VOO vs IVV: Best S&P 500 ETF

We compare VOO vs IVV:

Vanguard S&P 500 ETF (VOO) vs iShares Core S&P 500 ETF (IVV)

Both are among the best S&P 500 Exchange Traded Funds (ETFs).

This article will help you decide between VOO vs IVV.

 

VOO vs IVV

The primary difference between VOO and IVV is the company that offers the exchange-traded fund (ETF).  Vanguard offers VOO, while Blackrock offers IVV.

Vanguard offers VOO

Blackrock offers IVV

These S&P 500 ETFs have the same expense ratio of 0.03%.  They also have close to the same amount of holdings, 500.

Lastly, both VOO and IVV track the S&P 500 Index.

VOO

• Offered By Vanguard
• Tracks the S&P 500 Index
• Expense Ratio 0.03%
• Holds 508 Stocks
• Broad-Based Stable Passive ETF
• Equivalent Admiral Fund (VFIAX)
• Dividend Yield: 1.35%

IVV

• Offered By Blackrock
• Tracks the S&P 500 Index
• Expense Ratio 0.03%
• Holds 500 Stocks
• Dividend Yield: 1.33%

 

VOO vs IVV Performance

VOO and IVV have had the same performance over the last 10 years.  This is because they both track the same index (S&P 500 index).

The total return for VOO over the last 10 years is 14.56% per year.  The total return for IVV over the last 10 years is 14.55%.

No significant difference!

Here is a performance comparison for VOO and IVV:

Here is their performance over the last year:

The chart shows how VOO and IVV’s performance is identical.

Similarities between IVV and VOO:

• Low Expense Ratios (0.03% vs 0.03%)
• Performance
• Tracks The S&P 500 Index
• Number Of Holdings

 

VOO vs IVV Holdings

VOO and IVV have the same holdings.  They are also weighted the same, with VOO having 28% in technology and the same for IVV.

IVV and VOO are broad-based funds diversified in several market sectors.

Here are both VOO and IVV Holdings:

The top 10 holdings for VOO and IVV are the same.

This is expected since they aim to track the same index.

 

VOO and IVV Holdings Overlap

There is a significant overlap between VOO and IVV that includes 503 stocks.  There is a 99% overlap between VOOs and IVVs.

Here are VOO and IVV holdings overlap:

There is an overlap by weight of about 99%:

This means both VOO and IVV essentially hold the same companies and weight.

 

VOO and IVV Differences

The main difference between VOO and IVV is the company that offers the exchange-traded fund (ETF).  Vanguard offers VOO, while Blackrock offers IVV.

There is also a difference in where they can be purchased commission-free.

VOO is commission-free through investment platforms like Vanguard, M1 Finance, or Robinhood.

IVV is available commission-free with Fidelity.

Lastly, there is a big difference in net assets between VOO and IVV.

VOO has $816 billion in net assets compared to $317 billion with IVV.

This gives VOO more liquidity.

Differences between VOO and IVV:

• Offering Brokerage (Vanguard vs Blackrock)
• Where You Can Buy The Fund
• Net Assets

 

IVV vs VOO Dividend

IVV and VOO have similar dividend yields.  VOO has a current dividend yield of 1.35%, while IVV has a current dividend yield of 1.33%.

Both IVV and VOO pay dividends quarterly.

 

VOO Profile

• Fund Inception: 2010
• Expense Ratio: 0.03%
• Number Of Stocks: 508
• Top 10 Holdings: 30%
• Dividend Yield: 1.35%
• Equivalent Admiral Fund (VFIAX)

Vanguard S&P 500 ETF (VOO) is a very popular ETF that tracks the S&P 500 index.  VOO has over $816 billion in fund total net assets.

The fund invests in technology, healthcare, financials, industrials, and other industries and has a very low expense ratio.

 

VOO Performance

Vanguard’s VOO aims to have the same performance returns as the S&P 500 index.  VOO and the S&P 500 should always overlap.

