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In general, the answer is yes, but only if youre patient.
Consider the S&P returns over the past 10 years to illustrate the point.
For example, say youre 35 and have $1,000 invested inVOO or SPY.
Imagine you continue investing $250 into the fund every month for the next 30 years.
Consistently investing in the S&P 500 is a tried-and-true method for building long-term wealth.
However, should you buy VOO, SPY or another fund if youre ready to start doing that?
SPY averages annual returns of about 0.5% more than VOO.
However, it has a higher management fee.
You have to pay 0.09% of the amount you invest in SPY toward fees annually.
That drops to just 0.03% for VOO.
These fees will eat away at some of the gains you make.
Thats why investors generally say its smarter to invest in VOO than SPY.
However, these fees are most important to people investing large amounts in the S&P 500.
Its just something to consider as you continue investing in the S&P to build wealth.
Kellan Jansencontributed to the reporting for this article.
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