Generally ETF have slightly lower expense ratios.
http://etfdb.com/compare/lowest-expense-...
If you buy the ETF with a fund family like Vanguard, Fidelity and the like, they will re-invest the dividends if you request that feature. ETF's usually have slightly lower expenses but the Mutual Funds are comparable for an index fund like thi since there is very little trading of the stocks in it.
Looking at SP500 indices vs SP500 ETF's. Which is better? Which has the lowest costs and which would you recommend?