VOO vs. IWO: What's the Difference for S&P 500 Investors in 2026?
Key takeaways
- Both funds seek to mirror the performance of the S&P 500 index, representing a broad cross-section of large-cap American companies.
- Beta measures price volatility relative to the S&P 500; beta is calculated from five-year monthly returns.
- The Vanguard fund is more affordable for long-term holders with an expense ratio of 0.03% compared to the 0.09% fee for the SPDR trust.
Both funds seek to mirror the performance of the S&P 500 index, representing a broad cross-section of large-cap American companies. While the SPDR trust holds a legendary status as the first U.S.-listed ETF, the Vanguard fund may appeal to long-term investors focused on minimizing costs and maximizing total returns.
Beta measures price volatility relative to the S&P 500; beta is calculated from five-year monthly returns. The 1-yr return represents total return over the trailing 12 months. Dividend yield is the trailing-12-month distribution yield.
The Vanguard fund is more affordable for long-term holders with an expense ratio of 0.03% compared to the 0.09% fee for the SPDR trust. Furthermore, the Vanguard fund offers a slightly higher yield of 1.1% versus 1.0% for its competitor.