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Message
Should VOO be the default S&P index?
Posted on 6/3/25 at 4:57 pm
Posted on 6/3/25 at 4:57 pm
Seems everywhere you look, VOO is trumpeted as the ETF for an S&P index fund in a retirement portfolio. But should it be?
VOO
P/E-26
Yield-1.29%
Fee-.03
1yr-12.06
3yr-12.14
5yr-15.57
What about SPMO? This fund seems to be clearly a better option. What am I missing?
SPMO
P/E-29.62
Yield-.49%
Fee-.13
1yr-25.39
3yr-20.70
5yr-20.24
Both very low fees, performance SPMO crushes VOO. VOO has a better dividend but not even close to closing the gap in performance. Both are tech heavy but SPMO is has large positions in retail with WMT and COST. VOO’s top holding is AAPL, while SPMO doesn’t have AAPL in its top ten holdings.
I think SPMO is the better hold.
VOO
P/E-26
Yield-1.29%
Fee-.03
1yr-12.06
3yr-12.14
5yr-15.57
What about SPMO? This fund seems to be clearly a better option. What am I missing?
SPMO
P/E-29.62
Yield-.49%
Fee-.13
1yr-25.39
3yr-20.70
5yr-20.24
Both very low fees, performance SPMO crushes VOO. VOO has a better dividend but not even close to closing the gap in performance. Both are tech heavy but SPMO is has large positions in retail with WMT and COST. VOO’s top holding is AAPL, while SPMO doesn’t have AAPL in its top ten holdings.
I think SPMO is the better hold.
8
Posted on 6/3/25 at 5:04 pm to mmmmmbeeer
I buy SPLG instead of VOO due to the lower expense ratio
Posted on 6/3/25 at 5:10 pm to tigercross
quote:
I buy SPLG instead of VOO due to the lower expense ratio
I guess that where I get lost….you’re saving 0.11% on fees but giving up 8-10% in performance.
Does an average person really notice the difference in fees when comparing 0.13% and 0.02%?
Not criticizing your choice…you know your situation better than I.
Posted on 6/3/25 at 5:12 pm to mmmmmbeeer
I’m no expert, but in the long run, shouldn’t most ETFs of a similar nature tend towards equal rates of return? If one is consistently outperforming, shouldn’t market forces kick in to equalize things?
Posted on 6/3/25 at 5:28 pm to mmmmmbeeer
quote:
I guess that where I get lost….you’re saving 0.11% on fees but giving up 8-10% in performance
Where are you getting your data? SPLG is 1 bp better YTD and 15 bp better over the last 5 years. Can’t go back further than 5 years since SPLG was not indexed to s&p 500 prior to 2020.
LINK
LINK
This post was edited on 6/3/25 at 5:30 pm
Posted on 6/3/25 at 6:14 pm to mmmmmbeeer
Well, SPMO is not an S&P index fund for starters, it is more volatile and benefits during strong bull runs.
If you’re interested in a higher risk version of S&P, this seems like a good one, or a Nasdaq one.
VOO matches the S&P point for point, and thus is the better hold for me. I actually use Fidelity’s FXAIX for my retirement funds, which has a slightly lower cost than VOO
If you’re interested in a higher risk version of S&P, this seems like a good one, or a Nasdaq one.
VOO matches the S&P point for point, and thus is the better hold for me. I actually use Fidelity’s FXAIX for my retirement funds, which has a slightly lower cost than VOO
Posted on 6/3/25 at 6:20 pm to mmmmmbeeer
SPMO isnt an S&P500 index fund (capitalization weighted). Rather, it tracks the S&P500 Momentum Index. The S&P 500 Momentum Index is a factor-based index that zeroes in on S&P 500 stocks with high momentum (strong recent performance).
Same pool of companies (S&P500) but entirely different weighting strategies. ETA: SPMO doesnt even hold the entire 500 just 100 selected holdings.
Apples to oranges. Interesting, to consider another approach but not sure if it's back tested as I've never heard anyone suggest this momentum index before. Basically looks like it is betting on recent strong performers.
I actually prefer the lower dividend in taxable brokerage. Wonder if there is a lower expense ratio version. Thats high for passively tracking an index.
Same pool of companies (S&P500) but entirely different weighting strategies. ETA: SPMO doesnt even hold the entire 500 just 100 selected holdings.
Apples to oranges. Interesting, to consider another approach but not sure if it's back tested as I've never heard anyone suggest this momentum index before. Basically looks like it is betting on recent strong performers.
I actually prefer the lower dividend in taxable brokerage. Wonder if there is a lower expense ratio version. Thats high for passively tracking an index.
This post was edited on 6/3/25 at 7:33 pm
Posted on 6/3/25 at 6:41 pm to mmmmmbeeer
SPMO also much more concentrated. Top 10 holdings account for ~54% of holdings vs VOO 34%.
This post was edited on 6/3/25 at 6:51 pm
Posted on 6/3/25 at 10:10 pm to mmmmmbeeer
so is SPY
who cares??
who cares??
Posted on 6/3/25 at 10:37 pm to Fat Bastard
I have Fidelitys FXAIX and it’s basically the same exact thing but expense ratio is .015%.
Posted on 6/3/25 at 10:44 pm to dallastiger55
damn.
VOO is .03.
SPY is .09
VOO is .03.
SPY is .09
Posted on 6/4/25 at 8:07 am to AlteriorMotive
quote:
Well, SPMO is not an S&P index fund for starters, it is more volatile and benefits during strong bull runs.
Ahhh, thus the better returns. Pretty good reason for it not to be a great S&P index holding
Posted on 6/4/25 at 8:30 am to mmmmmbeeer
I've used Fidelity® 500 Index Fund (FXAIX) for years for mirroring the S&P 500 since my accounts are at Fidelity. Near mirror performances. Slightly less expenses.
Posted on 6/4/25 at 10:03 am to mmmmmbeeer
Sp500 funds are my largest position.
I started buying momentum funds within the past year. I like SPMO because it isn't as tech heavy as most of the other funds, including voo.
I don't think spmo did any worse than voo during the recent drop, and is now at all time high, whereas voo is still down a few points.
I'm 43 and shifting away from individual equities (and still not even thinking about bonds). I'll continue buying voo, spmo and other growth funds (MGK, schg)
I started buying momentum funds within the past year. I like SPMO because it isn't as tech heavy as most of the other funds, including voo.
I don't think spmo did any worse than voo during the recent drop, and is now at all time high, whereas voo is still down a few points.
I'm 43 and shifting away from individual equities (and still not even thinking about bonds). I'll continue buying voo, spmo and other growth funds (MGK, schg)
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