VOO vs. IVV: Which Popular S&P 500 ETF Is the Better Buy for Investors?
Key Points
iShares Core S&P 500 ETF and Vanguard S&P 500 ETF share identical expense ratios and trailing-12-month dividend yields.
Vanguard S&P 500 ETF manages significantly higher assets under management than iShares Core S&P 500 ETF.
Both funds maintain heavy concentrations in the technology sector and show identical five-year maximum drawdowns.
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The primary distinction between iShares Core S&P 500 ETF (NYSEMKT:IVV) and Vanguard S&P 500 ETF (NYSEMKT:VOO) lies in their issuer and assets under management, as both provide identical expense ratios and performance.
Both iShares Core S&P 500 ETF and Vanguard S&P 500 ETF serve as cornerstone investments for millions of portfolios. They track the same benchmark, the S&P 500 Index, which covers roughly 80% of the available market capitalization of the U.S. equity market. Because they aim for the same target, the choice often comes down to brand preference or existing brokerage relationships rather than fundamental strategy differences.
Snapshot (cost & size)
| Metric | IVV | VOO |
|---|---|---|
| Issuer | iShares | Vanguard |
| Expense ratio | 0.03% | 0.03% |
| 1-yr return (as of June 12, 2026) | 24.40% | 24.40% |
| Dividend yield | 1.10% | 1.10% |
| Beta | 1.00 | 1.00 |
| AUM | $802.0 billion | $1.7 trillion |
Beta measures price volatility relative to the S&P 500; beta is calculated from five-year monthly returns. The 1-yr return represents total return over the trailing 12 months. Dividend yield is the trailing-12-month distribution yield.
Both ETFs are among the most cost-efficient funds on the market, each carrying a 0.03% expense ratio. This means an investor pays just $0.30 annually for every $1,000 invested. Additionally, both funds reported an identical trailing-12-month dividend yield of 1.10%, making them virtually indistinguishable regarding income potential and ongoing costs for long-term shareholders.
Performance & risk comparison
| Metric | IVV | VOO |
|---|---|---|
| Max drawdown (5 yr) | (24.50%) | (24.50%) |
| Growth of $1,000 over 5 years (total return) | $1,877 | $1,877 |
What's inside
The Vanguard S&P 500 ETF (VOO) was launched in 2010 and currently manages 505 positions. Its sector concentration includes technology at 36.00%, financial services at 12.00%, and communication services at 11.00%. Its largest positions include Nvidia (NASDAQ:NVDA) at 7.90%, Apple (NASDAQ:AAPL) at 7.05%, and Microsoft (NASDAQ:MSFT) at 5.15%. Over the trailing 12 months, it paid $7.13 per share in dividends. The fund is designed for long-term growth and displays no significant quirks in its structure.
In comparison, the iShares Core S&P 500 ETF (IVV) has a slightly longer history, having launched in 2000. It manages 504 holdings with a similar sector profile: technology at 39.00%, financial services at 11.00%, and communication services at 11.00%. Its top positions include Nvidia at 7.81%, Apple at 6.69%, and Microsoft at 4.54%. It has a trailing-12-month dividend of $8.06 per share. Like its counterpart, it tracks its benchmark index closely without any complex leverage or resets.
For more guidance on ETF investing, check out the full guide at this link.
What this means for investors
Some investment decisions reward careful research. This is not one of them. VOO and IVV are as close to identical as two separate financial products can be, tracking same index, same expense ratio, same top holdings, same performance over every meaningful time horizon. Over the past 10 years, the annualized return difference between them rounds to zero for any practical purpose.
Both funds are among the largest and most liquid ETFs in the world, backed by two of the most trusted names in index investing. VOO holds roughly twice the assets of IVV, which can provide a marginal liquidity edge for large transactions, but it’s a distinction that matters far more to institutions than to everyday investors.
For most long-term investors, the most sensible approach is to choose whichever fund is offered commission-free on your existing brokerage platform. Vanguard investors will naturally gravitate toward VOO. Everyone else will find IVV an equally excellent home for S&P 500 exposure.
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Sara Appino has positions in Apple and Nvidia. The Motley Fool has positions in and recommends Apple, Microsoft, Nvidia, and Vanguard S&P 500 ETF. The Motley Fool has a disclosure policy.
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