# Vanguard's 0.03% Fee Costs More Than Competitors

> State Street sells identical S&P 500 stocks for 33% less than Vanguard's VOO.
- Title: Vanguard's 0.03% Fee Costs More Than Competitors | Shortify
- Summary: State Street sells identical S&P 500 stocks for 33% less than Vanguard's VOO. Vanguard's 0.03% fee for S&P 500 ETFs costs 33% more annually than State…
- Keywords: vanguard, state street, s&p 500, etf, expense ratio, spym, ivv, fxaix, Vanguard's, Fee, Costs, More
- Source: 24/7 Wall St. — https://247wallst.com/investing/etf/2026/09/21/voos-0-03-fee-hides-the-real-cost-state-street-now-sells-the-same-500-stocks-for-a-third-less
- Author: Ryne Mauck
- Published: 2026-09-21T21:55:50+00:00
- Read time: 1 min
- Topics: vanguard, state street, s&p 500, etf, expense ratio, spym, ivv, fxaix
## Vanguard's Fee War
Vanguard markets its s&p 500 fund as the fee war's final answer at three basis points.
## State Street's New Fee
State street now sells the identical 500 stocks for two basis points.
## Annual Cost Difference
Voo costs $3 a year per $10,000 versus spym's $2 a year per $10,000.
## Long-Term Impact
The extra fee redirects $1,200 from your account to vanguard over two decades.
## Hidden Fee Structures
Voo's tax-efficient structure costs 33% more than competitors with similar features.
## Cheaper Alternatives
Spym and ivv hold identical stocks at one-third the fee of voo.
## Key takeaway

Vanguard's 0.03% fee for S&P 500 ETFs costs 33% more annually than State Street's 0.02% fee for the same stocks.