VOO vs. IVV: Which Popular S&P 500 ETF Is the Better Buy for Investors?
Key Points
IVV and VOO offer the same expense ratio and nearly identical one- and five-year total returns.
VOO boasts a much higher assets under management (AUM), which can provide greater liquidity.
Both funds track 500 of the largest U.S. companies with nearly identical sector weights.
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The iShares Core S&P 500 ETF (NYSEMKT:IVV) and the Vanguard S&P 500 ETF (NYSEMKT:VOO) both serve as foundational building blocks for long-term portfolios by tracking the S&P 500 index.
While they share the same objective and cost structure, subtle differences distinguish these two industry giants for individual investors.
Snapshot (cost & size)
| Metric | IVV | VOO |
|---|---|---|
| Issuer | iShares | Vanguard |
| Expense ratio | 0.03% | 0.03% |
| 1-yr return (as of May 23, 2026) | 29.47% | 29.43% |
| Dividend yield | 1.12% | 1.08% |
| Beta (5Y monthly) | 1.00 | 1.00 |
| Assets under management (AUM) | $797.5 billion | $1.6 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.
With matching 0.03% expense ratios, cost is not a differentiator between these two market leaders. While both funds offer consistent income streams, IVV offers a marginally higher dividend yield.
Performance & risk comparison
| Metric | IVV | VOO |
|---|---|---|
| Max drawdown (5 yr) | -24.52% | -24.53% |
| Growth of $1,000 over 5 years (total return) | $1,930 | $1,930 |
What's inside
VOO holds just over 500 stocks and was launched in 2010. It is designed to track the S&P 500, offering broad exposure to the domestic equity market. Its sector allocation is currently led by technology at around 36% of assets, followed by financial services at 12% and communication services at 11%, and its top holdings include Nvidia, Apple, and Microsoft.
IVV also tracks the S&P 500, so it’s similar to VOO in many ways. Its top sector allocations and top three stocks match VOO’s, but it was launched in 2000, giving it a longer operating history.
For more guidance on ETF investing, check out the full guide at this link.
What this means for investors
IVV and VOO both track the same underlying index, so there are few characteristics that set them apart.
With the same expense ratios and virtually identical max drawdowns and one- and five-year total returns, investors won’t see a meaningful difference in fees, risk, or investment earnings. IVV does offer a marginally higher dividend yield, however, which could add up over time for investors with large account balances.
Perhaps the most significant difference between the two funds is assets under management (AUM). VOO has a much larger AUM of around $1.6 trillion compared to IVV’s $798 billion. While both of these massive ETFs provide ample liquidity, VOO has the edge for investors looking to buy or sell large amounts at a time.
For most everyday investors, AUM won’t necessarily be a selling point — especially when both funds are among the largest in the industry. But because these ETFs are identical in most other ways, AUM, dividend yield, and preferences on brokerages will likely be the deciding factors for investors.
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Katie Brockman has positions in Vanguard S&P 500 ETF. 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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