Overview
- Vanguard’s S&P 500 ETF (VOO) remains the low-cost default for large-cap U.S. exposure at a 0.03% expense ratio, tracking roughly 500 blue chips.
- SPDR’s SPY offers far greater intraday liquidity but carries a 0.0945% fee and a unit investment trust structure that cannot immediately reinvest dividends, creating a small long-run drag.
- Market-cap S&P 500 funds are heavily tilted to megacap tech, with Nvidia, Apple, and Microsoft alone exceeding a fifth of VOO’s portfolio, increasing single-stock and sector concentration.
- Invesco’s equal-weight RSP reduces dependence on tech giants and slightly lowers volatility but charges 0.20% and can lag when megacaps lead.
- Vanguard’s VTI extends beyond the S&P 500 to include small and mid caps at the same 0.03% fee, offering broader market coverage as investors weigh recent small-cap underperformance against early-2026 signs of strength.