Vanguard's VOO vs. SPY: Top Investor Chooses the Best S&P 500 ETF to Buy in 2026

The S&P 500 is widely viewed as a benchmark for the largest and most influential companies in the U.S. economy. Two popular exchange-traded funds – the Vanguard S&P 500 ETF (VOO) and the SPDR S&P 500 ETF Trust (SPY) – are designed to closely track the index's performance.Claim 70% Off TipRanks PremiumUnlock hedge fund-level data and powerful investing tools for smarter, sharper decisions Stay ahead of the market with the latest news and analysis and maximize your portfolio's potential It's therefore no big surprise that the returns of both ETFs are practically identical, with each rising by 21% over the past twelve months. The performance also includes a slight dip during 2026, as worries over AI capex spending have dealt a blow to the hyperscalers. Given the heavy weighting of major technology companies in the index, both VOO and SPY are significantly exposed to firms such as Nvidia, Microsoft, and Apple. Consequently, recent weakness in these stocks has also pressured the year-to-date performance of the ETFs. Still, the track record of U.S. business over the years is one of growth and progress, making VOO and SPY a great spot to park money for those who have faith in the American story. However, if both ETFs deliver the same goods, which one makes the most sense to buy in 2026? Top investor Robert Izquierdo breaks down both investment vehicles, comparing and contrasting VOO and SPY. "Both ETFs mirror the S&P 500, but key differences in cost and liquidity may influence which fund best aligns with your investment strategy," explains the 5-star investor, who is among the top 2% of stock pros covered by TipRanks. Though the returns are indeed the same, Izquierdo points out a few different ways in which they differ. First and foremost, the cost of holding the two ETFs doesn't match. VOO's expense ratio is 0.03%, while SPY's is 0.09%. Another key difference: liquidity. Izquierdo notes that on one recent trading day, SPY's trading volume was around 80 million, while VOO's was a much lower 10 million. "This gives SPY unmatched liquidity, making it an ideal choice for day traders or any active investor who wants to make frequent trades," details Izquierdo. However, on the flip side, for those who want to benefit from the S&P 500 over the long haul – and at a cheaper cost – VOO is the way to go. "For investors who have a 'set it and forget it' mindset, and want to buy and hold for the long term … VOO is the superior choice," concludes Izquierdo. (To watch Izquierdo's track record, click here)