SWPPX vs VOO: Best S&P 500 Fund

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

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 daily, like a typical mutual fund.

SWPPX

• Tracks the S&P 500 Index
• Expense Ratio: 0.02%
• No Minimum Investment
• Holds 508 Stocks
• Is a Mutual Fund

VOO

• Tracks the S&P 500 Index
• Expense Ratio: 0.03%
• No Minimum 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 12.56% per year.  The total return for SWPPX over the last 10 years is 12.56%.

No difference!

Here is a chart illustrating this:

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

The main difference between SWPPX and VOO is that VOO is an ETF, and SWPPX is a mutual fund.  Schwab provides SWPPX, while Vanguard provides VOO. 

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 vs VOO Similarities

Though both SWPPX and VOO have distinctive features that make them stand out, they also have some similarities; they include:

• In the last 3 years, both SWPPX and VOO have had similar returns
• Both funds are the same because they track the S&P 500 Index Fund using a computer algorithm
• SWPPX and VOO can permit automatic withdrawals and investments
• Both funds own the same allocation of stocks
• Both funds have a mutual lack of fees, and they both hold a large number of different stocks

 

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 Performance

Schwab’s 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 Top 10 Holdings

Schwab’s SWPPX holdings include Microsoft, Apple, Amazon, Alphabet, and Tesla and over 500 other stocks.

 

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 was founded by Vanguard, an investment company that operates with lower costs to increase returns for investors.

It also invests in domestic equity and is considered a large blend fund.

One thing to note is that VOO can be offered on several websites and investment apps like M1 Finance.  (Use this link for $50 when you open a new account)

VOO has over $829 billion in fund total net assets.

Pros

• VOO Includes All 500 Stocks In The S&P 500
• Expense Ratio Of 0.03%
• A Beta Of 1.00 Means VOO Tracks The S&P 500 Perfectly
• Quarterly Dividends
• VOO Is An Exchange-Traded Fund (ETF)

Cons

• Intraday Trading (Can Encourage Day Trading)
• No Automatic Investment Feature (Unless You Use M1 Finance)

 

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 (Blue)                S&P 500 (Yellow)

 

VOO Top 10 Holdings

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

 

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 critical 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:

• VOO vs VOOG
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• FXAIX vs VOO
• VUG vs VOO
• VYM vs VOO
• SWTSX vs SWPPX
• FNILX vs VOO

 

My Winner: VOO

My winner is VOO based on being able to invest in it in various 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.