Expense Ratio: VOO features an expense ratio of 0.03%, while SPLG offers a slightly lower rate at 0.02%. SPLG has strategically reduced its expense ratio to be more competitive with VOO. This reduction means an annual savings of $100 for every $1 million invested in the S&P 500 through SPLG compared to VOO.
Trading Volume and Liquidity: VOO typically exhibits higher trading volume than SPLG, which often results in better liquidity. This translates to narrower bid-ask spreads and generally more favorable pricing for transactions. However, for investors who are not engaging in frequent trading, such as those investing in S&P 500 index funds for the long term, this difference is unlikely to impact the decision between SPLG and VOO.
Dividend Yields: Both VOO and SPLG distribute dividends quarterly. Although the dividend schedule is similar, SPLG currently offers a slightly higher dividend yield at 1.37% compared to VOO’s 1.31%. This translates to an additional $600 in annual dividend income per $1 million invested through SPLG.
Expense Ratio: QQQ features an expense ratio of 0.20%, while QQQM offers a slightly lower rate at 0.15%. QQQM has strategically reduced its expense ratio to be more competitive with QQQ. This reduction means an annual savings of $500 for every $1 million invested in the NASDAQ index through QQQM compared to QQQ.
Trading Volume and Liquidity: QQQ typically exhibits 10x higher trading volume than QQQM, which often results in better liquidity. This translates to narrower bid-ask spreads and generally more favorable pricing for transactions. However, for investors who are not engaging in frequent trading, such as those investing in the NASDAQ index funds for the long term, this difference is unlikely to impact the decision between QQQM and QQQ.
Dividend Yields: Both QQQ and QQQM distribute dividends quarterly. Although the dividend schedule is similar, QQQM currently offers a slightly higher dividend yield at 0.62% compared to QQQ’s 0.57%. This translates to an additional $500 in annual dividend income per $1 million invested through QQQM.
<aside> 🫙 Keep in mind that the specifics of these funds can evolve. Both SPLG and VOO, or QQQM and QQQ represent solid investment options.
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