VOO vs IVV: Side-by-Side ETF Comparison

VOO vs IVV are nearly identical S&P 500 trackers with the same 0.03% expense ratio and 14.43% one-year return - the only meaningful difference is IVV's slightly higher dividend yield at 1.17% versus VOO's 1.13%. Both hold the same mega-cap stocks with ~35% in tech, so your choice comes down to whether you prefer Vanguard or iShares as your fund provider.

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?
• FAQ

ETF Issuers & Investment Objective

VOO comes from Vanguard, the company that pioneered index investing, while IVV is managed by BlackRock's iShares division - the world's largest ETF provider. Both funds track the exact same S&P 500 index and charge the same rock-bottom 0.03% expense ratio. The difference lies in their approach: VOO aims to hold every stock in the same proportion as the index, while IVV keeps at least 80% in actual S&P 500 stocks and can use derivatives or hold cash for the remaining 20%.

This structural difference rarely affects returns - both delivered identical 14.43% one-year gains - but it can matter during volatile periods. IVV's flexibility with that 20% buffer sometimes helps with tracking accuracy, though VOO's full replication method keeps things simple. The dividend yield gap is minimal (1.17% vs 1.13%), and sector weightings are nearly identical with tech hovering around 34-35%. For most investors, choosing between these two comes down to personal preference for Vanguard's ownership structure versus iShares' massive trading volume, not investment strategy.

Annual & Cumulative Returns

The performance gap between VOO and IVV is practically nonexistent across every timeframe. Both funds delivered identical 14.43% returns over the past year, and the difference remains negligible stretching back a decade - we're talking 0.01% on three-year returns (21.51% vs 21.52%) and dead-even matches everywhere else. This near-perfect tracking makes sense since both ETFs follow the same S&P 500 index, though subtle differences in management techniques and sampling methods create these tiny variations.

What this means for your portfolio choice: the return data won't help you decide between these two funds. With expense ratios locked at 0.03% each and performance differences measured in hundredths of a percent, other factors take center stage. Consider whether you prefer Vanguard's structure (VOO) or BlackRock's platform (IVV), or if one trades more efficiently in your specific account type. The returns essentially cancel each other out as decision criteria.

Risk Metrics

Both funds show identical 1-year volatility at 10.99 percent, which means daily price swings have been equally moderate for investors holding either VOO or IVV. The three-year figures tell the same story - 11.96 percent versus 11.95 percent - essentially a rounding difference that won't affect your portfolio in any meaningful way. These numbers reflect the shared reality of tracking the same S&P 500 index through different custodians.

The Sharpe ratio of 1.4 for both ETFs confirms what the volatility data suggests: you're getting the same risk-adjusted returns regardless of which ticker you choose. This ratio indicates that for every unit of risk taken, both funds have delivered 1.4 units of excess return over Treasury bills during the past three years. Since both ETFs mirror the same underlying holdings with identical 0.03 percent expense ratios, the minimal differences we see likely stem from slight variations in cash management and dividend timing rather than any structural advantage.

Dividend Yield & Growth

The dividend gap between these two S&P 500 trackers amounts to just four basis points - IVV's 1.17% yield edges out VOO's 1.13%, which translates to about 40 cents more per $1,000 invested annually. That difference stems from IVV's quarterly payment schedule versus VOO's irregular distribution pattern throughout the year. Both yields sit near the index's historical average, reflecting the current market environment where mega-cap tech names (comprising over one-third of each fund) typically pay minimal dividends.

For income-focused investors, neither fund will move the needle much on cash flow. The real story here is timing: IVV's reliable quarterly payments make budgeting easier, while VOO's less predictable schedule might require more planning if you're living off portfolio income. Neither yield difference nor payment frequency should drive your decision between these two otherwise identical S&P 500 exposures.

