Best S&P 500 ETFs

If you just want a clear answer, most long-term investors usually end up comparing four names: VOO, IVV, SPY and SPLG. All four give you S&P 500 exposure. The real question is not “which one is magic,” but which one fits the way you invest.

Quick Answer

If you are a simple buy-and-hold investor, VOO and IVV are usually the easiest answers because they are low-cost, highly established and designed for long-term investing.

If you trade frequently and care about liquidity above everything else, SPY is often the one traders watch.

If you want a very low-cost S&P 500 ETF and do not care much about brand preference, SPLG is also worth looking at.

S&P 500 ETF Overview

Category VOO IVV SPY SPLG
Provider Vanguard iShares State Street SPDR
Tracks S&P 500 S&P 500 S&P 500 S&P 500
Expense Ratio 0.03% 0.03% 0.0945% 0.02%
Typical Investor Long-term buy-and-hold Long-term buy-and-hold Frequent trader Cost-focused long-term investor

What Actually Matters Most

Many investors spend too much time worrying about tiny differences that will probably not change their life.

In practice, there are only three questions that matter:

1. Do you want to buy and hold for many years? 2. Do you care more about the lowest fee or the most trading liquidity? 3. Do you want a fund that is simple enough to keep buying without second-guessing yourself?

If you are investing every month or every quarter for the next 10 to 20 years, the difference between these funds is usually much smaller than the difference between staying invested and jumping in and out of the market.

When VOO or IVV Usually Make the Most Sense

VOO and IVV are often the most natural choices for long-term investors because both offer low fees and broad S&P 500 exposure.

If your goal is simply to build wealth over time through regular investing, either one is usually a very reasonable answer.

For most people, choosing between VOO and IVV is more about platform preference, habit or brand comfort than a major portfolio difference.

Why Some Investors Still Choose SPY

SPY is usually not the “best” choice for a pure long-term buy-and-hold investor on cost alone.

But SPY remains extremely popular because of its massive liquidity and trading activity. That matters more to active traders, institutions and investors who care about tight spreads and fast execution.

So the honest way to think about SPY is this:

Long-term investor → usually not the cheapest option Active trader → often one of the most useful tools

Where SPLG Fits In

SPLG is the low-cost SPDR option in this group. Investors who want S&P 500 exposure at a very low expense ratio sometimes choose it instead of VOO or IVV.

For a buy-and-hold investor, SPLG can absolutely work. The main difference is that many retail investors simply know VOO and IVV better, so those names come up more often in conversation.

In other words, SPLG is not the “famous” pick, but it can still be a practical one.

A Simple Investor View

If you want the shortest practical answer:

VOO — great for long-term investors who like Vanguard IVV — basically the same long-term idea through iShares SPY — more useful for trading than for lowest-cost holding SPLG — very low-cost S&P 500 exposure, worth considering

For most ordinary investors, the best S&P 500 ETF is often the one you understand clearly and can keep buying consistently.

Use the VOO Calculator

If you are comparing S&P 500 ETFs because you want to invest regularly over time, our calculator can help you estimate growth, contribution timing, fee impact and inflation-adjusted value.

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