VOO vs IVV: Vanguard vs iShares S&P 500
VOO and IVV are about as identical as two ETFs get: same index, same 0.03% fee, same structure. The tie-breakers are issuer ecosystem and brokerage commission-free lists.
Don't have time? Here's what you need to know:
- 1VOO and IVV both track the S&P 500 for 0.03% in the same open-end structure — they're near-perfect twins.
- 2Returns and tracking error are effectively identical; year-to-year differences are rounding errors.
- 3The real tie-breakers are brokerage commission-free lists, auto-invest support, and issuer ecosystem.
- 4Never sell an appreciated position in a taxable account just to switch — there's no benefit to offset the tax.
About as Identical as Two ETFs Get
VOO (Vanguard) and IVV (iShares, from BlackRock) both track the S&P 500, hold the same ~500 stocks in the same weights, and charge the same 0.03% expense ratio. Both are open-end funds — the modern, efficient ETF structure that reinvests dividends continuously and can lend securities. Their gross returns are effectively indistinguishable.
This is unlike VOO vs SPY, where SPY's older unit-investment-trust structure and higher fee create a real gap. VOO and IVV are genuine twins. If you owned one and woke up holding the other, your portfolio's behavior wouldn't change in any way you'd notice. The differences that remain are small and mostly about ecosystem, not the funds themselves.
The Few Things That Actually Differ
The first tie-breaker is your brokerage. Some platforms put one issuer's funds on their commission-free or no-transaction-fee list and not the other, and a few offer fractional-share or auto-invest features that work more smoothly with their preferred lineup. Whichever fund trades free and automates cleanly in your account is the practical winner.
The second is issuer ecosystem. If you're a Vanguard loyalist building a Vanguard-heavy portfolio, VOO fits naturally; if you're already in the iShares ecosystem, IVV does. iShares has at times set a marginally higher dividend reinvestment cadence or differed by a basis point of tracking, but these effects are tiny and not consistent enough to choose on. Both track the index extremely tightly.
| VOO | IVV | |
|---|---|---|
| Issuer | Vanguard | iShares (BlackRock) |
| Index | S&P 500 | S&P 500 |
| Expense ratio | 0.03% | 0.03% |
| Structure | Open-end ETF | Open-end ETF |
| Launched | 2010 | 2000 |
| Holdings | ~500 | ~500 |
Tip: Check which of VOO or IVV is commission-free and supports automatic or fractional investing at your brokerage. That's the single most useful tie-breaker between two otherwise identical funds.
Performance and Tracking Error
Because both funds own the same index at the same fee, their tracking error versus the S&P 500 is minuscule, and the gap between them in any given year is usually a rounding error — a basis point here or there that reverses the next year. Over a decade, no honest analyst can tell you one will reliably beat the other.
Both are also enormous and highly liquid, with penny-wide bid-ask spreads, so trading costs are negligible for ordinary purchase sizes. There is simply no meaningful performance reason to prefer one over the other; this is a coin-flip on the fund itself, decided by external factors like your broker.
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Bottom Line
Pick whichever is commission-free and easiest to automate in your brokerage, or whichever issuer's ecosystem you already use. If neither factor applies, flip a coin — you will not be wrong. And if you already hold one in a taxable account with gains, never sell to switch to the other; there's no benefit to justify the capital-gains tax.
The more important takeaway is that both VOO and IVV are excellent, ultra-cheap ways to own the S&P 500. The energy you might spend agonizing between them is better spent on bigger decisions like your savings rate, asset allocation, and how much international exposure to add.
Important: Don't sell an appreciated VOO or IVV position in a taxable account just to switch to the other. They're interchangeable, and the capital-gains tax would be a pure, pointless cost.
Frequently Asked Questions
Is there any real difference between VOO and IVV?
Almost none. VOO (Vanguard) and IVV (iShares) both track the S&P 500, hold the same stocks, charge the same 0.03% fee, and use the same open-end structure. Their returns are effectively identical. The only meaningful tie-breakers are which is commission-free at your brokerage and which issuer's ecosystem you prefer.
Which should I choose, VOO or IVV?
Choose whichever trades commission-free and supports automatic or fractional investing at your broker, or whichever issuer you're already invested with (Vanguard for VOO, BlackRock/iShares for IVV). If neither factor distinguishes them, either is a perfect choice — the decision genuinely doesn't matter much.
Should I switch from one to the other to save money?
No. They cost the same 0.03%, so there's nothing to save. In a taxable account, switching would trigger capital-gains tax for zero benefit. In a tax-advantaged account it's free but still pointless. Hold whichever you own and direct new money wherever is most convenient.
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Alex Harrington
CFA Level II Candidate, Finance & Economics
Alex Harrington is an independent ETF researcher and personal finance writer with over 8 years of experience analyzing exchange-traded funds. A CFA Level II candidate with a background in economics, Alex has reviewed 800+ ETFs and helped thousands of beginners build their first investment portfolios through clear, jargon-free education.
This content is for educational purposes only and does not constitute financial advice. Past performance does not guarantee future results. Consult a licensed financial advisor before making investment decisions.