Fees & Liquidity

VOO and IVV both charge 0.03% a year, which means you’ll pay about three cents for every hundred dollars invested. That’s low enough to be almost a rounding error, so on a $10,000 holding the fee difference between the two funds is literally zero dollars. In practice, the only way one will cost you more than the other is if your broker adds a commission or you get caught by a wide bid-ask spread when you trade.

Trading volume is where the nickel-and-dime differences show up. IVV changes hands roughly 5-6 million shares daily, while VOO clears 3-4 million. Both prints are more than deep enough for everyday investors, but if you’re moving a six-figure block in the first minute of the session, IVV’s extra liquidity can shave a penny or two off the spread. For everyone else, the decision comes down to which one your platform lets you buy free of charge; pick the commission-free version and you’ll keep the entire 0.03% in your pocket.

ETF Composition: Asset Classes

Both VOO and IVV put just about every dollar into U.S. large-caps 99.07% and 99.20%, respectively. The tiny residual is split between a sliver of non-U.S. names (0.53% each), a pinch of cash for daily redemptions, and, in VOO’s case, a 0.18% “other” bucket that largely reflects securities-lending collateral. In practical terms, you’re getting the same S&P 500 exposure; the 0.13-percentage-point gap in domestic weight is smaller than the daily drift either fund sees from flows.

What matters is how that micro-difference affects your wallet. IVV holds a touch more cash (0.27% vs 0.22%), so in a raging bull year you give up a hair of upside, while the extra buffer can soften the blow slightly in a sudden selloff. Unless you’re running a tight model that marks every basis point, the variance is noise both ETFs track the same index with the same 0.03% fee. Pick the one with the tighter bid-ask on your broker’s screen and call it a day.

Regional Allocation

Both VOO and IVV hug the S&P 500 so tightly that their geographic footprints are nearly carbon copies: each keeps just shy of 99.5% of assets in North-American listings. The residual half-percent is sprinkled across the same handful of markets roughly 0.38% in developed Europe, 0.11-0.12% in emerging Asia and a trace, about three-to-four hundredths of a percent, in UK-domiciled names. In other words, if you buy either fund you’re getting the same U.S.-centric bet; the foreign exposure is essentially rounding error created by a few S&P constituents that maintain secondary listings abroad.

For anyone trying to decide between the two, this slice of the portfolio offers no real differentiation. Neither fund hedges currency, neither adds extra developed-market equities, and neither tilts toward faster-growing regions. The practical takeaway: choose on cost, liquidity or personal preference, because regional allocation won’t tip the scales.

Sector Weights

Both ETFs mirror the S&P 500, so their sector footprints are nearly identical, but the tiny tilts are worth noticing. VOO carries 35.1% in technology about 0.8 percentage points more than IVV’s 34.3% while IVV holds slightly heavier stakes in energy (3.1% vs 2.8%) and industrials (7.9% vs 7.5%). Those differences are smaller than the daily drift most funds experience, yet they can add up if tech keeps leading the market or if energy rallies.

What this means in practice is that VOO gives you a hair more exposure to the index’s biggest growth engine, while IVV spreads a touch more capital across the cyclical corners that often wake up first when the economy re-accelerates. Either way, you’re still getting roughly two-thirds of the portfolio in tech, healthcare, and financials combined, so the choice won’t swing your returns by miles. Pick the one with the lower trading cost for your broker, then move on sector bets this small rarely drive the outcome.

Top 10 Holdings

Both ETFs mirror the S&P 500, so their top-five lineups are nearly identical NVIDIA, Apple, Microsoft, Amazon, and Alphabet just in slightly different weights. VOO gives NVIDIA a 7.75% slice versus 7.59% in IVV, and it also carries a heavier Apple stake (6.87% to 6.20%). Those extra tenths of a percent tilt VOO a hair more toward the mega-cap tech trade, which can juice returns when the group rallies but also adds concentration risk.

The combined weight of these five names lands around 27.7% in VOO and 27.2% in IVV, so either fund puts more than a quarter of your money behind a handful of Silicon Valley giants. If you already own individual tech stocks, the marginal difference in weighting probably won’t move the needle; pick the cheaper or more liquid share class and call it a day.

