SPY vs IVV: Head-to-Head Comparison

Side-by-Side Comparison

Key Differences Between SPY and IVV

SPY (SPDR S&P 500 ETF Trust) is a u.s. large-cap blend fund managed by State Street Global Advisors. SPY was the very first ETF listed in the United States and remains the most heavily traded ETF in the world. Like VOO, it tracks the S&P 500 index, but SPY is especially popular among active traders due to its enormous daily trading volume. Beginners should know that SPY and VOO hold the same stocks, but SPY has a slightly higher expense ratio.

IVV (iShares Core S&P 500 ETF) is a u.s. large-cap blend fund managed by BlackRock. IVV tracks the S&P 500 index, offering exposure to 500 of the largest U.S. companies at one of the lowest costs available. It is a core building block for any portfolio, providing broad diversification across all major sectors of the American economy. Beginners appreciate IVV for its simplicity, rock-bottom fees, and strong long-term performance history.

The most notable differences are in fees (9.45% vs 0.03%), number of holdings (503 vs 503), and 5-year returns (15.70% vs 15.70%).

Holdings Overlap Analysis

SPY and IVV share 100% of their top holdings. This means they are very similar funds — owning both would result in significant duplication in your portfolio. For most beginners, choosing one is sufficient.

Cost Comparison Over Time

If you invest $10,000 and hold for 20 years (assuming 8% annual returns):

Over 20 years, the fee difference amounts to $38,885 on a $10,000 investment. IVV saves you more in fees over time.

Which One Should a Beginner Choose?

Choose SPY if: You want active traders who need high liquidity and tight spreads, options traders looking for the deepest options market available, institutional investors executing large block trades. It's managed by State Street Global Advisors with an expense ratio of 9.45%.

Choose IVV if: You want investors seeking a low-cost core holding that mirrors the entire large-cap u.s. market, retirement savers building a simple three-fund portfolio, anyone who wants an alternative to voo with a slightly longer track record. It's managed by BlackRock with an expense ratio of 0.03%.

Can You Own Both SPY and IVV?

With 100% holdings overlap, owning both means you're essentially doubling down on the same stocks. For beginners, we recommend picking one to keep things simple. If you want more diversification, consider pairing your choice with an international ETF like VXUS or a bond ETF like BND instead.

Frequently Asked Questions