SPY vs IVV: Side-by-Side ETF Comparison

SPY vs IVV both track the S&P 500 with near-identical performance - IVV edged out SPY by 0.07% over the past year. The real difference comes down to cost: IVV charges 0.03% versus SPY's 0.10%, and IVV yields slightly more at 1.17% compared to 1.07%.

Table of Content

• Annual & Cumulative Returns
• Risk Metrics
• Dividend Yield & Growth
• Fees & Liquidity
• ETF Composition: Asset Classes
• Regional Allocation
• Sector Weights
• Top 10 Holdings
• Valuation & Growth Metrics
• Which ETF Fits Your Portfolio?

ETF Issuers & Investment Objective

SPY launched in 1993 as the first U.S. ETF and is still structured as a unit investment trust, which means it must fully replicate the S&P 500 and can't lend out securities to generate extra income. IVV came five years later under BlackRock's iShares umbrella and is organized as an open-end fund, giving managers a bit more flexibility they can use futures or lend portfolio holdings, and they promise to keep at least 80% of assets in the names that define the index.

That structural gap shows up in the cost column: IVV charges 0.03% while SPY asks 0.10%, so on a $100,000 position you're paying $30 a year versus $100. Both track the same 500 large-cap U.S. stocks with almost identical sector weights (about 34% tech, 12% financials), and their one-year returns sit within seven basis points of each other. The choice really comes down to whether you want the legacy ticker with the tightest options market (SPY) or the leaner fee structure (IVV).

Annual & Cumulative Returns

The performance gap between SPY and IVV has been remarkably consistent across every time period, with IVV holding a slight edge. The difference ranges from 0.07 percentage points over one year to 0.06 points over a decade - hardly earth-shattering, but meaningful when you consider both funds track the exact same index. IVV's marginally lower expense ratio of 0.03% versus SPY's 0.10% helps explain this persistent outperformance, as fees directly reduce returns.

What's striking is how tightly these two ETFs track each other. Whether you look at the volatile YTD period where both returned 1.07%, or the 10-year stretch where IVV's 15.69% barely nudges past SPY's 15.63%, the performance differential remains stable. For investors choosing between them, this suggests the decision comes down to cost sensitivity rather than return expectations - IVV's expense advantage compounds over time, while SPY's superior liquidity might matter more for active traders.

Risk Metrics

The volatility numbers tell a familiar story for anyone tracking S&P 500 funds. SPY shows 10.98% one-year volatility against IVV's 10.99%, and the three-year figures are equally close at 11.94% versus 11.95%. These tiny differences reflect what you'd expect from two funds holding essentially the same 500 stocks in similar proportions. The Sharpe ratios edge slightly in IVV's favor at 1.4 versus 1.39, suggesting marginally better risk-adjusted returns over the past three years.

What matters here isn't picking the winner by hundredths of a percentage point, but understanding that both funds deliver nearly identical risk profiles. The slight IVV advantage in Sharpe ratio largely disappears when you consider how these funds track the same index with near-perfect correlation. For investors choosing between them, risk characteristics shouldn't drive the decision - focus instead on the expense ratio gap and whether your broker offers commission-free trading on either fund.

Dividend Yield & Growth

IVV's 1.17% yield edges out SPY's 1.07% by ten basis points, a difference that compounds over time. Both funds pay quarterly, but the slightly higher yield from IVV means an extra $10 per year on every $10,000 invested. Since both track the same S&P 500 index, this gap reflects minor timing differences in dividend collection and fund expenses rather than portfolio composition.

The yield spread has narrowed recently, but IVV's lower 0.03% expense ratio gives it a structural advantage in maintaining higher dividend payouts. SPY's 0.10% fee drag means it retains less of the underlying index's dividend income. For investors prioritizing current income, that extra 0.10% yield advantage might seem small, but it represents nearly 10% more dividend income annually without taking additional risk.

Fees & Liquidity

SPY charges 0.095% a year while IVV asks 0.03%, so on a $10,000 holding you’re paying about $9.50 versus $3.00. That seven-dollar difference repeats every year, and over a decade it compounds to roughly $80-$90 even if the market goes nowhere. Both funds track the same 500 stocks, so the fee gap is the one sure source of divergence between the two returns.

Trading costs tell the opposite story. SPY’s decade-long head start and heavy institutional use keep its bid-ask spread routinely below a penny, and daily volume north of 70 million shares means you can move large blocks without moving the price. IVV still trades millions a day, but spreads are often a cent or two wider and smaller lots can appear, so active traders or those using market orders may give back the fee savings on the first trade.

