The S&P 500 makes investing simple. The famous stock market index offers instant exposure to roughly 500 of America’s biggest public companies. Because the S&P 500 is an index, you can’t invest in it directly, but you can buy shares of the exchange-traded funds (ETFs) that track it.
Does it really matter which S&P 500 ETF you buy? It can.
The Vanguard S&P 500 ETF (VOO +0.98%) and the SPDR S&P 500 ETF Trust (SPY +1.19%) are two of the most popular choices, and might be the two most famous stock market ETFs of all. Although they are very similar, there are some differences between the two that can steer investors toward one or the other.
Here’s what each ETF is best at, and why Vanguard’s S&P 500 ETF makes a little more sense for most investors.
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The oldest U.S. ETF makes more sense for traders
You could consider the SPDR S&P 500 ETF Trust the old-school…
