What is the primary difference in strategy between SPLV and VOO?

VOO tracks the S&P 500 index, offering broad exposure to U.S. large-cap companies. In contrast, SPLV follows a low-volatility strategy, selecting stocks from the S&P 500 that have historically exhibited lower price fluctuations. While VOO aims to match the market's overall return, SPLV focuses on defensive characteristics to potentially reduce risk during downturns. The two funds serve different investor preferences regarding market participation versus risk management. Understanding this strategic divergence is crucial for interpreting how each fund might behave in various market conditions. This distinction highlights the trade-off between capturing full market growth and seeking stability through reduced volatility exposure.

How do expense ratios impact the long-term value of these ETFs?

VOO has an expense ratio of 0.03%, whereas SPLV charges 0.25%. This difference of 0.22 percentage points means VOO is significantly more cost-efficient. Over time, higher fees can compound, reducing the net return an investor receives compared to the underlying assets' performance. For example, on a $10,000 investment, SPLV costs $25 annually versus $3 for VOO. While this may seem small yearly, the gap widens over decades. Lower costs are generally advantageous for long-term holders, but investors should also consider the potential trade-offs in risk and return associated with the specific strategy behind each fund.

What does 'low volatility' mean in the context of SPLV?

Low volatility refers to a strategy that selects stocks with smaller price swings compared to the broader market. SPLV uses this approach to potentially cushion losses during market downturns. However, this defensive nature often means these stocks may not rise as quickly during strong bull markets. The fund holds securities from sectors perceived as stable, such as utilities and consumer staples. By prioritising price stability over aggressive growth, SPLV aims to provide a smoother investment experience. Investors should recognise that while risk is reduced, the potential for maximum capital appreciation might also be lower compared to a total market index fund like VOO.

How do the top holdings of SPLV and VOO differ in composition?

There are no shared top-10 holdings between the two funds, indicating distinct investment profiles. VOO's largest positions include major technology and growth companies like NVDA, AAPL, and MSFT. In contrast, SPLV's top holdings are concentrated in utilities and stable consumer brands, such as FE, DUK, and WEC. This divergence reflects their respective strategies: VOO captures the market's leading growth sectors, while SPLV seeks safety in defensive industries. The lack of overlap means their performance drivers are quite different, with VOO tied to tech sector momentum and SPLV linked to the stability of regulated industries and essential goods.

Which fund offers a higher dividend yield and why might this matter?

SPLV provides a dividend yield of 2.28%, significantly higher than VOO's 1.03%. This difference arises because low-volatility stocks often have more predictable cash flows and are willing to distribute more to shareholders. Investors seeking regular income may find SPLV's higher yield attractive. However, a higher yield is not always superior; it can sometimes reflect a lack of growth opportunities. VOO's lower yield is typical for growth-oriented companies that reinvest earnings. The choice depends on whether an investor prioritises current income generation or potential capital appreciation, with SPLV leaning towards the former and VOO towards the latter.

Is concentration risk present in VOO's top holdings?

Yes, VOO exhibits notable concentration in its largest holdings. The top three stocks—NVDA, AAPL, and MSFT—account for a substantial portion of the fund's assets. This means the fund's performance is heavily influenced by the technology sector. If these specific companies underperform, the entire fund could lag behind the broader market expectations. In contrast, SPLV's top holdings are more evenly weighted, with no single stock exceeding 1.41% of the portfolio. Investors in VOO should be aware that while it offers broad market exposure, its effective risk is skewed towards large-cap tech leaders, unlike the more evenly distributed defensive profile of SPLV.

How might these funds perform differently during a market downturn?

During a market decline, SPLV is designed to fall less than the broader index due to its selection of low-volatility stocks. Historically, defensive sectors like utilities and consumer staples tend to be more resilient when economic uncertainty rises. Conversely, VOO tracks the full S&P 500, so its value will likely drop in tandem with the market, including sensitive tech stocks. While SPLV may offer better downside protection in the short term, VOO could recover faster in a rebound if driven by growth sectors. Investors seeking stability during volatility might prefer SPLV's structure, whereas those accepting market risk for potential higher returns might stick with VOO.

Do SPLV and VOO cover the same market segment?

Both funds draw from the S&P 500 universe, which represents U.S. large-cap equities, but they target different styles. VOO is classified as Large Blend, capturing a mix of growth and value stocks across the index. SPLV is classified as Large Value, focusing on companies with lower volatility, often associated with value characteristics. While the underlying pool of stocks is similar, the selection criteria result in distinct sector exposures. VOO is overweight in technology and communication services, while SPLV is heavier in utilities and consumer staples. This means they are not interchangeable despite both targeting large-cap U.S. markets.

What are the liquidity considerations for these ETFs?

VOO manages $1.08 trillion in net assets, indicating extremely high liquidity and tight bid-ask spreads due to massive trading volumes. SPLV has $7.2 billion in assets, which is still substantial but significantly smaller. High liquidity means VOO can be bought and sold with minimal impact on the price, making it ideal for large transactions or frequent trading. While SPLV is liquid enough for most retail investors, its smaller size might result in slightly wider spreads during periods of market stress. For most long-term holders, both offer adequate liquidity, but VOO's scale provides an edge in ease of execution and cost certainty during trades.

