SPDR's cheaper SPYM ETF offers identical S&P 500 exposure at one-fifth the fees of the popular SPY fund.

SPDR offers two ETFs tracking the S&P 500: the well-known SPY and the lesser-known SPYM. While both hold the same stocks in the same proportions and pay similar dividends, SPYM charges only 0.02% in fees compared to SPY's 0.0945%. This makes SPYM a cost-effective choice for long-term investors seeking S&P 500 exposure, while SPY remains preferred by traders due to its liquidity and options market depth. Vanguard's VOO and BlackRock's IVV also offer similar exposure with slightly higher fees around 0.03%, catering to investors loyal to those firms or working with advisors.