The S&P 500 has returned about 10% per year on average over the past 90 years. That track record is why so many investors want exposure to it. The catch is that there are at least a dozen ETFs that track the same index, and the small differences in fees and structure add up to real money over decades.
This guide compares the best S&P 500 ETF options in 2026, focusing on the three giants, VOO, IVV, and SPY, plus a couple of niche alternatives worth knowing. By the end, you will know which fund fits your goals and how to actually buy it. If you want a primer on what these funds actually are first, our overview of index funds is a good place to start.
Why Choose an S&P 500 ETF at All
The S&P 500 index fund holds 500 of the largest US companies, including Apple, Microsoft, Amazon, Nvidia, and Berkshire Hathaway. When you buy an S&P 500 ETF, you own a tiny slice of every one of them. That broad diversification protects you from the risk of any single stock blowing up.
Index ETFs also beat most active fund managers over time. Studies show roughly 85% of large-cap active funds fail to beat the S&P 500 over a 10-year stretch. Paying a manager to underperform makes no sense when a low-cost index fund does the job for almost free.
Our Top 5 Picks for Best S&P 500 ETF
All five of these ETFs track the S&P 500 index. The differences come down to fees, share price, and which company runs the fund. For a side-by-side look at the two most-compared tickers, see our SPY vs VOO breakdown.
1. Vanguard S&P 500 ETF (VOO)
Vanguard S&P 500 ETF (VOO) is the most popular S&P 500 ETF for long-term investors. As of May 2026, the expense ratio is 0.03%, or $3 per year on every $10,000 invested. Total assets across share classes exceed $1.5 trillion. Vanguard has a reputation for shareholder-friendly pricing and rarely raises fees.
Best for: long-term buy-and-hold investors who want the cheapest, most trusted option.
2. iShares Core S&P 500 ETF (IVV)
iShares Core S&P 500 ETF (IVV) is BlackRock's answer to VOO. It charges the same 0.03% expense ratio and holds the same 500 stocks. As of May 2026, it manages over $686 billion in assets. Performance and dividends track VOO closely, often within hundredths of a percent.
Best for: investors who use a Fidelity or other brokerage that offers IVV with no transaction fees.
3. SPDR S&P 500 ETF Trust (SPY)
SPDR S&P 500 ETF Trust (SPY) is the oldest and most heavily traded ETF in the world. It launched in 1993. The expense ratio is 0.0945%, higher than VOO or IVV, but its liquidity is unmatched. Daily trading volume runs about 10 times that of VOO. That depth makes it the preferred choice for options strategies and institutional traders.
Best for: active traders and options strategies that need deep liquidity.
4. iShares S&P 500 Growth ETF (IVW)
iShares S&P 500 Growth ETF (IVW) is not a pure S&P 500 ETF, but it deserves mention. It holds the growth half of the S&P 500, meaning companies with the strongest revenue and earnings growth. The expense ratio is 0.18%. If you want a tilt toward tech and innovation within the index, IVW gives you that.
Best for: investors who want S&P 500 exposure with a growth-style tilt.
5. Invesco S&P 500 Equal Weight ETF (RSP)
Invesco S&P 500 Equal Weight ETF (RSP) holds the same 500 stocks but weights each one equally rather than by market cap. The expense ratio is 0.20%. This reduces the concentration risk of the mega-cap names like Apple and Microsoft. Returns can lag during years dominated by mega-caps but outperform in years when smaller S&P 500 names lead.
Best for: investors who want S&P 500 exposure without the heavy mega-cap tilt.
Expense Ratios Add Up Over Time
The gap between SPY at 0.0945% and VOO at 0.03% may sound trivial. Over 30 years on a $50,000 starting balance, the difference compounds to roughly $11,000 in lost returns. Small numbers matter when time and compounding are involved.
This is why long-term investors strongly favor VOO and IVV over SPY. SPY is still excellent, but its higher fee makes it a worse choice for buy-and-hold accounts.
Performance Has Been Nearly Identical
All three major S&P 500 ETFs track the same index, so their gross performance is nearly identical. The small differences in net returns come from expense ratios and tiny tracking errors. Over a 10-year period, VOO and IVV typically beat SPY by a few basis points per year, which matches the fee gap.
In other words, you are not picking a better strategy when you choose between these funds. You are picking a cheaper version of the same strategy.
How to Buy Your Pick
Buying an S&P 500 ETF is simple. Open a brokerage account at Fidelity, Charles Schwab, Vanguard, or any major broker. Most charge zero commission on ETF trades. Transfer cash from your bank, search the ticker, and place a market order. If the process is new to you, our walkthrough on how to buy stocks covers each step in detail.
For very small budgets, fractional shares let you buy any portion of a share for as little as $1. You do not need to wait until you can afford a full share to start. Setting up automatic monthly purchases is one of the simplest paths to building wealth. Comparing the best stock apps can help you pick a platform that supports recurring fractional buys with no friction.
A commission-free broker like Robinhood is a popular pick for first-time S&P 500 ETF investors. It supports fractional shares of VOO, IVV, and SPY with no account minimum and no commissions, so you can start a recurring buy with whatever you can afford each month.
Robinhood
Robinhood
Robinhood is a trading platform that brings stocks, ETFs, options, futures, prediction markets, crypto, and retirement accounts together in one app.
Standout feature
One platform for stocks, ETFs, options, futures, prediction markets, and crypto
Fees
$0 commission on stocks, ETFs, and options.
Pros
Zero-commission trading on stocks, ETFs, and options
Cons
Best perks (high APY, lower margin rates) require Gold subscription ($5/month)
Build Credit Alongside Your Investments
Growing a portfolio in VOO or IVV is one half of financial health. Building a strong credit profile is the other half. A higher credit score lowers your interest costs on mortgages, auto loans, and credit cards, which often saves more money than your investments earn in the same period. While you are growing your portfolio, products like the Self Visa® Credit Card or Kikoff Secured Credit Card help you build credit at the same time.
If you have no credit history yet, the Current Build Card and Self.Inc Credit Builder Account are popular starting points. Both report to all three credit bureaus and require no traditional credit check. Pair them with a budgeting app like Monarch Money to keep your investing and credit-building habits consistent.
Tax Account Choices
Where you hold your S&P 500 ETF matters. A Roth IRA grows tax free, and you can withdraw qualified gains tax free in retirement. A traditional 401(k) defers taxes until withdrawal. A standard brokerage account creates taxable events whenever you sell at a gain or receive dividends.
For most long-term investors, filling tax-advantaged accounts first makes the most sense. Once you max your Roth IRA at $7,000 for 2026 or your 401(k), any extra savings can go in a taxable brokerage account.
Frequently Asked Questions
Is VOO better than SPY?
For long-term investors, yes. VOO has a lower expense ratio of 0.03% compared to SPY's 0.0945%. Both track the same 500 stocks. SPY's only edge is its much higher trading volume, which matters for options traders and institutions, not buy-and-hold investors.
Can I own both VOO and IVV?
You can, but there is little reason to. The two funds hold the same stocks, charge the same fee, and perform almost identically. Owning both adds complexity without any meaningful diversification benefit.
What is the cheapest S&P 500 ETF?
VOO and IVV are tied as the cheapest mainstream options at 0.03% each. SPLG, the SPDR Portfolio S&P 500 ETF, charges 0.02%, making it slightly cheaper but with less trading volume. For most investors the difference is meaningless.
How much do I need to start buying an S&P 500 ETF?
With fractional shares, as little as $1. A full share of VOO costs over $500 as of May 2026, but most brokerages let you buy a fraction of a share. This makes building a position over time straightforward, even on a small budget.
