[Laura]

Would SPLG or VOO be a better choice right now for an S&P500 ETF?
I know this is down to really tiny nitpicky differences, but if I’m going to invest and hold for life I’d like to know why I’m choosing the fund I’m choosing.

Expense ratio is slightly lower for SPLG (.02) vs. VOO (.03). But I’ve also heard VOO may rebalance more times per year than SPLG.

Does that make any difference with tax efficiency or performance?

Also, SPLG seems to have changed which index it tracks a few times.

It concerns me I could dump all my money into an ETF that decides in a couple years it wants to track something other than the S&P500 and now I’m all in on a strategy I didn’t choose myself.

Would love to hear your thoughts on these funds and why you’d pick one over the other if you were investing today!

[Patrick]

There is so little difference that it’s not worth spending more than a minute on. Buy either one, or go with SPLG since it has a slightly smaller expense ratio.

[Cody]

It’s like buying two ripe bananas with different brands. VOO has 10x the assets, but they are both fairly liquid.

[Amy]

VOO and SPLG have such similar performance and expense ratios that either is fine.

If SPLG does change its index in the future, that would actually make it useful for tax loss harvesting VOO and vice versa.

[Christopher]

Why would voo rebalance more? That funds has orders of magnitude more assets, and a similarly larger cash position to weather buys and sells.

I think smaller funds typically rebalance more due to higher tracking error and fewer opportunities for round lots within the budget’s constraints.

Until you have $10,000,000 invested in either one, your savings will be under $1,000 per year at best, all other things being equal.

If that kind of spread matters, consider something like FZROX, with a 0% expense ratio (I don’t personally think it’s worth time and effort fussing over these negligible costs, but if one wants to hyper-optimize, it’s silly to stop half way).

[Destin]

If you sell options SPLG could be more cost efficient, but less liquid.

[Lexi]

I picked splg just because it was the lowest expense ratio ETF I could find. Otherwise I would prob go with fxaix or fzrox.

VOO I’m doing for fun in a taxable account whenever I get random refunds or rewards once I get $10+ saved it’s up to half a share already.

[Author]

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