VOO pays a slightly higher dividend yield than SPLG in most years, but the difference is usually less than 0.2%

VOO (Vanguard S&P 500 ETF) and SPLG (SPDR Portfolio S&P 500 ETF) track the same index — the S&P 500 — so they hold nearly identical stocks. Because they own the same companies, their dividend yields move together and stay very close. VOO's yield has typically run between 1.4% and 1.8% over the past few years, while SPLG's has been in the same range, often within 0.1 or 0.2 percentage points.

The small differences come down to expense ratios and how each fund reinvests cash. VOO charges 0.03% annually; SPLG charges 0.03% as well. When one fund's yield edges ahead of the other, it is usually because of timing — when dividends are paid out and reinvested — rather than any structural advantage. Over a full year, the difference in what you actually receive is negligible for most investors.

Key Takeaways

  • VOO and SPLG track the same index and hold the same stocks, so their dividend yields are nearly identical most of the time.
  • Both funds charge 0.03% in annual expenses, so neither has a cost advantage that would meaningfully affect your dividend income.
  • The yield difference between the two rarely exceeds 0.2%, and it shifts depending on the timing of dividend payments and reinvestment.
  • Your choice between them should rest on fund size, account type, and which brokerage offers lower trading costs, not on dividend yield.

Why the yields are so similar

Both funds own the 500 companies in the S&P 500 in the same proportions. When Apple, Microsoft, or Coca-Cola pays a dividend, both VOO and SPLG receive it. The fund managers then distribute that cash to shareholders or reinvest it automatically, depending on your account settings.

The only meaningful difference in cost is the expense ratio, and both charge the same 0.03% per year. This is one of the lowest fees in the industry. A difference in fees would show up as a difference in yield, but since they are equal, neither fund has an advantage here.

When one fund shows a higher yield than the other

On any given day, you might see VOO quoted at 1.6% and SPLG at 1.5%, or vice versa. This happens because of the timing of dividend distributions. The S&P 500 companies pay dividends throughout the year, not all at once. If VOO distributed a large dividend payment to shareholders yesterday and SPLG will distribute the same payment tomorrow, VOO's yield will look higher for that one day.

Over a full calendar year, these timing differences average out. A dividend yield quoted on a financial website is a snapshot — it shows the most recent payment annualized, not a may provide of what you will receive. If you hold either fund for a year, the total dividends you collect will be nearly identical.

Which fund is larger and more liquid

VOO is the larger of the two, with assets over $500 billion. SPLG has roughly $100 billion. Size matters for liquidity — the ease of buying and selling shares — but both funds are large enough that you will have no trouble trading them on any major brokerage.

If you are buying and selling in small amounts or holding long-term, the size difference does not matter. If you are trading large blocks of shares, VOO's greater size means slightly tighter bid-ask spreads, which saves you a few cents per share. For dividend income, size is irrelevant.

How your brokerage affects which fund makes sense

Some brokerages offer commission-free trading on certain funds but charge for others. Fidelity, for example, offers commission-free trading on both VOO and SPLG. Vanguard brokerage customers pay no commission on VOO but may pay a small fee on SPLG. Charles Schwab offers commission-free trading on both.

If your brokerage charges a commission to buy or sell one fund but not the other, that fee will matter more to your returns than the tiny dividend yield difference. Check your brokerage's fund list before deciding. Over time, a $10 trading commission will cost you more than a 0.1% difference in yield.

Tax treatment is identical for both funds

Both VOO and SPLG are ETFs that hold the same stocks, so they generate the same types of income: may have access to dividends (taxed at favorable rates) and long-term capital gains. Neither fund has a tax advantage over the other. In a taxable account, your tax bill will be essentially the same whether you hold VOO or SPLG.

In a retirement account like a 401(k) or IRA, taxes do not apply to dividends or capital gains until you withdraw money, so the choice between these funds has no tax consequence at all.

What actually matters when choosing between them

Dividend yield should not be your deciding factor. The difference is too small to matter. Instead, consider these practical points: Does your brokerage charge a commission to buy one but not the other? Do you already own one of them in another account, and would consolidating make your portfolio easier to track? Is one fund offered in your 401(k) plan at work?

If none of those factors apply, either fund is a sound choice for long-term S&P 500 exposure. Pick one and stick with it. The cost of switching funds to chase a 0.1% yield difference will erase any gain you might have made.

Frequently Asked Questions

Does VOO pay dividends monthly or quarterly?

VOO distributes dividends quarterly, typically in March, June, September, and December. The exact dates vary because they depend on when the 500 companies in the index pay their dividends. You can set your account to receive cash or reinvest automatically.

Can I get a higher dividend yield by choosing a different S&P 500 fund?

No. All S&P 500 index funds hold the same stocks and pay nearly identical yields. IVV (iShares Core S&P 500 ETF) and RSP (Invesco S&P 500 Equal Weight ETF) are exceptions — RSP weights stocks differently and may have a different yield — but standard index funds like VOO, SPLG, and IVV will be within 0.1 or 0.2% of each other.

If I reinvest dividends, does it matter which fund I choose?

No. Reinvesting dividends means the cash buys more shares automatically. Over time, both VOO and SPLG will grow at nearly the same rate because they hold the same stocks. The fund you choose matters far less than staying invested and not trading frequently.

Why does SPLG sometimes show a higher yield than VOO?

Timing of dividend payments causes this. If SPLG distributed a large payment recently and VOO will distribute the same payment next week, SPLG's yield will look higher for a few days. Over a full year, the yields converge. Do not switch funds based on a temporary yield difference.

Should I hold both VOO and SPLG to get more dividends?

No. Holding both means you own the same 500 companies twice, which adds unnecessary complexity and trading costs without increasing your dividend income. Pick one fund and hold it.