ETF investing
How to choose an S&P 500 ETF
The four S&P 500 ETFs are quite similar in two important aspects: You won’t have trouble finding these ETFs at most online brokers, and they’re very liquid, meaning it’s easy to buy and sell them on any given day.
We’re not here to pick a winner — the right fund for you is a personal decision — but there are some nuances you may want to consider:
- Expense ratios. SPYM boasts the lowest management fee at 0.02%, about one-fifth of SPY's, with IVV and VOO close behind SPYM at 0.03%. While the difference between a 0.02% and 0.0945% expense ratio may seem trivial, such fees can really add up. For every $10,000 invested, these respective fees equal $2 and $9.45 annually. Then consider the difference at higher balances, such as $100,000.
- Trading costs. Most major brokerages no longer charge commissions on ETF, stock or options trades, but the specific list may vary.
- Price. There’s a big difference in the price at which each fund currently trades, with SPYM trading at a much lower price than the other three ETFs. But this shouldn’t necessarily be a deciding factor, as many brokers offer fractional shares these days.
- Yield and return. There are some slight differences across these funds, even though they all track the same index. These differences generally relate to return and yield. These returns will change over time, and there's no guarantee that the ETF with the best return right now will have the best return in the future. That's why we look at the five-year return — to see how each ETF performs over the long term.
What's the difference between SPY and SPYM?
Both SPY and SPYM are managed by the same company, State Street, and both ETFs track the S&P 500. The main differences are cost and volume. SPY has a huge trading volume, which active traders might favor. SPYM, on the other hand, is smaller than SPY but it also has the lowest expense ratio of any ETF on our list, which may make it appealing to long-term investors.
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You only need one S&P 500 ETF
For some people, digging into the details is half the fun of investing. For others, it’s all minutiae. All four of the ETFs listed here have lower-than-average expense ratios and offer an easy way to buy a slice of the U.S. stock market.
You could be tempted to buy all four ETFs, but just one will do the trick. You won’t get any additional diversification benefits (meaning the mix of various assets) because all four funds track the same 500 companies. What’s more, you might tie up money that could be better invested elsewhere.
What's next?
No matter which S&P 500 ETF you ultimately select, this fund should serve as a foundation in your portfolio. Not sure what to invest in next? Our guide on how to build a good investment portfolio offers some tips.
Frequently Asked Questions
Which S&P 500 ETF has the highest volume?
At the time of writing, the SPY ETF has considerably greater volume than the other three S&P 500 ETFs listed in this article.
Do S&P 500 ETFs pay dividends?
Usually, yes, although S&P 500 ETFs may have a lower yield than high-dividend ETFs.
Neither the author nor editor held positions in the aforementioned investments at the time of publication.
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