SPYX or VOO: Weighing a Fossil Fuel-Free S&P 500 ETF Against the Full Index

Key Takeaways

• SPYX tracks the S&P 500 Fossil Fuel Reserves Free Index, excluding companies that own fossil fuel reserves, while VOO tracks the complete S&P 500 Index with no exclusions.
• Both funds are market-capitalization-weighted and share a nearly identical mega-cap technology core, led by NVDA, AAPL, and MSFT.
• The cost gap is substantial: VOO charges a 0.03% expense ratio, versus 0.20% for SPYX, a meaningful difference for long-term compounding.
• Energy exposure diverges sharply, with VOO holding roughly 3.4% in energy versus about 1.2% for SPYX, making SPYX a cleaner thematic vehicle.
• VOO offers far deeper liquidity and scale, with roughly $1 trillion in assets under management (AUM, the total market value of fund assets) versus about $2.8 billion for SPYX.
• Tickeron AI Verdict: VOO — favored for its cost efficiency, diversification breadth, and institutional-grade liquidity.

Setting the Scene

SPYX and VOO occupy an interesting spot in the ETF space. Both are passively managed, market-cap-weighted funds built around the S&P 500, and both deliver heavy exposure to the same leading technology and mega-cap names. At the same time, they pursue different goals: VOO provides straightforward exposure to the full index, while SPYX applies an environmental filter that removes companies owning fossil fuel reserves. For investors choosing between broad market representation and a sustainability-focused approach, the decision often comes down to whether that screen justifies the higher fee and lighter energy weighting. This comparison looks at the structural differences, sector allocations, performance patterns, and how each fits in the current environment.

A Closer Look at SPYX

SPYX aims to follow the S&P 500 Fossil Fuel Reserves Free Index, which screens out firms that hold fossil fuel reserves and effectively removes traditional energy producers. The fund holds about 490 stocks and carries a 0.20% net expense ratio. Its largest positions include NVDA, AAPL, MSFT, AMZN, and GOOGL, with AVGO, META, MU, and TSLA also prominent. Information technology makes up roughly 38–39% of the portfolio, followed by financials near 12.5%, communication services around 10%, consumer discretionary near 10%, and healthcare near 9.5%. Energy sits at just about 1.2% due to the screen. Because the exclusion affects relatively few names, SPYX tends to deliver returns that track the broader S&P 500 closely despite the thematic overlay. I also checked this using Tickeron’s AI Screener to see how the stock compares to others in the industry.

A Closer Look at VOO

VOO ranks among the largest ETFs globally and tracks the entire S&P 500 with no screens or exclusions. It holds roughly 500 large-cap U.S. stocks and charges a minimal 0.03% expense ratio. Its top holdings mirror those of SPYX almost exactly, led by NVDA, AAPL, MSFT, AMZN, and GOOGL, followed by AVGO, META, MU, and TSLA. Information technology accounts for about 40%, with financials near 11%, communication services around 10%, healthcare near 9.3%, and consumer discretionary about 8.7%. VOO keeps full energy exposure at approximately 3.4%, including major integrated oil producers. With roughly $1 trillion in AUM and strong daily volume, it provides excellent liquidity and narrow spreads.

The Market Context

Both ETFs are influenced by the same overarching theme: the heavy concentration of S&P 500 returns in a small group of mega-cap technology and AI-related names. Semiconductor and cloud leaders have pushed technology weights to elevated levels, which shapes both portfolios. Energy remains the clearest point of difference. Shifting oil prices, producer discipline, and the energy transition continue to affect the sector. SPYX’s exclusion of fossil fuel reserve owners aligns with ESG preferences, yet it also removes a sector that has at times offered diversification during growth-stock weakness. Interest-rate expectations remain a notable risk for both, given their tilt toward high-multiple technology holdings.

Performance Patterns

SPYX and VOO have moved in close alignment over recent periods, reflecting their shared mega-cap technology foundation. Performance gaps have stayed modest and largely tied to energy-sector moves. When energy stocks have outperformed, VOO’s 3.4% allocation has given it a modest edge; when technology has led, the funds have tracked nearly in tandem. Volatility levels are virtually identical. The more lasting distinctions come from cost and scale rather than return differences. VOO’s 0.03% expense ratio creates a lasting cost advantage that compounds over time, while its greater liquidity supports tighter spreads. SPYX appeals mainly to those wanting a fossil-fuel-free core with a modest thematic bias. From what I see, this setup favors cost-conscious investors over the long haul.

Using Tickeron’s AI Screener for ETF Research

I often turn to Tickeron’s AI Screener when comparing ETFs like these. The tool lets me filter across technical patterns, fundamentals, trends, and volatility to quickly surface relevant ideas and benchmarks. It streamlines the process of spotting how different holdings stack up without manual effort. In this case, it helped confirm the structural similarities and cost differences between the two funds. Explore the AI Screener to refine your own ETF comparisons and uncover opportunities that fit your approach.

My Take: Why VOO Edges Out

Based on the structural details, Tickeron’s AI currently points to VOO as the stronger choice for most investors. The key factors are its lower cost, broader diversification, superior liquidity, and full index fidelity. The 0.03% expense ratio is about seven times lower than SPYX’s 0.20%, creating a meaningful compounding advantage over long periods. VOO also delivers complete S&P 500 coverage without screens, far larger AUM, and better trading liquidity. While SPYX offers a credible ESG tilt and similar large-cap exposure, the higher fee and narrower diversification do not provide a clear risk-adjusted benefit at present. For core U.S. large-cap exposure, VOO holds the more compelling profile in my view.

Disclaimer

The information on this webpage is provided for general informational and educational purposes only and is not intended as investment advice, a recommendation to purchase or sell any security, or an offer or solicitation related to investments. It does not consider your personal financial situation, goals, or risk profile, and all investing carries inherent risks, including the possibility of losing your entire investment. For more details, please review our full disclaimer.

Disclaimers and Limitations

Contributor

Scott Bell|Expert

I’m a trader and independent researcher. My interest lies at the intersection of financial markets, algorithms, and capital management. I develop data-driven tools and strategies and study algorithmic approaches to market analysis. I help turn complex market data into clear insights and practical systems. I believe technology should support, not replace, investment thinking

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