ETF Composition: Asset Classes

SPY and IVV are virtually identical in their asset-class footprints: each keeps just over 99% of its portfolio in U.S. common stocks, a sliver of roughly 0.5% in foreign listings that are part of the S&P 500 (think ADRs or dual-domiciled companies), and the remaining fraction parked overnight in cash. The difference is measured in hundredths of a percent SPY holds 99.13% U.S. equities while IVV holds 99.20% so day-to-day market exposure is the same no matter which ticker you choose.

The only practical gap shows up in that cash drag: SPY’s 0.34% cash weight versus IVV’s 0.27%. Over most periods the gap is lost in the noise, yet in a sharp rally those extra seven basis points of fully-invested money can give IVV a slight edge, which helps explain why its one-year return edges SPY by seven basis points (14.43% vs 14.36%). Unless you’re hyper-sensitive to every last basis point, the allocation decision between these two really comes down to cost and trading convenience, not asset-class exposure.

Regional Allocation

Both ETFs are virtually identical when it comes to geographic exposure, with North American holdings making up 99.47% of SPY and 99.47% of IVV. The remaining sliver - less than half a percent for each fund - gets spread across UK, European developed markets, and emerging Asia. These tiny international allocations reflect the reality that both funds track the S&P 500, which by definition focuses on US companies.

The practical takeaway? You're getting pure US equity exposure with either option. The 0.003% difference in North American allocation between SPY and IVV won't move the needle on your portfolio's performance. Any international revenue exposure comes through the multinational operations of the US companies themselves, not through direct foreign stock holdings.

Sector Weights

Both funds mirror the S&P 500, so their sector footprints are nearly identical. Technology dominates at just over 34%, and the next four slots financials, communication services, healthcare and consumer cyclicals line up within 0.2 percentage-points of each other. The biggest gap is in tech: IVV carries 34.3% versus SPY’s 34.2%, a difference so small it will barely move the needle on returns.

Drill down to the tails and the story doesn’t change. Energy, real estate, utilities and basic materials each sit within 0.02% of one another. Over a year that 0.02% drift might add or subtract a single basis point to performance noise you’ll never feel after fees and trading costs. Bottom line: if you’re choosing between these two ETFs, pick the one with the expense ratio or bid-ask spread you like better; sector bets won’t decide the outcome.

Top 10 Holdings

Both SPY and IVV track the S&P 500, so their top-five line-ups are almost photocopies. NVIDIA leads at 7.59% in each portfolio, followed by Apple at 6.20%. Microsoft is a single basis point heavier in IVV (5.67%) than in SPY (5.66%), a difference so small it won’t move the needle unless you’re trading millions of shares. Amazon and Alphabet round out the list at identical 3.85% and 3.25% weights. In other words, if you already own one fund, you’re not gaining new stock exposure by holding the other.

The real takeaway is concentration risk: more than a quarter of every dollar invested goes to just five tech-heavy names. If the AI trade cools or regulation bites, both ETFs will feel it in lock-step. Sector weights confirm the tilt about 34% in tech so the choice between SPY and IVV should hinge on cost, liquidity, and tax treatment, not on hopes of a different ride from the mega-caps.

Valuation & Growth Metrics

The valuation spread between these two S&P 500 trackers is practically nonexistent. SPY trades at 22.28 times earnings versus IVV's 22.30, a difference of just 0.02 points. Price-to-book tells the same story - SPY's 4.51 ratio sits barely below IVV's 4.53. These microscopic gaps reflect what's essentially the same portfolio, just wrapped in different fund structures.

Growth expectations mirror this similarity. Both funds point to long-term earnings growth around 10.5% annually, with sales growth pegged just under 8%. The takeaway here isn't which fund looks cheaper - neither offers a valuation edge. Instead, investors should focus on whether they're comfortable paying roughly 22 times earnings for a portfolio dominated by tech giants, where companies like Apple and Microsoft drive the growth narrative. The market's pricing suggests confidence in corporate America's ability to deliver double-digit earnings expansion, though at these multiples there's little room for disappointment.

Which ETF Fits Your Portfolio?

The choice between SPY and IVV comes down to cost versus liquidity. IVV's 0.03% expense ratio saves you $7 annually on every $10,000 invested compared to SPY's 0.10% fee. That difference compounds significantly over time. IVV also delivers slightly higher dividend income at 1.17% versus SPY's 1.07%, and posted marginally better one-year returns of 14.43% compared to 14.36%.

Both ETFs own identical S&P 500 holdings with nearly identical sector weightings, so you're getting the same market exposure either way. SPY remains the trading favorite with tighter bid-ask spreads and higher volume for frequent traders. For buy-and-hold investors, IVV's lower fees make it the more efficient choice. Pick SPY if you trade actively or need the most liquid option. Choose IVV if you're building a long-term position and want to minimize expenses.

If you want to have look at other ETF comparisons, check out this: Fund Overlap Tool

Data sources: The data has been obtained from the ETF provider's website and ETF fact sheet.