This question was posed by MM, DDS
Monday Morning Millionaire Program Answer:
Both VOO (Vanguard’s) and SPY (S&P Depository Receipts) are ETF’s (exchange-traded funds) that track the S&P 500 index. Their 10-year charts are practically identical. (VOO was launched 10 years ago so we cannot go further back.)
However, their expense ratios are .05% and .09% respectively. The .04% difference, albeit small, makes VOO a better choice for long-term investors.
If you manage an “explore” portfolio SPY is a better choice. It is the world’s largest ETF with the biggest number of options contracts outstanding (known as “open interest”). The bid/ask spread is tiny which minimizes transaction costs.
Please note that conservative investors do not need an “explore” portfolio. Such a portfolio is for risk capital only. While it is the only way to beat the S&P 500 index it is highly unlikely to do so.