Better S&P 500 ETF: iShares IVV vs. Vanguard VOO
Key Points
Both VOO and IVV track the S&P 500 with identical returns and expense ratios.
IVV offers a slightly higher dividend yield and marginally heavier tech weighting.
Liquidity, risk, and overall portfolio composition are nearly indistinguishable between these two ETFs.
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The Vanguard S&P 500 ETF (NYSEMKT:VOO) and iShares Core S&P 500 ETF (NYSEMKT:IVV) both deliver low-cost exposure to the S&P 500, with matching expense ratios, similar performance, and only minor differences in dividend yield and sector allocation.
For investors considering broad U.S. large-cap coverage, this comparison looks at VOO and IVV — two of the largest, most liquid S&P 500 index ETFs. Both aim to replicate the performance of the S&P 500, but subtle details on yield, sector tilts, and fund size may influence which is a better fit.
Snapshot (cost & size)
| Metric | VOO | IVV |
|---|---|---|
| Issuer | Vanguard | iShares |
| Expense ratio | 0.03% | 0.03% |
| 1-yr return (as of 2026-01-23) | 13.0% | 13.0% |
| Dividend yield | 1.1% | 1.2% |
| Beta | 1.00 | 1.00 |
| AUM | $1.5 trillion | $760.6 billion |
Beta measures price volatility relative to the S&P 500; beta is calculated from five-year weekly returns. The 1-yr return represents total return over the trailing 12 months.
Both funds are equally affordable, charging a 0.03% expense ratio, while IVV offers a slightly higher dividend yield that may appeal to income-focused investors.
Performance & risk comparison
| Metric | VOO | IVV |
|---|---|---|
| Max drawdown (5 y) | -24.52% | -24.53% |
| Growth of $1,000 over 5 years | $1,794 | $1,794 |
What's inside
IVV holds 503 companies and has maintained a 25.7-year track record. Its sector mix tilts slightly more toward technology (43%) compared to VOO, with top holdings including Nvidia (NASDAQ:NVDA), Apple (NASDAQ:AAPL), and Microsoft (NASDAQ:MSFT). The fund mirrors the S&P 500, with no leverage, hedging, or other structural quirks.
VOO, by contrast, holds 505 companies and also tracks the S&P 500, but with a marginally lower technology weighting (35%). Its largest positions are similarly concentrated in Nvidia, Apple, and Microsoft, providing nearly identical exposure for large-cap investors.
For more guidance on ETF investing, check out the full guide at this link.
What this means for investors
A great way to grow your stock portfolio is to invest in the S&P 500. Investors looking to do so have a pair of great choices in the Vanguard S&P 500 (VOO) and iShares Core S&P 500 (IVV) ETFs. Both offer virtually identical performance, costs, and beta.
IVV has a slight advantage in dividend yield while VOO is a bit better in terms of liquidity given its larger assets under management. IVV is a more compelling ETF for investors wanting a greater stake in technology stocks, especially given the booming artificial intelligence industry.
Aside from these subtle differences, both IVV and VOO are excellent ETFs for investors looking for a vehicle to buy and hold S&P 500 stocks for the long haul. The choice between these two primarily comes down to whether you prefer to go with Vanguard or iShares as the issuer.
Otherwise, IVV and VOO are top tier ETFs that, regardless of which you select, can deliver solid long-term returns.
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*Stock Advisor returns as of January 24, 2026.
Robert Izquierdo has positions in Apple, Microsoft, and Nvidia. The Motley Fool has positions in and recommends Apple, Microsoft, Nvidia, and Vanguard S&P 500 ETF. 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.
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