The S&P 500 is widely regarded as one of the best benchmarks for the health of the stock market and the economy, and it has historically delivered strong returns over the long term.

But which S&P 500 ETF should you choose? There are many options available, but two of the most popular and widely traded ones are VOO and SPY. Both of these ETFs aim to mimic the returns of the S&P 500 index by holding the same stocks in the same proportions as the index.

However, they’d also have some differences that might affect your decision.

Overview of VOO and SPY

VOO and SPY will essentially have the same performance, as you can see in the chart above. However, which product you choose depends on whether you are an active trader or an investor.

SPY is the best for active traders, while VOO has the lowest expense ratio making it cheaper for investors to hold.

VOO vs. SPY Dividend Yield

One factor that might influence your choice of ETF is the dividend yield. Both VOO and SPY pay quarterly dividends to their shareholders based on the dividends received from the underlying stocks in the S&P 500 index.

As you can see, VOO has a slightly higher dividend yield than SPY, but this is not a significant difference and may change over time.