Here is VOO and the S&P 500 Index performance chart:

VOO (Blue)                S&P 500 (Yellow)

As you can see, VOO and the S&P 500 overlap in performance.

This should be an expectation in the future.

 

VOO Top 10 Holdings

Vanguard’s VOO comprises Apple, Microsoft, Alphabet, Amazon, and Tesla but also provides exposure to over 500 other stocks.

 

No Minimum Investment

VOO and IVV are exchange-traded funds (ETFs), so there is no minimum investment.  Investors looking to buy fractional shares can use platforms like M1 Finance.

Typically, fractional shares are not available for ETFs, but with M1 Finance, you can purchase fractional shares with no commission.

Buying fractional shares allows you to maximize your investment.  This is great for shares of IVV or VOO due to their high prices per share.

There are two easy ways to invest in VOO or IVV commission-free.

1. Vanguard to invest in VOO.
2. M1 Finance to invest in either VOO or IVV. (Use this link for $100 when you open a new account)

Both of these options are free.  This is important because fees can lower our returns.

M1 Finance is the best option because it lets you purchase VOO, IVV, and thousands of other stocks.

I also use Personal Capital to track my investment fees. They have a free Retirement Fee Analyzer that tells you the future impact of fees on your portfolio.

Personal Capital’s free tools allow you to quickly find which of your investments has high fees so you can switch them to low-cost options.  (Get a $20 Amazon Gift Card with this link when you add at least one investment account containing a balance of more than $1,000 within 30 days)

 

IVV Profile

• Fund Inception: 2000
• Expense Ratio: 0.03%
• Number Of Stocks: 500
• Top 10 Holdings: 30%
• Dividend Yield: 1.33%

iShares Core S&P 500 ETF (IVV) is an excellent S&P 500 ETF tracking the S&P 500 index since 2000.

IVV has over $317 billion in fund total net assets.

Blackrock offers the fund with its Ishares core ETFs.  IVV has an expense ratio of 0.03%, making it a low-cost ETF.

 

IVV Performance

Blackrock’s IVV aims to have the same performance returns as the S&P 500 index.  Therefore, IVV and the S&P 500 should always overlap.

Here is IVV’s performance:

Here is IVV’s performance chart:

As you can see, IVV has performed well since its inception.

 

IVV Top 10 Holdings

Blackrock’s IVV comprises Apple, Microsoft, Alphabet, Amazon, and Tesla but also provides exposure to over 500 other stocks.

 

Which is Better VOO or IVV?

VOO and IVV are identical in performance.  They offer exposure to the S&P 500 at a low expense ratio of 0.03%.  Which is better depends on the brokerage you use.

VOO would be best for Vanguard account holders.

IVV would be best for Fidelity or Blackrock account holders.

Alternatively, both VOO and IVV can be purchased commission-free with M1 Finance.

It’s critical investors purchase IVV or VOO commission-free.  Fees can take away from your portfolio returns and compound over time.

IVV and VOO will perform the same over the next 10 years with an equal expense ratio.

I would give the edge to VOO because Vanguard has a proven track record of lowering investment costs.

VOO also provides more liquidity with over $816 billion in net assets.

That’s why I give the edge to VOO.

Similar Comparisons:

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• VT vs VOO
• SCHB vs VOO
• VIG vs VOO

 

Is VOO or IVV Better for Financial Independence?

VOO and IVV can get you to Financial Independence Retire Early (FIRE).  They have performed well over the last 10 years and have low expense ratios.

Being part of the FIRE community, we aim for the lowest fees possible and are big fans of Vanguard.

For those reasons, I prefer VOO over IVV.

 

My Winner: VOO

My winner is VOO based on being able to invest in it in various ways.

I am also confident Vanguard will continue to offer low-cost investment options.

You can also check out the FIRE community’s favorite ETF VTI.