Valuation & Growth Metrics

Both ETFs trade at nearly identical valuations, with IVV showing a slight edge at 22.3 times earnings versus VOO's 22.4. The price-to-book spread is similarly tight - IVV's 4.53 compared to VOO's 4.59 means you're paying about 1.2% more per dollar of book value for Vanguard's offering. These differences are so small they'd likely be swallowed by daily market movements.

Growth expectations paint the same picture. Long-term earnings growth forecasts hover around 10.5% for both funds, while historical earnings growth differs by less than 0.4 percentage points. Sales growth shows the same pattern - essentially 8% for either option. When valuations and growth prospects are this similar, your choice between these S&P 500 trackers should probably hinge on other factors like trading volume, tax efficiency, or which brokerage platform you prefer.

Which ETF Fits Your Portfolio?

VOO and IVV are the same portfolio in different wrappers: both charge 0.03% a year, both returned 14.43% over the last twelve months, and both hold the identical 500 stocks in the S&P 500. The only daylight between them shows up in cash distributions IVV’s 1.17% yield edges out VOO’s 1.13% and even that gap is smaller than one quarterly payment. Picking one over the other is less a financial decision than a logistical one.

Use the fund that lives where you already trade. Vanguard customers get VOO commission-free, Fidelity or Schwab users grab IVV, and either way you’ll own the same slice of corporate America for essentially nothing. The rest is noise.

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.

FAQ

What’s the difference between VOO and IVV?

VOO and IVV are essentially identical S&P 500 trackers with the same 0.03% expense ratio and nearly matching performance - their 1-year returns differ by just 0.01% (14.43% vs 14.43%). The only meaningful difference is IVV's slightly higher dividend yield at 1.17% compared to VOO's 1.13%, and IVV has marginally less tech exposure (34.3% vs 35.1%).

Do VOO and IVV have the same holdings?

Yes, VOO and IVV hold essentially the same stocks. Both track the S&P 500 index with identical top five holdings - NVIDIA, Apple, Microsoft, Amazon, and Alphabet - and show only minor differences in sector weights. The 0.8% gap in technology allocation between VOO's 35.1% and IVV's 34.3% reflects slight timing variations in rebalancing, not different investment strategies.

Do VOO and IVV have the same expense ratio?

Yes, VOO and IVV have identical expense ratios of 0.03%. This means you'll pay just $3 annually for every $10,000 invested, making both ETFs equally cheap to own.

Do VOO and IVV pay dividends?

Yes, both VOO and IVV pay dividends. VOO currently yields 1.13% while IVV yields 1.17%, a difference of just 0.04 percentage points. Both funds distribute dividends quarterly, reflecting the dividend payments from the 500 companies in the S&P 500 index they track.

Can I use VOO and IVV interchangeably?

VOO and IVV are essentially interchangeable for most investors. Both track the S&P 500 with identical 0.03% expense ratios and nearly matching performance across all time periods, from the 1-year return of 14.43% to the 10-year return of 15.69%. The minor differences in dividend yield (1.13% vs 1.17%) and sector weights won't meaningfully impact long-term results. Your choice typically comes down to which broker offers the better trading conditions for each fund.

How do VOO’s and IVV’s performance compare?

VOO and IVV have delivered virtually identical performance across all time periods. Their returns match exactly at 14.43% for one year, 14.11% for five years, and 15.69% for ten years. The difference comes down to a razor-thin 0.01% in the three-year return and a 0.04% gap in dividend yield, both of which are negligible in practical terms.

Which ETF is better for long-term investors?

For long-term investors, VOO and IVV are virtually identical. Both charge 0.03% in fees, track the S&P 500, and have delivered the same 15.69% annual returns over the past decade. The only meaningful difference is IVV's slightly higher dividend yield of 1.17% versus VOO's 1.13%, which might matter in a taxable account. Pick whichever one your broker offers commission-free, since performance differences are negligible.