How should a beginner interpret the inception dates of these funds?

VOO was launched on Sep 7, 2010, shortly after SPLV on May 5, 2011. Both funds have been in existence for over a decade, providing a reasonable track record for analysis. However, inception dates alone do not determine current performance. Investors should look at how each fund behaved through various market cycles since their launch. The fact that both are established funds adds to their credibility. Newer funds might have limited history, but here, the similar timeframe means both have experienced bull and bear markets, allowing for a fair comparison of their long-term strategic effectiveness based on actual historical data.

What disclaimer applies to this ETF comparison?

This content is for educational purposes only and does not constitute financial advice. The data provided reflects information as of September 22, 2026, and market conditions can change rapidly. Past performance of SPLV or VOO is not indicative of future results. Investors should consider their own financial situation, risk tolerance, and investment goals before making any decisions. It is recommended to consult with a qualified financial advisor for personalised guidance. The comparison highlights structural differences in fees, holdings, and strategies to help beginners understand how to evaluate exchange-traded funds, not to recommend one over the other.

SPLV vs VOO

Two funds, one decision: we compare cost, performance and what each ETF actually holds in September 2026.

Compare SPLV and VOO on fees, holdings and dividends. VOO tracks the S&P 500; SPLV focuses on low volatility. Data: 0.03% vs 0.25% fees, 1.03% vs 2.28% yields, $1.08tn vs $7.2bn assets. Educational content, not financial advice.

Compare SPLV and VOO on fees, holdings and dividends. VOO tracks the S&P 500; SPLV focuses on low volatility. Data: 0.03% vs 0.25% fees, 1.03% vs 2.28% yields, $1.08tn vs $7.2bn assets. Educational co...

Fund Snapshot

Key Fund Metrics

SPLV

Metric

VOO

0.25%

Expense Ratio

0.03%

2.28%

Dividend Yield

1.03%

$7.19B

Net Assets

$1.08T

107

Holdings

516

May 5, 2011

Inception Date

Sep 7, 2010

–

Index Tracked

–

Large Value

Fund Category

Large Blend

VOO costs about $22.00 less per year for every $10,000 invested.

Shared Top Holdings

These funds do not share any of their top holdings.

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Investment Analysis

SPLV

Pros

SPLV offers a higher dividend yield of 2.28%, potentially enhancing income generation for investors.
It focuses on low-volatility stocks, which may reduce portfolio risk during market downturns.
SPLV provides exposure to defensive sectors, such as utilities and consumer staples, enhancing stability.

Considerations

With an expense ratio of 0.25%, SPLV is more costly compared to cheaper broad market alternatives.
Its top holdings are less diversified compared to broader index ETFs, with smaller weightings.
The fund’s low-volatility strategy may underperform in strongly rising bull markets.

VOO

Pros

VOO has a significantly lower expense ratio of 0.03%, making it highly cost-effective.
It provides diversified exposure to the U.S. large-cap market, encompassing a wide range of sectors.
With net assets exceeding $1.08 trillion, VOO ensures excellent liquidity and trading volume.

Considerations

The dividend yield is lower at 1.03%, which might not suit income-focused investors.
It has high concentration in top technology holdings, increasing reliance on sector performance.
The fund’s large market-cap focus may exclude small- and mid-cap growth opportunities.

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About SPLV and VOO

SPLV (SPLV)

SPLV (Invesco S&P 500® Low Volatility ETF) is an exchange-traded fund that seeks to offer S&P 500 exposure with reduced price swings. The fund tracks a rules-based index that selects stocks from the S&P 500 with lower historical volatility and weights them to favour more stable names. Investors often consider SPLV when they want equity market participation but hope for a smoother ride compared with the full S&P 500. It can act as a defensive sleeve within a diversified portfolio, but it is still subject to market risk — returns can fall and are not guaranteed. SPLV’s strategy may underperform in strong bull markets where higher-volatility stocks lead, and its sector and factor tilts can differ from the broad market. Suitable for investors seeking lower short‑term volatility and prepared for equity risk over the medium to long term, it is educational to compare fees, tracking error and holdings before investing.

VOO (VOO)

VOO is Vanguard’s exchange-traded fund designed to track the S&P 500 Index, offering broad exposure to about 500 of the largest publicly traded US companies. It aims to replicate the index’s performance minus fees by holding the same stocks in similar proportions, making it a straightforward, passive way to access large‑cap US equities. Investors commonly use VOO as a core holding for long‑term growth or as a simple building block in a diversified portfolio. It typically offers high liquidity and regular dividend distributions from underlying companies. As with any equity investment, VOO’s value can rise or fall with the market, and past performance is not a guide to future returns. Fees, trading costs and potential tracking error reduce returns slightly. This information is general and educational only and not personalised financial advice — consider your own circumstances or speak to a qualified adviser before investing.

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