Data snapshot: August 24, 2026. Expense ratios below come from issuer pages or current prospectus figures and can change.
Original editorial illustration by Best ETF to Buy Now. The cards are conceptual and do not represent live fund prices.
Quick answer: which S&P 500 ETF is cheapest?
SPYM is the cheapest U.S.-listed, unleveraged S&P 500 ETF in this comparison at 0.02% per year. VOO and IVV each charge 0.03%. On a $10,000 balance, the difference between 0.02% and 0.03% is about $1 a year. For most long-term investors, taxes, trading costs and broker features deserve more attention than one basis point.
Cheapest S&P 500 ETFs at a glance
| ETF | Expense ratio | Annual fund cost per $10,000 | Best fit |
|---|---|---|---|
| SPYM | 0.02% | About $2 | Lowest published fund fee |
| VOO | 0.03% | About $3 | Vanguard-focused buy-and-hold investor |
| IVV | 0.03% | About $3 | Core holding with deep liquidity |
| SPY | Check current prospectus | Varies | Active trading and options use |
The dollar examples apply the stated expense ratio to a constant $10,000 balance. Actual fees are deducted inside the fund, and the balance changes with the market.
1. SPYM: lowest-cost S&P 500 ETF by expense ratio
State Street lists the SPDR Portfolio S&P 500 ETF (SPYM) at 0.02%. The issuer says it was the lowest-cost fund among SPYM, SPY, IVV and VOO as of June 26, 2026. SPYM previously traded under the ticker SPLG, so older articles and brokerage histories may still use that symbol.
The fund follows the S&P 500. That means its return before expenses should remain close to other funds tracking the same index. A lower fee gives SPYM a small mathematical advantage, but one basis point is tiny: $10 annually on $100,000, assuming a constant balance.
Best for: a new long-term position where the lowest stated expense ratio is the deciding factor.
What can go wrong: selling an appreciated holding merely to save one basis point may create a tax bill far larger than years of fee savings.
2. VOO: one basis point more, still very cheap
Vanguard lists VOO at 0.03% as of April 28, 2026. It tracks the S&P 500 and is widely used as a large-cap U.S. core holding.
If you already own VOO, moving to SPYM solely because 0.02% is lower than 0.03% rarely changes the portfolio in a meaningful way. Compare the unrealized gain, account type and transaction mechanics first. Inside a tax-advantaged account, switching may be simpler; in a taxable account, capital-gains tax can dominate the calculation.
Read our S&P 500 ETF research page for the role these funds can play in a broader portfolio.
3. IVV: the same headline fee as VOO
BlackRock lists IVV at 0.03%. It also seeks to track the S&P 500, so the holdings and long-term return pattern should be close to VOO and SPYM before small differences in expenses, sampling, cash management and trading.
IVV makes sense when your broker, workplace account or existing portfolio already uses iShares funds. Brand preference is not an investment thesis, but operational simplicity has value.
4. SPY: built for liquidity, not the lowest annual fee
SPY is the oldest and most actively traded fund in this group. Its trading depth and options market can matter to institutions and active traders. A buy-and-hold investor making occasional purchases may not receive enough benefit from that liquidity to offset a higher ongoing fee.
Check State Street’s current SPY prospectus rather than relying on an old comparison. The right question is straightforward: are you paying for liquidity you actually use?
Does the lowest expense ratio produce the best result?
Not automatically. All four funds aim at the same index, but an investor experiences the market return after several small frictions:
- expense ratio and tracking difference;
- bid-ask spread at the time of purchase;
- taxes created by selling or distributing gains;
- broker support for recurring purchases and fractional shares;
- securities-lending and cash-management results inside the fund.
Tracking difference is especially useful. It shows how the fund actually performed relative to its index after expenses and operating effects. A prospectus fee is known in advance; tracking difference is observed afterward.
A fee difference in dollars
| Portfolio balance | 0.02% annual cost | 0.03% annual cost | Difference |
|---|---|---|---|
| $10,000 | $2 | $3 | $1 |
| $100,000 | $20 | $30 | $10 |
| $500,000 | $100 | $150 | $50 |
This simple calculation explains why “cheapest” can become a distraction. Saving $10 a year on $100,000 is useful, but realizing thousands of dollars of taxable gains to achieve it is usually poor arithmetic.
How we evaluated the funds
We limited the main comparison to unleveraged U.S.-listed ETFs that passively track the S&P 500. We prioritized current issuer-reported expenses, index exposure, trading use case and the practical cost of switching. We did not rank funds by recent return because funds tracking the same index should be compared over matching periods and after costs.
Investors deciding whether the S&P 500 is broad enough can also read our VOO vs. VTI comparison and three-fund portfolio guide.
Bottom line
SPYM has the lowest published expense ratio in this group. VOO and IVV cost only one basis point more and remain sensible long-term choices. SPY earns its place when trading liquidity matters. If you already own one of these funds, calculate the tax and trading consequences before changing a sound portfolio to save $1 per $10,000 each year.
Educational content, not personalized investment, tax or legal advice. Verify current fees and fund documents with the issuer before trading.