iShares Core S&P 500 ETF vs. SPDR Portfolio S&P 500 ETF: One Offers Scale While the Other Boasts Lower Fees

iShares Core S&P 500 ETF (NYSEMKT:IVV) seeks to track the investment results of an index composed of large-capitalization U.S. equities, while SPDR Portfolio S&P 500 ETF (NYSEMKT:SPLG) aims to mirror the performance of the S&P 500 Index, providing investors with diversified access to large-cap U.S. equities. This comparison focuses on subtle differences in cost, size, and trading features that could matter for some investors.

Snapshot (cost & size)

Beta measures price volatility relative to the S&P 500; figures use five-year monthly returns.

The SPDR fund is marginally more affordable with a lower expense ratio, while each fund offers a dividend yield of 1.1%. IVV boasts a much higher assets under management (AUM), which could appeal to those seeking maximum scale and liquidity.

Performance & risk comparison

What's inside

iShares Core S&P 500 ETF holds 503 securities and has a 25-year history. Its sector exposure is led by technology (36%), financial services (13%), and consumer discretionary (10%), and its top holdings include Nvidia, Apple, and Microsoft, each representing less than 10% of the portfolio. IVV’s long history, large size, and typical S&P 500 composition make it a staple for many investors.

Because it tracks the same index, the SPDR Portfolio S&P 500 ETF offers similar sector weights and portfolio makeup. This ETF's approach mirrors IVV’s, though it comes from a different issuer and is part of the low-cost SPDR Portfolio ETF suite.

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Foolish take

The iShares Core S&P 500 ETF and SPDR Portfolio S&P 500 ETF are similar in many ways. They both track the S&P 500 index, so they have nearly identical holdings and performance.

The two notable differences between them are the expense ratio and AUM. The SPDR fund offers a slightly lower expense ratio of 0.02% versus 0.03% for iShares. With these two expense ratios, you'll pay $2 or $3 per year, respectively, in fees for every $10,000 in your account. While it's a marginal difference, it can add up over time -- especially for investors with large account balances.

Compared to SPDR, the iShares fund has a much larger AUM. That's not necessarily a good or bad thing, but it can make a difference for investors looking for greater scale and liquidity. For long-term investors who plan to buy and hold for decades, the AUM may not make a significant difference in your strategy.

Glossary

ETF: Exchange-traded fund; a pooled investment fund traded on stock exchanges, holding a basket of assets.
Expense ratio: The annual fee, as a percentage of assets, that a fund charges to cover operating costs.
Dividend yield: The annual dividends paid by a fund, expressed as a percentage of its current price.
Beta: A measure of an investment's volatility relative to the overall market, typically the S&P 500.
AUM: Assets under management; the total market value of assets a fund manages on behalf of investors.
Max drawdown: The largest percentage drop from a fund's peak value to its lowest point over a specific period.
Sector exposure: The proportion of a fund's assets invested in specific industry sectors, such as technology or financial services.
Issuer: The company or financial institution that creates and manages the investment fund.
Holdings: The individual securities or assets owned by a fund.

Katie Brockman has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends Apple, Microsoft, and Nvidia. The Motley Fool recommends the following options: long January 2026 $395 calls on Microsoft and short January 2026 $405 calls on Microsoft. The Motley Fool has a disclosure policy.