Cryptocurrency Q&A
Is VOO better than SPY?
Is VOO better than SPY?
mia_rose_lawyer
Wed Sep 18 2024
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5 answers
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Could you please explain why some investors prefer VOO over SPY, and what factors should be considered when making a decision between the two? Both of them track the S&P 500 index, but are there any notable differences in terms of expense ratios, trading volume, or overall performance that might sway an investor's decision? Additionally, how does the performance of these ETFs compare to other similar products in the market?
5 answers
Claudio
Fri Sep 20 2024
The heightened liquidity of SPY has numerous implications for investors. Firstly, it makes SPY a more attractive option for traders who require quick execution of their orders.
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BlockchainBaron
Fri Sep 20 2024
The ETFs being discussed, despite each holding approximately half a trillion dollars in assets, exhibit significant disparities in liquidity.
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isabella_oliver_musician
Fri Sep 20 2024
VOO, one of the ETFs, sees an average daily trading volume of approximately $2 billion worth of shares. This figure, while substantial, pales in comparison to its counterpart.
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Nicola
Fri Sep 20 2024
In contrast, SPY trades over $25 billion worth of shares on an average day. This staggering amount underscores the remarkable liquidity that SPY possesses.
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ShintoBlessed
Thu Sep 19 2024
Additionally, the increased liquidity of SPY also translates into lower trading costs for investors. The higher trading volume allows for tighter bid-ask spreads, resulting in reduced transaction costs.
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