iShares Core S&P 500 ETF offers a significantly lower expense ratio than State Street SPDR S&P 500 ETF.
Both funds track the S&P 500 index, resulting in nearly identical volatility and long-term performance.
iShares Core S&P 500 ETF has more assets under management (AUM) and maintains a slightly higher dividend yield than its counterpart.
iShares Core S&P 500 ETF (NYSEMKT:IVV) provides more affordable access to the S&P 500 than State Street SPDR S&P 500 ETF (NYSEMKT:SPY), offering a lower expense ratio and a higher distribution yield.
Both funds aim to mirror the performance of the S&P 500, the primary benchmark for the U.S. large-cap market. While the State Street trust is the industry's oldest and most liquid trading tool, the iShares fund has grown significantly by appealing to long-term investors through its cost efficiency. This match-up explores whether the lower-cost option is the more effective building block for a portfolio.
| Metric | SPY | IVV |
|---|---|---|
| Issuer | SPDR | iShares |
| Share price | $771.79 (as of 2026-10-15) | $775.16 (as of 2026-10-15) |
| Expense ratio | 0.09% | 0.03% |
| 1-yr return (as of 2026-10-15) | 17.3% | 17.4% |
| Dividend yield | 1.0% | 1.1% |
| Beta | 1.00 | 1.00 |
| AUM | $812.7 billion | $886.8 billion |
Beta measures price volatility relative to the S&P 500; beta is calculated from monthly returns over the available fund history (up to five years). The 1-yr return represents total return over the trailing 12 months. Dividend yield is the trailing-12-month distribution yield.
The iShares fund is noticeably more affordable, charging just 0.03% compared to the 0.09% fee for the State Street trust. This expense gap of 0.06 percentage points can compound over time, contributing to the iShares fund's higher distribution yield.
| Metric | SPY | IVV |
|---|---|---|
| Max drawdown (5 yr) | (24.5%) | (24.5%) |
| Growth of $1,000 over 5 years (total return) | $1,851 | $1,856 |
iShares Core S&P 500 ETF provides exposure to the U.S. large-cap market with a heavy tilt toward information technology at 40%, followed by financials at 11%, and communication at 10%. It holds 505 securities, and its largest positions include Nvidia (NASDAQ:NVDA) at 7.86%, Apple (NASDAQ:AAPL) at 7.47%, and Microsoft (NASDAQ:MSFT) at 5.99%. It was launched in 2000. iShares Core S&P 500 ETF has paid $8.40 per share over the trailing 12 months, which on its recent ~$775.2 share price works out to a 1.1% yield.
State Street SPDR S&P 500 ETF maintains a nearly identical portfolio, with technology at 41%, financial services at 11%, and communication services at 10%. It holds 504 securities, and top holdings include Nvidia at 7.86%, Apple at 7.46%, and Microsoft at 5.99%. It was launched in 1993. State Street SPDR S&P 500 ETF has paid $7.58 per share over the trailing 12 months, which on its recent ~$771.8 share price works out to a 1% yield.
For more guidance on ETF investing, check out the full guide at this link.
There is plenty to consider when deciding which ETF deserves a place in your portfolio. Investors must weigh several factors, including returns, dividends, and costs. However, when comparing the iShares Core S&P 500 ETF and the SPDR S&P 500 ETF Trust, the decision largely comes down to fees.
Both funds track the S&P 500, providing exposure to 500 of the largest U.S. companies. Their nearly identical holdings mean investors can expect similar long-term performance and dividend income. Where the two funds differ, however, is in their expense ratios.
With an annual expense ratio of just 0.03%, IVV charges one-third of SPY's 0.09%. While that difference might seem insignificant, even small fees can add up over decades of investing, particularly as portfolios grow.
For long-term investors looking for straightforward, low-cost exposure to America's largest companies, IVV gets the nod. SPY's exceptional liquidity remains valuable for active traders, but buy-and-hold investors have little reason to pay three times as much for essentially the same exposure.
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RJ Fulton has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends Apple, Microsoft, and Nvidia. The Motley Fool has a disclosure policy.