Key Takeaways:
- SPYM crossed $150 billion in AUM on July 4 after $32 billion in 2025 inflows
- The fund charges 0.02% versus VOO's 0.03%, with an $87 share price
- Switching from VOO in taxable accounts triggers capital gains that erase the fee edge
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SPYM crosses $150B in AUM as low-cost ETF draws $32B in inflows
State Street's SPDR Portfolio S&P 500 ETF crossed $150 billion in assets under management, pulling in $32 billion in net inflows this year as investors gravitated toward its industry-low 0.02% expense ratio.
The SPDR Portfolio S&P 500 ETF crossed $150 billion in assets under management on July 4, pulling in $32 billion in net inflows in 2025 as investors gravitated toward its 0.02% expense ratio and $87 share price.
"The fee gap is one basis point, but it compounds into real dollars over a 30-year horizon," said Hannah Park, asset management analyst at Edgen. "For a young saver funding a Roth IRA, the $87 share price also removes the friction of buying whole shares."
The fund, formerly trading under the SPLG ticker before State Street's 2025 rebranding, charges 0.02% annually versus the Vanguard S&P 500 ETF's 0.03% and trades at roughly $87 per share compared with VOO's $681. Returns are functionally identical: SPYM returned 9.25% year to date and 21.91% over one year, while VOO posted 9.26% and 21.92% over the same periods. Five-year totals stand at 85.74% for SPYM versus 85.73% for VOO.
The $150 billion milestone highlights a structural shift in how retail investors access the S&P 500. Across 40 years of $7,000 annual contributions compounding at 8%, total fees on SPYM amount to roughly $360 versus $540 on VOO — a $180 gap that widens to an estimated $15,000 to $25,000 in foregone growth on a $500,000 balance held for three decades. The fund reached $100 billion in just 283 trading days after hitting $50 billion.
Portfolio composition and concentration risk
The fund holds 508 securities drawn from the S&P 500, weighted by market capitalization with a beta of 1.01. NVIDIA accounts for 7.37% of assets, Apple 6.59%, and Microsoft 4.38%, with information technology representing 37.76% of the total portfolio. The top 10 positions collectively make up 35.91% of assets, meaning a buyer of SPYM is effectively making a concentrated bet on mega-cap technology stocks alongside the broader index exposure. The fund yields approximately 1.04% with quarterly distributions, with the most recent payout of $0.2392 per share on the June ex-date. There are no options overlays, leverage, or factor tilts.
Three constraints investors should consider
Bid-ask spreads on SPYM run around $0.01 versus near-zero on VOO, a friction that can offset the expense ratio advantage for frequent traders or large block orders. The sector concentration mirrors the index: technology at 37.76% of holdings means investors get mega-cap tech exposure whether they want it concentrated or not. For taxable account holders, selling existing VOO or iShares Core S&P 500 ETF shares to capture a single basis point of fee savings would trigger capital gains taxes that erase the benefit for years.
The SPDR Portfolio S&P 500 ETF suits long-horizon savers building a core U.S. large-cap position in tax-advantaged accounts where switching is free and small contributions must buy whole shares. For investors already holding Vanguard or iShares core trackers in taxable accounts, the 1-basis-point edge is not worth the tax bill. For active traders, VOO's tighter spreads matter more than the fee difference.
This article is for informational purposes only and does not constitute investment advice.
