VOO vs IVV: Head-to-Head Comparison

Side-by-Side Comparison

Key Differences Between VOO and IVV

VOO (Vanguard S&P 500 ETF) is a u.s. large-cap blend fund managed by Vanguard. VOO tracks the S&P 500 index, giving you ownership in 500 of the largest U.S. companies in a single investment. It is one of the most popular ETFs in the world thanks to its ultra-low expense ratio and broad market exposure. For beginners, VOO is often recommended as a core portfolio holding because it provides instant diversification across America's leading businesses.

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 (0.03% vs 0.03%), number of holdings (503 vs 503), and 5-year returns (15.80% vs 15.70%).

Holdings Overlap Analysis

VOO 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 $0 on a $10,000 investment. The cost difference is negligible — choose based on other factors.

Which One Should a Beginner Choose?

Choose VOO if: You want beginning investors looking for a simple core portfolio holding, long-term buy-and-hold investors seeking broad u.s. market exposure, cost-conscious investors who want minimal fees. It's managed by Vanguard with an expense ratio of 0.03%.

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 VOO 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