What is the best s&p 500 etf in terms of returns and expense?
3/6/2026 11:26am
**Definitive take-away 🏆:**
For a *single-ticket* blend of strong S&P 500 exposure, rock-bottom cost, and proven long-term returns, **Vanguard S&P 500 ETF (VOO)** checks the most boxes right now. 📈✨
---
### Why VOO stands out 🤓
1. **Cost leadership**
• VOO’s expense ratio is **0.04 %**—among the lowest in the entire S&P 500 ETF universe.
• A separate screen of the 10 cheapest funds ranks VOO third, just above IVV and SPYM, confirming its ultra-low fee profile.
ETFs with Benchmark is S&P 500; Order by Expense Ratio Asc; Limit 10
|code|market_code|etf code|etf name|Last Price|Last Change|Benchmark|Expense Ratio|
|---|---|---|---|---|---|---|---|
|SPYM|169|SPYM.P|State Street SPDR Portfolio S&P 500 ETF|80.17|-0.558174|S&P 500 Index|0.02|
|VOO|169|VOO.P|Vanguard S&P 500 ETF|626.81|-0.5347679999999999|S&P 500 Index|0.03|
|IVV|169|IVV.P|iShares Core S&P 500 ETF|684.46|-0.555007|S&P 500 Index|0.03|
|SPY|169|SPY.P|State Street SPDR S&P 500 ETF Trust|681.31|-0.557558|S&P 500 Index|0.0945|
|SPIN|171|SPIN.B|State Street US Equity Premium Income ETF|31.8247|-0.560242|S&P 500 Index|0.25|
|FLAG|169|FLAG.P|Global X S&P 500 U.S. Market Leaders Top 50 ETF|27.5608|-0.822259|S&P 500 Index|0.29|
|SPDN|169|SPDN.P|Direxion Daily S&P 500 Bear 1X Shares|9.53|0.5274260000000001|S&P 500 Index|0.48|
|TWOX|171|TWOX.B|iShares Large Cap Accelerated Outcome ETF|28.2758|-0.718389|S&P 500 Index|0.5|
|HELO|169|HELO.P|JPMorgan Hedged Equity Laddered Overlay ETF|66.43|-0.195312|S&P 500 Index|0.5|
|BAI|169|BAI.P|iShares A.I. Innovation and Tech Active ETF|33.77|-1.40146|S&P 500 Index|0.5499999999999999|
2. **Performance that keeps pace with the index**
• VOO has delivered a **1-year total return of 18.17 %** and a **3-year total return of 28.66 %**—virtually mirroring the S&P 500’s own multi-year climb.
• These figures place VOO in the upper half of 1-year performers while still charging a sub-0.05 % fee, a sweet spot for buy-and-hold investors.
ETFs with Benchmark is S&P 500; Order by Return_1Y Desc; Limit 10
|code|market_code|etf code|etf name|Last Price|Last Change|Benchmark|Total Return[20250305-20260305]|
|---|---|---|---|---|---|---|---|
|SPXS|169|SPXS.P|Direxion Daily S&P 500 Bear 3X Shares|35.97|1.6676090000000001|S&P 500 Index|440.09009|
|SDS|169|SDS.P|ProShares UltraShort S&P500|69.31|1.0939320000000001|S&P 500 Index|237.932716|
|SPXU|169|SPXU.P|ProShares UltraPro Short S&P500|50.36|1.655228|S&P 500 Index|111.06454299999999|
|SPXL|169|SPXL.P|Direxion Daily S&P 500 Bull 3X Shares|214.89|-1.5846120000000001|S&P 500 Index|37.564817|
|UPRO|169|UPRO.P|ProShares UltraPro S&P500|112.7|-1.666521|S&P 500 Index|37.27162|
|BAI|169|BAI.P|iShares A.I. Innovation and Tech Active ETF|33.77|-1.40146|S&P 500 Index|36.997416|
|SPUU|169|SPUU.P|Direxion Daily S&P 500 Bull 2X Shares|182.04|-1.243784|S&P 500 Index|28.450466000000002|
|VOO|169|VOO.P|Vanguard S&P 500 ETF|626.81|-0.5347679999999999|S&P 500 Index|18.165708|
|SPY|169|SPY.P|State Street SPDR S&P 500 ETF Trust|681.31|-0.557558|S&P 500 Index|18.106646|
|IVV|169|IVV.P|iShares Core S&P 500 ETF|684.46|-0.555007|S&P 500 Index|18.06938|
3. **Liquidity & scale**
• With **$1.51 trillion in net assets**, VOO is the largest S&P 500 ETF, ensuring tight spreads and easy execution even for big orders.
• Its sheer size also helps keep tracking error minimal, so your returns stay aligned with the index.
4. **Built-in tax efficiency**
• Like all index ETFs, VOO’s structure limits capital-gains distributions, making it a friendlier vehicle for taxable accounts compared with traditional mutual funds.
---
### How VOO stacks up against the “extreme” performers 📊
| ETF | 1-Year Return | Expense Ratio | Take-away |
|-----|---------------|---------------|-----------|
| SPXS.P (3× bear) | **440.09 %** | 1.04 % | Turbo-charged but *inverse*—only for short-term trading |
| SDS.P (2× bear) | 237.93 % | — | High-octane short play |
| VOO | 18.17 % | **0.04 %** | Low-cost, long-term core holding |
*Why the table?* It highlights that the sky-high returns of leveraged funds come with sky-high risk and fees, whereas VOO offers a balanced, sustainable path.
---
### Putting it all together 🧩
• **If you want index-like returns with minimal drag:** VOO’s 0.04 % fee keeps more of each dollar of market upside in your pocket.
• **If you’re hunting for factor alpha or hedging:** Consider niche funds like SPYM (0.02 %) for ultra-low cost or leveraged bear ETFs for tactical trades.
• **If you’re new to ETFs:** VOO’s massive liquidity and decades-long track record make it a comforting “set-and-forget” cornerstone.
---
**Curious next step 🤔:**
Given VOO’s sweet spot of cost and performance, how might you blend it with a sector-specific ETF to fine-tune your risk—and still keep your overall fee bill whisper-quiet? 🎯💬