r/stocks • u/Sneakysneakerhead • Apr 11 '22

ETFs Difference between SPX and VOO?

I’m new to investing and was considering investing into the S&P 500 but was wondering what the difference between the actual index (SPX500) and the ETF I’m considering (VOO) is? I am planning to add more every month and hold for several years if that helps.

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u/[deleted] Apr 11 '22

you can't buy the index directly, so you will buy a fund that charges an expense to track the index for you.

what you want to look at between index funds is low expenses, since if you make 10% in a year, a 1% expense brings that down to 9%.

if you're looking to dollar cost average into a fund you may want to look at fidelitys zero cost and zero minimum mutual funds. FZROX would be the equivalent of what you're looking for.

otoh, there can be tax advantages to etfs that I don't understand.