Large Cap Funds Cheaper Than VOO

One You Know & One You Don't 👀

For years, VOO and SPY have dominated the S&P 500 landscape, but two new(er)comers are changing the game.

Consider these 2 exchange-traded funds (ETFs) for cheaper options for Large Cap Exposure:

1. SPDR Portfolio S&P 500 ETF SPLG 0.00%↑

SPLG holds the same 500 stocks as SPY and VOO, providing broad exposure to the US large-cap market, as they both track the same S&P 500 Index.

Here's where SPLG truly stands out:

• SPLG: 0.02% expense ratio

• SPY: 0.0945% expense ratio

• VOO: 0.03% expense ratio

That's right; SPLG offers identical S&P 500 exposure at a fraction of the cost.

Interestingly, SPLG and SPY share the same parent company, State Street. So, why create another ETF?

• SPY is the world’s most traded ETF — trading $38.3 billion a day, on average, which makes it more suitable for short term trading

• SPLG, introduced in 2005, benefits from newer, more efficient ETF structure, and is ideal for long term buy-and-hold investing

2. BNY Mellon US Large Cap Core Equity ETF BKLC 0.00%↑

First off, who is BNY Mellon? It is the world's largest custodian bank and securities services company, with $2 trillion in AUM as of June 2024, and is one of the oldest banks in the US (BNY).

BNY Mellon’s BKLC stands out with its unprecedented zero percent expense ratio, making it a rare find among ETFs.

BKLC tracks the Solactive GBS United States 500 Index, not the S&P 500, although they are nearly identical.

What’s the difference?

1. Market capitalization calculation: Solactive uses free-float market capitalization, while S&P 500 uses total market capitalization.

2. Liquidity requirements: Solactive has more stringent liquidity criteria.

3. Public float requirement: S&P 500 has a 50% public float requirement, while Solactive does not.

The Solactive GBS United States 500 Index and S&P 500 Index exhibit subtle differences due to distinct selection criteria. Their differing approaches may lead to variations in constituents and minor performance discrepancies.

Since inception in April 2020, it has slightly outperformed SPY by 2%.

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Happy investing!

If you are interested in viewing my live ETF portfolio, download Blossom Social here, and follow my profile, etf.investments 🤓 (Only available in the US and Canada)

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