VOO vs IVV: Side-by-Side ETF Comparison

Which is better? VOO and IVV are virtually identical in performance, fees, and holdings, with the main differences being VOO’s association with Vanguard and IVV’s quarterly dividend payouts. In the end, your choice should depend on your brokerage preference, both are excellent S&P 500 ETFs.

Table of Content

ETF Issuers & Investment Objective

When comparing VOO and IVV, it’s important to start with the issuers behind them Vanguard and iShares, two of the most trusted names in the ETF industry.

Vanguard launched VOO (Vanguard S&P 500 ETF) in September 2010 to offer cost-conscious investors a low-fee, passive vehicle to gain exposure to the S&P 500 Index, which tracks 500 of the largest U.S. companies. As part of Vanguard’s broader mission to democratize investing, VOO reflects the firm’s commitment to long-term, low-cost portfolio building.

iShares, a division of BlackRock, created IVV (iShares Core S&P 500 ETF) in May 2000, making it one of the earliest ETFs to track the S&P 500. IVV was introduced to offer institutional-grade indexing to retail and professional investors alike, delivering scalable exposure to the U.S. large-cap equity market.

Both funds were designed to mirror the performance of the same index but emerged from different philosophies and investor bases, giving rise to subtle differences in structure and investor experience.

Annual & Cumulative Returns

The annual and cumulative returns for VOO and IVV are nearly identical across all time periods, with differences typically under 0.05%. This is expected since both ETFs track the same benchmark, the S&P 500, and use similar indexing strategies.

Slight variations can occur due to minor differences in portfolio rebalancing timing, cash drag, and dividend reinvestment policies, but these are negligible for long-term investors.

Overall, the return profiles confirm that either ETF offers virtually the same exposure and performance to the U.S. large-cap equity market.

Risk Metrics

When it comes to risk, VOO and IVV are virtually indistinguishable. Both ETFs exhibit the same 1-year volatility at 11.44% and share an identical 3-year Sharpe ratio of 0.50, indicating a comparable balance of risk and return over time.

Even the 3-year volatility figures are separated by just 0.01%, which is statistically insignificant. These similarities are a direct result of both funds tracking the exact same index, the S&P 500, using highly efficient, large-scale passive management.

For investors, this means that choosing between VOO and IVV won’t come down to risk profile, it will likely be decided by platform preferences or dividend handling.

Explanation:

• Volatility reflects how much the price moves over time higher volatility means more frequent or larger price swings.
• Sharpe Ratio measures risk-adjusted returns: how much return you get for each unit of risk. Higher is better.

Dividend Yield & Growth

Although both VOO and IVV offer similar dividend yields around 1.50%, there are slight nuances worth noting. IVV’s dividend frequency is clearly defined as quarterly, while VOO, though not explicitly listed, also distributes dividends on a quarterly basis like most broad-market Vanguard ETFs.

The small difference in yield (~0.04%) can be attributed to minor variations in fund management timing, cash positions, or rounding differences in how dividends are distributed. These distinctions are minimal and unlikely to affect long-term income investors, but may matter to those who prioritize precision in cash flow planning.

Explanation:

• Dividend Yield is the percentage of the fund's current price that is paid out annually as dividends.

Fees & Liquidity

In terms of fees and trading efficiency, both VOO and IVV deliver exceptionally low costs with an identical expense ratio of 0.03%, making them among the cheapest S&P 500 ETFs available.

However, IVV holds a slight edge in liquidity, with a tighter average bid-ask spread (~0.01%) and higher daily trading volume, largely due to its longer track record and broader institutional adoption since launching in 2000.

VOO, while still highly liquid for most retail investors, may experience marginally wider spreads (~0.02%) during off-peak trading hours. These differences are minor, but for high-frequency or large-volume traders, IVV might offer slightly better execution efficiency.

Explanation:

• Expense Ratio is the annual fee taken by the fund manager, expressed as a % of your investment.
• Bid-Ask Spread is the difference between the buying and selling price. Smaller spreads mean lower transaction costs.

ETF Composition: Asset Classes

Looking at asset class composition, both VOO and IVV stay true to their mandate of tracking the S&P 500 by maintaining over 99% exposure to U.S. stocks, with only minimal allocations to non-U.S. equities and cash.

