You are currently viewing SWPPX vs VOO: Best S&P 500 Fund

SWPPX vs VOO: Best S&P 500 Fund

  • Reading time:4 mins read

We Compare SWPPX vs VOO:

Schwab® S&P 500 Index Fund (SWPPX) vs Vanguard S&P 500 ETF (VOO)

Both of these funds track the S&P 500 Index.  However, VOO is an Exchange-traded fund (ETF) and SWPPX is a Mutual Fund.

SWPPX vs VOO Graphic

SWPPX vs VOO

The main difference between SWPPX and VOO is VOO is an Exchange-Traded Fund (ETF) and SWPPX is a Mutual Fund.  Another big difference is VOO is a Vanguard fund while SWPPX is a Schwab fund.

VOO is an Exchange Traded Fund (ETF)

SWPPX is a Mutual Fund

Here you can see a more detailed comparison of an ETF vs a Mutual Fund.

Since VOO is an ETF it trades all day while SWPPX only trades once a day like a typical mutual fund.

SWPPX:

  • Tracks the performance of the S&P 500 Index
  • Has an expense ratio of 0.02%
  • No minimum initial investment
  • Holds 508 stocks
  • Is a mutual fund

VOO:

  • Tracks the performance of the S&P 500 Index
  • Has an expense ratio of 0.03%
  • No minimum initial investment
  • Holds 508 stocks
  • Is an ETF
  • Mutual fund equivalent (VFIAX)

 

SWPPX vs VOO Performance

SWPPX and VOO have had the same performance over the last 10 years.  This is because they both track the same index (S&P 500 index).

The total return for VOO over the last 10 years is 16.1% per year.  The total return for SWPPX over the last 10 years is 16.1%.  No difference!

Here is a chart illustrating this:

SWPPX vs VOO Performance

VOO (Blue)                S&P 500 (Yellow)

Similarities between SWPPX and VOO:

  • Low Expense Ratios (0.02% vs 0.03%)
  • Tracks The S&P 500 Index
  • The Same Number Of Holdings

 

SWPPX and VOO Differences

SWPPX vs VOO primarily differs in that VOO is an ETF and SWPPX is a mutual fund.  Schwab provides SWPPX.  VOO is provided by Vanguard. 

VOO is easily accessible through investment platforms like Vanguard, M1 Finance, or Robinhood.

SWPPX is available commission-free on the Schwab platform.

Also, SWPPX pays a dividend annually vs VOO which pays quarterly.

Differences between SWPPX and VOO:

  • The Type Of Fund (ETF vs Mutual Fund)
  • Expense Ratio (0.02% vs 0.03%)
  • Where You Can Buy The Fund
  • Dividend Payout

 

SWPPX Profile

  • Fund Inception: 1997
  • Expense Ratio: 0.02%
  • Number Of Stocks: 508
  • Mutual Fund
  • Annual Dividend

 

Schwab® S&P 500 Index Fund (SWPPX) aims to track the S&P 500 index.  Most investors in SWPPX should purchase shares through the Schwab portal to avoid commissions.

SWPPX has a few ETF alternatives: SCHV and SCHX.

SWPPX Top 10 Holdings

SWPPX Top 10 Holdings

Schwab’s SWPPX holdings are made up of Microsoft, Apple, Amazon, Alphabet, and Tesla but also over 500 other stocks.

SWPPX Performance

SWPPX aims to mimic the returns of the S&P 500 index.  Therefore, SWPPX and the S&P 500 will always have the same returns.

SWPPX Performance

 

 

VOO Profile

  • Fund Inception: 2010
  • Expense Ratio: 0.03%
  • Number Of Stocks: 508
  • Exchange-Traded Fund (ETF)
  • Quarterly Dividend

 

Vanguard S&P 500 ETF (VOO) is a very popular ETF that tracks the S&P 500 index.  Only SPY is more popular as an investment to track the S&P 500.  VOO has over $829.0 billion in fund total net assets.

VOO Top 10 Holdings

VOO Top 10 Holdings

Vanguard’s VOO is largely made up of Microsoft, Apple, Alphabet, Amazon, and Tesla but also provides exposure to over 500 other stocks.

VOO Performance

Vanguard’s VOO aims to have the same performance returns as the S&P 500 index.  Therefore, VOO and the S&P 500 should always closely overlap.

VOO Performance

VOO (Blue)                S&P 500 (Yellow)

 

Which is Better SWPPX or VOO?

SWPPX and VOO are identical in performance.  SWPPX offers exposure to the S&P 500 at a lower expense ratio of 0.02%.  The issue with SWPPX is if you are not a Schwab investor, you will have to pay commissions to purchase SWPPX. 

VOO on the other hand is available in many ways commission-free.  The way I purchase VOO commission-free is with M1 Finance.

It’s very important investors purchase SWPPX or VOO commission-free.  Fees can take away from your portfolio returns and compound over time.

SWPPX and VOO will perform the same over the next 10 years.  The expense ratio isn’t a significant difference.

That’s why I give the edge to VOO.

Similar Comparisons:

 

My Winner: VOO

My winner is VOO based on being able to invest in it in a variety of ways.  I am also confident Vanguard will continue to offer low-cost investment options.

You might also want to compare VOO to its institutional equivalent VIIX.

 


Disclaimer
This post may have affiliate links, which means I may receive commissions if you choose to purchase through links I provide (at no extra cost to you). Thank you for supporting the work I put into this site!

This information is my opinion and is for information purposes only. It is not intended to be investment advice. Seek a duly licensed professional for investment advice.
Barista FIRE: Everything You Need T... x