3 Key Differences Between These 3 S&P 500 ETFs — and Which One To Invest In, According to a Money Expert

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The S&P 500 is a stock market index consisting of the top publicly traded U.S. companies. While you can’t invest directly in the S&P 500, you can invest in funds. But with so many to choose from, it can be hard to pick the best one. Equally challenging is knowing what makes one different from another.

In a recent TikTok video, personal finance expert Humphrey Yang shared his thoughts on three leading S&P 500 exchange-traded funds (ETFs) and what makes them different. Here’s what you should know.

The S&P 500 ETFs

The three S&P 500 ETFs Yang referenced are the Vanguard S&P 500 ETF (VOO), the SPDR S&P 500 ETF Trust (SPY) and the iShares Core S&P 500 ETF (IVV).

All three track the S&P 500. They invest in the same stocks, meaning they have roughly the same holdings. And they have similar weights to try to mirror the S&P 500’s returns.

These three ETFs get similar returns too. Here’s the market value as of April 14, 2026, and the total return for the past five years.

• IVV: $697.53 (67.40%)
• VOO: $638.35 (67.29%)
• SPY: $694.34 (67.36%)

Top Differences Between These ETFs

As Yang pointed out, there are three main differences between these ETFs. They’re subtle, but they’re worth knowing about if you’re considering investing in any of them.

The first are expense ratios, which are basically yearly fees. Here are the expense ratios for each ETF.

• VOO: 0.03%
• IVV: 0.03%
• SPY: 0.0945%

SPY has the largest expense ratio, but when you consider the actual cost, it’s not that major. Yang gave the example of a $10,000 investment. A 0.03% expense ratio would cost $3 a year, while a 0.09% expense ratio would cost $9.

Next up is price. As Yang explained, while investors could purchase only full shares in the past, fractional shares are now an option, which lowers the barrier to entry for individual investors. As of April 14, Vanguard’s the cheapest option.

Last but not least is trading volume. Here is each ETF’s trading volume.

• VOO: 10.43 million
• IVV: 9.15 million
• SPY: 87.21 million

Which ETF Is Best?

This depends on which type of individual investor you are.

Yang said that for day traders who want the highest liquidity possible, SPY is likely the best option. But if you’re a long-term investor, all three are worth considering.

With such minor differences between all three, Yang emphasized focusing on investing consistently instead. Be sure to consider your time horizon and risk tolerance before putting your money into any investment, though.

Editor’s note: This article is for informational purposes only and does not constitute financial advice. Investing involves risk, including the possible loss of principal. Always consider your individual circumstances and consult with a qualified financial advisor before making investment decisions.

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