Money Is Moving Out Of SPY, But Vanguard's S&P 500 Fund Is Growing

SPY (Photo credit: twicepix)

By Richard Bloch:I saw something very interesting when I was researching ETF fund flows at XTF.com.It's pretty clear that money is flowing out of large-cap stocks, so I wasn't surprised to see that over the course of the year so far, money has been flowing out of the SPDR S&P 500 ETF (SPY).But money has actually been flowing into the Vanguard S&P 500 ETF (VOO).Why? Probably because investors are getting smart. While SPY has a net expense ratio of 9.45 basis points, the Vanguard version only costs 5 basis points. That's an 47% discount - and the funds both track the exact same S&P 500 index.Here's a look at the fund flows per XTF.comWhile SPY has seen $5 billion dollars in net outflow year to date, investors put $1.79 billion into VOO.At about $4 billion, Vanguard's VOO is much smaller than the $93.4 billion SPY ETF... 
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