Choose This if you are a Boring, Buy & Hold Investor!

Sriram Balasubramanian
4 min readOct 26, 2021

Compounding is not just for Investments for also for your expenses. Read to know more on why I chose VOO instead of SPY in my core portfolio.

First-time or new investors debate over choosing S&P 500 ETF, either SPY or VOO. Congratulations on your decision to invest in the S&P 500 index, and it is the wisest thing to do. If you haven't read my ultimate soccer team portfolio, here is the complete list you can read anytime — Access here.

Many have liked my Soccer team portfolio idea, and it gives me a lot of motivation to continue writing portfolio updates. More importantly, my readers and I grow wealthy together. The best part about the soccer team portfolio is that:

  1. It is an ultra-lazy portfolio
  2. Aimed to beat inflation
  3. Long-term wealth creation
  4. Ultra-passive,
  5. Low-churn,
  6. Well-diversified,
  7. All-weather portfolio.

The chances of anyone losing your hard-earned money is almost nil, provided you stay invested forever!

If you have read about my selection of the first player on my soccer team, you must have noticed that I have picked VOO instead of SPY.

Note that:

VOO — is Vanguard S&P 500 ETF

SPY — is SPDR S&P 500 ETF

One may choose SPY or VOO, nothing wrong with either of the ETFs. Let's dig a bit into reasoning my choice of VOO instead of SPY. Investing in VOO, you may get astonished by the difference in returns. VOO offers about $20,000 more for $100,000 invested for over 30 years.

SPY vs. VOO — The Ultimate Verdict:

Many investors think both SPY & VOO are the same. While it is true that they both track the S&P 500 index, some minor differences lead to marginal better returns.

Source: etf.com

Expense Ratio: VOO has an expense ratio of 0.03%, whereas SPY is about 0.0945%. While many may say the expense ratio is too small to talk about → for a long-term passive

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Sriram Balasubramanian

Building WIBE to enable people to trade stocks to generate consistent cash flow. I enjoy writing on Wealth of all types!