IVV vs VOO: Comparing S&P 500 Index ETFs

This article compares IVV vs VOO — iShares Core S&P 500 ETF and Vanguard’s S&P 500 ETF. 

Both are passively managed index ETFs popular with passive investors looking to match market returns.

The funds are excellent for dollar-cost averaging and compounding interest. 

Index ETFs track market indexes, such as the Dow Jones Industrial Average or the Russell 2000. 

IVV and VOO track the most widely-watched U.S. stock market index: Standard & Poor’s 500.

Both funds own shares of the 500 largest U.S. companies and pay quarterly dividends. 

Bottom Line Upfront (BLUF)

Before I get into the details of IVV vs VOO, it’s essential to keep the following in mind:

• The funds are virtually identical. Don’t overthink your selection.
• Both funds are excellent, low-fee stock index fund options for your portfolio and cost less than SPY (see below).
• IVV is an iShares by Blackrock ETF. VOO is a Vanguard ETF. Choose based on your asset manager preference. 
• Both ETFs are available to purchase from any online broker.
• If you have an account with Vanguard or Fidelity, you can own similar mutual funds (see the mutual funds section). Fidelity has a partnership with iShares. 

Please note that both ETFs update their prospectuses regularly. The information referenced in this article will change over time.

The best resource for both funds is the respective company’s websites.

Here are links to the most updated information at Schwab and Vanguard. Consider the information on those pages to be the authoritative data source.

• iShares Core S&P 500 ETF (IVV)
• Vanguard’s S&P 500 Index ETF (VOO)

IVV vs VOO Comparison

Side-by-Side

Here’s a side-by-side comparison of both ETFs. Scroll right on mobile.

A few noticeable differences comparing IVV vs VOO:

• IVV is an older fund tracing back to the year 2000. 
• IVV is slightly larger, and the price point is higher (though both are insignificant attributes in an investment decision). 
• The funds are virtually identical and perform as such. 

Benchmark Indexes

IVV and VOO track the S&P 500 Index, one of the most widely-watched stock indexes worldwide.

Visit this page for the latest information about the index.

The S&P 500 Index is a float-adjusted market cap-weighted index, meaning the largest stocks make up a proportionately high percentage of the index. Lower market cap stocks comprise a proportionately lower percentage of the index. 

A selection committee of financial market professionals chooses which stocks go into the index. The focus is primarily on large-cap stocks that are representative of the U.S. economy.

The committee does not try to “pick stocks” for market outperformance. Instead, they look at company size, stock liquidity, share float, and profitability, and it fits the index’s goal to reflect the broad, large-cap marketplace accurately.

Performance Chart

Here is a daily updated chart of the performance of a $10,000 investment in both IVV vs VOO over ten years. Scroll right on mobile.

Note that this chart shows the net asset value (NAV) price performance of each ETF after dividend payments. 

Past performance is not indicative of future results. 

The funds have performed in tandem as expected because they track the same index and carry the same expense ratios.

Either fund is suitable as a foundational stock ETF in your portfolio. 

See the table above for up-to-date three-, five-, and ten-year average annual performance records.

Dividend Payout Schedules

Both IVV and VOO pay quarterly dividends. 

Investors receive quarterly dividend payments in March, June, September, and December.

Top Ten Holdings

Here are the top ten holdings for each index fund. Visit the links at the beginning of the article for the most updated lists. 

Learn more about VOO’s biggest holdings.

Though the funds are nearly identical, the timing of reporting and transactions may vary causing slight imbalances between funds. 

Mutual Fund Equivalents

Here are the closest mutual fund equivalents for both ETFs.

• IVV = FXAIX (Fidelity)
• VOO = VFIAX (Vanguard)

The IVV mutual fund equivalent at Fidelity is the 500 Index Fund (FXAIX). Investors with an account at Fidelity who prefer mutual funds can consider this fund an IVV alternative.

iShares and Fidelity have an active relationship tracing back more than a decade. Fidelity offered multiple iShares ETFs commission-free when trading commissions were still in effect at most online brokers.

Fidelity promotes iShares ETFs to customers, and iShares suggests purchasing them at Fidelity. There are no longer any cost savings associated with the partnership. 

The VOO mutual fund equivalent at Vanguard is the S&P 500 Index Fund Admiral Shares (VFIAX). Investors with an account at Vanguard who prefer mutual funds can consider this fund a VOO alternative.

Customers of online brokers that charge fees for mutual funds should use the VOO or IVV ETFs.

Mutual funds trade differently than ETFs, which trade like stocks. 

ETFs are easier to own, and the price changes throughout the day. Mutual funds only trade at the market close. 

Active investors typically use ETFs for trading purposes or to buy and hold indexes when they can’t access index mutual funds.

For example, if you have an investing account with a mobile investing app, you’d invest via ETFs instead of mutual funds. If your account is with Vanguard, you may benefit from using the index fund VFIAX because it’s slightly easier to reinvest capital gains and dividends. 

• Learn more about FXAIX here
• Learn more about VFIAX here 

Use the above resources to find the most up-to-date information regarding FXAIX vs VFIAX.

IVV vs VOO vs SPY

The State Street SPDR VOO equivalent is the SPDR S&P 500 ETF Trust (SPY).

The State Street SPDR IVV equivalent is the SPDR S&P 500 ETF Trust (SPY).

SPY is the largest ETF of the three. 

However, the three ETFs are virtually identical, aside from the SPY expense ratio, which is three times that of IVV and VOO at 0.09.

Own either IVV or VOO to save 0.06 in fees. 

Best Broker to Buy IVV or VOO

Charles Schwab and Vanguard are excellent choices for long-term retirement investors. You’re in good hands if your IRA or employer-sponsored plan is with either broker.

Here are my favorite online brokers for investing in ETFs and automatically reinvesting dividends. 

Conclusion

Deciding between IVV vs VOO depends on your preference for iShares/Blackrock and Fidelity or Vanguard.

These are three of the largest asset managers in the world. 

Aside from the fund administrator, there are no other significant distinguishers between IVV and VOO. 

Don’t overthink your selection. Returns, fees, liquidity, and dividends will be identical. 

Purchase either ETF at any commission-free online broker. 

Please reply with your questions regarding IVV vs VOO in the comments section below. Include any requests you have about adding more detail to this article. 

Read more:

• VOO vs VTI
• SCHD vs VOO
• FXAIX vs VOO
• SPY or VOO?
• QQQ or VOO?

Disclosure: The author does not own either fund but may own a position in the top ten holdings of each fund. 

Craig Stephens

Craig is a former IT professional who left his 19-year career to be a full-time finance writer. A DIY investor since 1995, he started Retire Before Dad in 2013 as a creative outlet to share his investment portfolios. Craig studied Finance at Michigan State University and lives in Northern Virginia with his wife and three children. Read more.