Best S&P 500 ETFs to Buy in 2026
VOO, IVV, SPY, or SPLG? We compare the best S&P 500 ETFs by expense ratio, liquidity, and dividend yield so you can pick the right one and start building wealth today.
📚 Part of our Complete Investing Guide
If you want to invest in the US stock market with minimal effort, maximum diversification, and rock-bottom costs, an S&P 500 ETF is the single best tool available to most investors.
But there are multiple funds tracking the same index. VOO, IVV, SPY, SPLG — they all follow the S&P 500. So which one should you buy?
This guide breaks down the best S&P 500 ETFs in 2026, compares them across every metric that actually matters, and tells you which one to choose depending on your situation.
What Is an S&P 500 ETF?
An S&P 500 ETF is a fund that holds all 500 companies in the S&P 500 index, weighted by market capitalization. When you buy one share, you instantly own a tiny slice of Apple, Microsoft, Amazon, Nvidia, and 496 other large US companies.
Because the fund simply replicates the index — rather than paying analysts to pick stocks — costs are extremely low. And because the S&P 500 has returned an average of roughly 10% per year over the past century, these funds have an outstanding long-term track record.
What to Look for in an S&P 500 ETF
Since all S&P 500 ETFs hold essentially the same stocks, the differences come down to a few key metrics:
- Expense ratio — the annual fee you pay. Lower is better. Even 0.05% compounded over 30 years is real money.
- Assets under management (AUM) — larger funds are more liquid and less likely to close.
- Bid-ask spread — the cost of each transaction. Matters most for active traders, less for long-term investors.
- Dividend yield — all S&P 500 ETFs pay quarterly dividends. Yields are similar across funds (~1.3-1.4%).
- Tracking error — how closely the fund matches the actual index. The best funds have near-zero tracking error.
The Best S&P 500 ETFs in 2026
1. VOO — Vanguard S&P 500 ETF
Expense ratio: 0.03% | AUM: ~$550B | Dividend yield: ~1.35%
VOO is the gold standard for long-term individual investors. At 0.03%, you pay just $3 per year on every $10,000 invested. Vanguard's unique ownership structure — the fund company is owned by its funds, which are owned by investors — means there is no profit motive to raise fees.
VOO is the most popular choice among passive investors and the default recommendation for most personal finance advice. If you are opening a Vanguard or Fidelity account, this is likely your best option.
2. IVV — iShares Core S&P 500 ETF
Expense ratio: 0.03% | AUM: ~$530B | Dividend yield: ~1.35%
IVV is essentially identical to VOO in cost and performance. It is BlackRock's flagship S&P 500 ETF and is the better option if you hold a brokerage account at Fidelity, Charles Schwab, or another platform where IVV trades with no transaction fees.
For practical purposes, VOO and IVV are interchangeable. Pick whichever is commission-free on your platform.
3. SPLG — SPDR Portfolio S&P 500 ETF
Expense ratio: 0.02% | AUM: ~$50B | Dividend yield: ~1.35%
SPLG has the lowest expense ratio of any major S&P 500 ETF at 0.02% — shaving one basis point off VOO and IVV. It is State Street's low-cost version, repositioned in 2020 to compete directly with Vanguard and BlackRock.
The main downside is lower AUM and liquidity compared to VOO or IVV, which means slightly wider bid-ask spreads. For a buy-and-hold investor making monthly contributions, this is not meaningful. For someone investing a large lump sum, it is worth noting.
4. SPY — SPDR S&P 500 ETF Trust
Expense ratio: 0.09% | AUM: ~$580B | Dividend yield: ~1.30%
SPY is the original S&P 500 ETF, launched in 1993, and still the most heavily traded equity product in the world. Its extreme liquidity makes it the preferred instrument for institutional traders and options strategies.
However, at 0.09%, SPY is three times more expensive than VOO or IVV. On a $100,000 portfolio held for 30 years, that difference compounds to roughly $15,000 in lost returns.
Unless you are trading options on SPY or need intraday liquidity, VOO or IVV are better choices for long-term investors.
5. FXAIX — Fidelity 500 Index Fund
Expense ratio: 0.015% | AUM: ~$550B | Dividend yield: ~1.35%
Technically a mutual fund rather than an ETF, FXAIX is Fidelity's S&P 500 index fund and has the lowest expense ratio in this comparison at 0.015%. It trades at end-of-day NAV rather than throughout the day like ETFs.
FXAIX is only available through Fidelity accounts. If that is where you invest, it is arguably the best option — fractional shares, no minimums, and the lowest cost available.
S&P 500 ETF Comparison: VOO vs IVV vs SPY vs SPLG
| Fund | Expense Ratio | AUM | Best For |
|---|---|---|---|
| VOO | 0.03% | ~$550B | Vanguard accounts, long-term investors |
| IVV | 0.03% | ~$530B | Fidelity/Schwab accounts, same cost as VOO |
| SPLG | 0.02% | ~$50B | Cost-conscious long-term buyers |
| SPY | 0.09% | ~$580B | Options trading, institutional liquidity |
| FXAIX | 0.015% | ~$550B | Fidelity account holders only |
Which S&P 500 ETF Should You Buy?
The honest answer: it does not matter much. The performance difference between VOO, IVV, and SPLG over 30 years is negligible. What matters infinitely more is that you actually invest — consistently, over a long period.
That said, here is the simple decision framework:
- Fidelity account: FXAIX (mutual fund) or IVV (ETF)
- Vanguard account: VOO
- Schwab account: SCHB or IVV
- Any other broker: VOO or IVV, whichever is commission-free
- Trading options: SPY
- Maximum cost obsession: SPLG
How to Buy an S&P 500 ETF
Buying an S&P 500 ETF takes less than five minutes:
- Open a brokerage account (Fidelity, Vanguard, Schwab, or a robo-advisor)
- Fund the account via bank transfer
- Search for the ETF ticker (VOO, IVV, etc.)
- Enter the number of shares or dollar amount
- Place a market or limit order
Set up automatic monthly investments and you have done more for your financial future than most people ever will.
The Bottom Line
The best S&P 500 ETF in 2026 is the one available on your platform at the lowest cost. For most investors, that means VOO or IVV. Both charge 0.03%, track the same index, and have decades of proven performance.
Stop searching for the perfect fund. Buy one, automate contributions, and let compounding do its job.
The Little Book of Common Sense Investing by John C. Bogle — The founder of Vanguard makes the definitive case for index funds. Short, clear, and decades ahead of its time. Required reading before you invest a single dollar.
The Simple Path to Wealth by JL Collins — The most accessible guide to index fund investing ever written. Collins explains exactly why VTSAX (and by extension VOO) is all most people ever need.
Prefer audiobooks? Both titles are available on Audible — try it free for 30 days and get your first audiobook included.
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