From Nasdaq: 2025-04-30 11:15:00

The U.S. stock market saw a strong rebound last week with the S&P 500 and Dow Jones marking their longest winning streak since November and July, respectively. The rally was supported by easing trade tensions and positive corporate earnings reports.

The Trump administration has softened its stance on tariffs and signed an executive order to ease tariff burdens on the auto industry. Negotiations are ongoing with various countries, leading to a more diplomatic approach.

Vanguard S&P 500 ETF (VOO) saw an inflow of $756.8 million, pushing its AUM to around $600 billion. Meanwhile, SPDR S&P 500 ETF Trust (SPY) experienced outflows of $2.4 billion, reducing its AUM to $571.6 billion. iShares Core S&P 500 ETF (IVV) also saw outflows after a solid withdrawal last week.

SPY has a lower expense ratio of 0.09% with high trading volume, while VOO costs 3 bps annually. VOO has seen growing assets of $30.8 billion in the past three months, while SPY faced outflows of $5.5 billion in the same period.

VOO’s open-end structure and in-kind creation/redemption mechanisms make it more tax-efficient compared to SPY. VOO can reinvest dividends, while SPY holds them in cash. VOO can lend out shares to earn extra money.

For long-term investors, VOO with a Zacks ETF Rank #1 (Strong Buy) is preferable due to its lower expense ratio. SPY, with a Zacks ETF Rank #2 (Buy), may be favored by traders or institutional investors for liquidity and low spreads.



Read more at Nasdaq: S&P 500 on a Winning Streak Since November: VOO vs. SPY ETF