Too Many Investors Prefer SPY, Here Are the ETFs I Would Choose Instead

The exchange-traded fund (ETF) market is experiencing remarkable growth, and with over 4,000 ETFs available in the U.S. alone, selecting the right one can feel daunting. The popularity of ETFs has skyrocketed, becoming a staple in the portfolios of individual investors. The SPDR S&P 500 ETF (NYSEARCA: SPY), which launched in 1996, remains one of the largest and most widely used ETFs today, with $708.62 billion in assets under management.

While SPY invests in 500 of the largest U.S. companies, it may not be the best option for everyone. The market is evolving, and new ETFs are emerging that cater to investors seeking specific sectors, international exposure, or lower fees. For those looking for alternatives to SPY, here are three ETFs to consider:

Invesco QQQ Trust

The Invesco QQQ Trust (NASDAQ: QQQ) tracks the performance of the Nasdaq-100 Index, which includes 100 of the largest non-financial companies listed on the Nasdaq stock exchange. With a launch date of 1999, QQQ has an expense ratio of 0.20%. Over the past decade, it has delivered an impressive 486% return.

About 64% of QQQ's portfolio is allocated to the tech sector, with substantial investments also in consumer discretionary and healthcare. The funds top holdings include major players like Nvidia, Apple, Microsoft, Amazon, Alphabet, Tesla, and Meta Platforms. These companies are driving technological advancements and infrastructure development, making QQQ a prime choice for investors looking to focus on tech innovation.

As of 2025, QQQ has grown by 22.35% and is trading at $624. Given its focus on high-growth sectors, QQQ is a strong candidate for investors aiming for above-average returns.

iShares Core S&P 500 ETF

The iShares Core S&P 500 ETF (NYSE: IVV) is another strong alternative to SPY. This ETF also tracks the S&P 500 index and holds the 500 largest U.S. companies by market capitalization. With an expense ratio of just 0.03%, its one of the most cost-effective options in the market.

Similar to QQQ, IVV has a tech-heavy portfolio, with 34.85% of its assets invested in the sector. It also has significant allocations to financials and communications. The top holdings mirror those of QQQ, featuring names like Nvidia, Apple, Microsoft, Amazon, Alphabet, Meta Platforms, and Tesla.

IVV has delivered solid returns, with a 3-year return of 94.85% and a 5-year return of 113.98%. In 2025, it has gained 16.96%, trading at $687. This ETF offers a comparable yield to SPY but with a lower expense ratio, making it an attractive option for long-term investors seeking stability and growth.

Vanguard International Dividend Appreciation ETF

If you're looking for international exposure with a focus on dividend growth, the Vanguard International Dividend Appreciation ETF (NASDAQ: VIGI) might be the right choice. This fund tracks the S&P Global Ex-U.S. Dividend Growers Index and invests in large-cap companies from developed and emerging markets that have consistently grown their dividends. VIGI has a yield of 1.85% and an expense ratio of 0.10%.

VIGI offers impressive global diversification, with 41.90% of its investments in Europe, 33.50% in the Pacific region, and 17% in North America. Top holdings include global giants like the Royal Bank of Canada, Nestl, Hitachi, Roche, and Reliance Industries. The ETF has paid a quarterly dividend of $0.36, and its top 10 holdings account for 34.88% of the fund.

With a 3-year return of 35.30% and a 5-year return of 36.25%, VIGI has gained 13.38% in 2025 and is trading at $90.57. This ETF offers access to international blue-chip stocks with a focus on dividend growth, making it a solid choice for risk-conscious investors seeking international exposure.

Conclusion

While SPY remains a dominant ETF in the market, alternatives like Invesco QQQ, iShares Core S&P 500 ETF, and Vanguard International Dividend Appreciation ETF offer targeted exposure to growth sectors, global markets, and dividend-paying stocks. Each of these ETFs has unique features, such as lower expense ratios, tech-heavy portfolios, or international diversification, which can help investors build a well-rounded portfolio tailored to their specific needs and goals.

Sources:

• Too Many People Just Buy SPY, These Are The ETFs I’d Own Instead