These small deviations, such as VOO holding slightly more cash (0.18%) or IVV showing a near-zero net cash position are typically the result of day-to-day fund operations like rebalancing or dividend accruals.

Since neither fund holds bonds or alternative assets, they provide pure large-cap U.S. equity exposure. For investors seeking straightforward market tracking without unintended asset class drift, both ETFs remain tightly aligned with their benchmark.

Regional Allocation

The regional breakdown of both VOO and IVV confirms their near-total focus on the U.S. market, with 99.48% of assets allocated to North America, a direct reflection of the S&P 500’s composition.

Minor exposure to regions like Europe Developed (0.43%) and the UK (0.04%) is not intentional diversification but rather a byproduct of multinational companies with dual listings or operational presence abroad.

The “Other” category remains negligible (under 0.10%) and does not meaningfully impact the funds’ geographic exposure. For investors seeking pure-play U.S. equity exposure, both ETFs deliver exactly that with almost no deviation.

Sector Weights

While sector allocations in VOO and IVV are nearly identical, as expected for two funds tracking the same index, there are small fluctuations that arise from differences in rebalancing schedules and data reporting timing.

For example, IVV currently shows slightly more weight in Technology (33.07%) and Consumer Cyclical sectors, while VOO leans a bit more into Healthcare and Consumer Defensive stocks.

These differences don’t reflect strategic shifts but are normal drift within passive index funds that rebalance periodically. For most investors, these minor variations won’t impact performance or exposure in any meaningful way.

Top 10 Holdings

The top 10 holdings of VOO and IVV are virtually identical, not surprising, given that both track the same S&P 500 index. The ordering and weighting differ slightly, with IVV currently showing a heavier allocation to Microsoft, NVIDIA, and Amazon, while VOO places slightly more weight on Apple and Berkshire Hathaway.

These minor variations are the result of timing differences in portfolio updates and share price fluctuations at the time of reporting. Despite these discrepancies, the concentration in mega-cap tech and consumer companies is consistent across both ETFs, reinforcing their exposure to the dominant drivers of U.S. equity market performance.

Valuation & Growth Metrics

Valuation Ratios

The valuation metrics for VOO and IVV are nearly the same, with only fractional differences across P/E, price-to-book, and other ratios. These slight gaps can stem from timing of data collection or minor differences in how dividends and cash components are accounted for.

Both ETFs offer a broad, tech-heavy slice of the U.S. market, so their valuations reflect the same underlying fundamentals, primarily strong earnings growth and high investor demand for large-cap equities.

Explanation:

• P/E Ratio = Price divided by earnings. Indicates how expensive a fund is relative to profits.
• Price/Book = Price vs book value (assets minus liabilities).
• Price/Sales = Price relative to total revenue.
• Price/Cash Flow = Price relative to how much cash the companies generate.

Growth Expectations

Growth rates indicate strong expectations for earnings, sales, and book value across both ETFs. These numbers support a growth-tilted long-term thesis, driven by the strong fundamentals of the underlying companies.

Which ETF Fits Your Portfolio - VOO vs IVV?

When it comes to choosing between VOO (Vanguard S&P 500 ETF) and IVV (iShares Core S&P 500 ETF), the truth is, you can't go wrong with either. Both ETFs track the same index (S&P 500), have nearly identical historical returns, sector allocations, risk profiles, and growth expectations. They’re built for long-term U.S. equity exposure, making them ideal core holdings for retirement accounts, taxable portfolios, or general wealth building.

That said, a few subtle differences may help you decide based on personal preferences or platform logistics:

Use VOO if you're already invested with Vanguard, prefer their investor-owned structure, or want to consolidate accounts under one provider.

Go with IVV if you’re trading through Fidelity, Charles Schwab, or platforms that favor BlackRock's iShares lineup, or if you're an institutional investor seeking slightly higher liquidity and tighter bid-ask spreads.

The decision comes down to access, ecosystem, and tiny operational nuances. For the average investor, these two funds are functionally interchangeable, and choosing one over the other will likely have zero impact on your long-term performance. Pick the one that aligns best with your broker, habits, or portfolio structure.