SPYX vs VOO

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.

Introduction

SPYX and VOO sit at an unusual crossroads in the ETF comparison landscape. Both are passively managed, market-cap-weighted funds built on the S&P 500, and both funnel investors into the same dominant technology and mega-cap names. Yet they serve different mandates: VOO delivers the complete index, while SPYX applies an environmental screen that strips out fossil fuel reserve owners. For investors deciding between broad total-market fidelity and a sustainability-tilted core holding, the choice hinges on whether the exclusion screen is worth a higher fee and reduced energy exposure. This comparison examines structural differences, sector exposure, fund performance, and relative positioning in the current market environment.

SPDR S&P 500 Fossil Fuel Reserves Free ETF (SPYX) Overview

SPYX is a passively managed ETF that seeks to track the S&P 500 Fossil Fuel Reserves Free Index. This index removes companies that own fossil fuel reserves, effectively eliminating traditional energy producers such as integrated oil and gas majors from the portfolio. The fund holds roughly 490 stocks and charges a net expense ratio of 0.20%. Its top holdings are NVDA, AAPL, MSFT, AMZN, and GOOGL, followed by AVGO, META, MU, and TSLA. Sector allocation skews heavily toward information technology at roughly 38–39%, followed by financials near 12.5%, communication services around 10%, consumer discretionary near 10%, and healthcare near 9.5%. Energy represents only about 1.2%, reflecting the fossil fuel screen. Because the exclusion removes relatively few names, SPYX's return profile closely mirrors the broader S&P 500 despite its thematic overlay.

Vanguard S&P 500 ETF (VOO) Overview

VOO is one of the world's largest ETFs, tracking the full S&P 500 Index with no exclusions or screens. It holds roughly 500 large-cap U.S. stocks and charges an ultra-low expense ratio of 0.03%, among the cheapest ways to own the index. Its top holdings are effectively identical to SPYX's, led by NVDA, AAPL, MSFT, AMZN, and GOOGL, with AVGO, META, MU, and TSLA rounding out the top ten. Information technology accounts for roughly 40% of the portfolio, with financials near 11%, communication services around 10%, healthcare near 9.3%, and consumer discretionary about 8.7%. Unlike SPYX, VOO retains full energy exposure at approximately 3.4%, including major integrated oil producers. With roughly $1 trillion in AUM and deep daily trading volume, VOO offers exceptional liquidity and tight bid-ask spreads.

Industry and Thematic Backdrop

Both funds are shaped by the same dominant macro narrative: the concentration of S&P 500 returns in a handful of mega-cap technology and artificial intelligence (AI) infrastructure names. Semiconductor and cloud-computing leadership has kept the index's technology weighting at historic highs, which in turn drives both portfolios. Meanwhile, the energy sector remains a key differentiator. Fluctuating oil prices, capital-discipline shifts among producers, and the broader energy transition have kept traditional energy in flux. For SPYX, the exclusion of fossil fuel reserve owners aligns with growing environmental, social, and governance (ESG) demand, but it also removes a sector that has occasionally provided diversification when growth stocks falter. Interest rate expectations remain a central risk for both funds, given their sensitivity to long-duration, high-multiple technology equities.

Performance and Positioning Comparison

Over recent weeks and market cycles, SPYX and VOO have tracked each other closely, a direct result of their shared mega-cap technology backbone. Differences in fund performance have generally been modest and driven by relative moves in the energy complex. During periods when energy equities have outperformed, VOO's roughly 3.4% allocation has provided a slight tailwind versus SPYX's minimal exposure; conversely, when technology has led, the two funds have moved almost in lockstep. On volatility, the funds are near-identical, as both carry similar exposure to the same large-cap leaders. The more durable distinction lies in cost and scale rather than return dispersion. VOO's 0.03% expense ratio gives it a structural annual cost advantage that compounds over time, while its deeper liquidity supports efficient institutional trading. SPYX's relative positioning appeals primarily to investors seeking a fossil-fuel-free core with a modest thematic tilt.

AI Screener

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Tickeron AI Verdict

Based on observable structural factors, Tickeron's AI would currently favor VOO. The reasoning centers on cost efficiency, diversification breadth, liquidity, and index fidelity. VOO's 0.03% expense ratio is roughly seven times cheaper than SPYX's 0.20%, a durable structural advantage that compounds over long holding periods. VOO also offers complete S&P 500 coverage without exclusions, deeper AUM, and superior trading liquidity, which supports tighter spreads and efficient execution. While SPYX delivers a credible ESG-oriented tilt and comparable large-cap exposure, its higher fee and reduced diversification do not currently translate into a clear risk-adjusted edge. Probabilistically, VOO presents the stronger structural profile for most investors seeking core U.S. large-cap exposure.

Disclaimer

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