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<h2>Key Points</h2><ul><li>IVV offers a lower expense ratio and higher dividend yield than SPY.</li><li>Both ETFs track the S&amp;P 500 and deliver nearly identical sector exposure, holdings, and recent performance.</li><li>IVV boasts greater assets under management and matches SPY in liquidity and risk metrics.</li><li>10 stocks we like better than iShares Core S&amp;P 500 ETF ›</li></ul><p>The <strong>iShares Core S&amp;P 500 ETF</strong> (<strong>NYSEMKT: IVV</strong>) and the <strong>State Street SPDR S&amp;P 500 ETF Trust</strong> (<strong>NYSEMKT: SPY</strong>) both track the S&amp;P 500 Index, but IVV stands out with a lower expense ratio, a higher yield, and greater assets under management.</p><p>Both IVV and SPY provide exposure to large-cap U.S. equities by tracking the S&amp;P 500. This comparison explores which fund may appeal more to investors seeking efficient, low-cost access to the U.S. stock market, focusing on practical differences in cost, performance, risk, and portfolio structure.</p><h2 id="snapshot-cost-amp-size">Snapshot (cost &amp; size)</h2><section><table><tbody><tr><th>Metric</th><th>SPY</th><th>IVV</th></tr><tr><td>Issuer</td><td>State Street</td><td>iShares</td></tr><tr><td>Expense ratio</td><td>0.0945%</td><td>0.03%</td></tr><tr><td>1-yr return (as of 2026-03-24)</td><td>15.08%</td><td>15.19%</td></tr><tr><td>Dividend yield</td><td>1.13%</td><td>1.23%</td></tr><tr><td>Beta</td><td>1.00</td><td>1.00</td></tr><tr><td>AUM</td><td>$664.1 billion</td><td>$701.9 billion</td></tr></tbody></table></section><p><em>Beta measures price volatility relative to the S&amp;P 500; beta is calculated from five-year monthly returns. The 1-yr return represents total return over the trailing 12 months.</em></p><p>IVV is more affordable, charging just 0.03% in annual fees compared to SPY’s 0.09%, and also offers a slightly higher yield, which may appeal to cost-conscious investors seeking the best possible net returns.</p><h2 id="performance-amp-risk-comparison">Performance &amp; risk comparison</h2><section><table><tbody><tr><th>Metric</th><th>SPY</th><th>IVV</th></tr><tr><td>Growth of $1,000 over 5 years</td><td>$1,805</td><td>$1,811</td></tr><tr><td>Max 5-year drawdown</td><td>(24.50%)</td><td>(24.52%)</td></tr></tbody></table></section><h2 id="whatx27s-inside">What's inside</h2><p>IVV tracks the S&amp;P 500, providing exposure to 503 large-cap U.S. stocks. Top sector weightings include information technology (33%), financial Services (12%), and communication services (10%). Its largest positions are <strong>Nvidia</strong> <span class="ticker">(NASDAQ:NVDA)</span> at 7.5%, <strong>Apple</strong> <span class="ticker">(NASDAQ:AAPL)</span> at 6.5%, and <strong>Microsoft</strong> <span class="ticker">(NASDAQ:MSFT)</span> at 4.9%. With 26 years of history, IVV offers a mature, straightforward approach with no leverage, currency hedging, or other structural quirks.</p><p>SPY offers nearly identical sector and holdings exposure, with the same top three companies and sector weights. Both funds are designed to mirror the S&amp;P 500’s composition so that investors can expect virtually the same portfolio makeup and risk profile from either option.</p><p>For more guidance on ETF investing, check out the full guide at this link.</p><h2 id="what-this-means-for-investors">What this means for investors</h2><p>Clearly, not all index funds are built the same. Choosing which one to buy is an important decision, since it’s likely going to be the one you are going to use to grow your wealth for decades. Minor cost differences, as measured by the expense ratio, can add up over time.</p><p>IVV’s higher dividend yield is certainly a bonus, but investors shouldn’t make the yield their deciding factor. Yields can fluctuate with changes in price and sector weightings in these funds’ holdings. The expense ratio is where the rubber meets the road.</p><p>The value of selecting the fund with the lowest expense ratio is evident in looking at past returns. Over the last five years, IVV returned 81.12% (including dividends), beating SPY’s gain of 80.52%. Going back 10 years, the difference widens a bit further, with IVV up 280.9% to SPY’s 278.8%. </p><p>As long as IVV’s expense ratio is lower, that return difference will continue to widen over many years. For example, a $50,000 investment in IVV at its 2000 inception would be worth $371,140 today, compared to $357,230 in SPY. IVV would have made an investor $13,910 richer.</p><p>The cost difference is the single most important difference between these index funds. SPY usually gets all the attention since it has been around the longest. Still, IVV’s lower expense ratio gives it a massive edge in delivering superior returns to investors over the long term.</p><p></p><h2>Should you buy stock in iShares Core S&amp;P 500 ETF right now?</h2>
<p>Before you buy stock in iShares Core S&amp;P 500 ETF, consider this:</p>
<p>The <em>Motley Fool Stock Advisor</em> analyst team just identified what they believe are the <strong>10 best stocks</strong> for investors to buy now… and iShares Core S&amp;P 500 ETF wasn’t one of them. The 10 stocks that made the cut could produce monster returns in the coming years.</p>
<p>Consider when <strong>Netflix</strong> made this list on December 17, 2004... if you invested $1,000 at the time of our recommendation, <strong>you’d have $490,325</strong>!* Or when <strong>Nvidia</strong> made this list on April 15, 2005... if you invested $1,000 at the time of our recommendation, <strong>you’d have $1,074,070</strong>!*</p>
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<p style="color: #767676; text-align: left"><em>*Stock Advisor returns as of March 25, 2026. </em></p><p><em>John Ballard has positions in Nvidia. The Motley Fool has positions in and recommends Apple, Microsoft, and Nvidia and is short shares of Apple. The Motley Fool has a disclosure policy.</em></p>
<p>The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.</p>
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<p>The iShares Core S&P 500 ETF (IVV) and the SPDR S&P 500 ETF Trust (SPY) both track the S&P 500 Index but differ in key metrics. IVV has a lower expense ratio (0.03% vs. 0.09%), a higher dividend yield (1.23% vs. 1.13%), and greater assets under management ($701.9 billion vs. $664.1 billion). Over the past five years, IVV outperformed SPY with returns of 81.12% compared to 80.52%. While both ETFs provide similar exposure to large-cap U.S. equities, IVV's cost advantage may lead to superior long-term returns for investors.</p>

- The iShares Core S&P 500 ETF (IVV) offers a lower expense ratio and higher dividend yield compared to the State Street SPDR S&P 500 ETF Trust (SPY), while both track the S&P 500 Index with nearly identical sector exposure.  
- With IVV’s expense ratio at 0.03% versus SPY’s 0.09%, and its greater assets under management, IVV has outperformed SPY over the past five and ten years in total returns.  
- While both funds provide similar exposure to large-cap U.S. equities, the cost differences significantly impact long-term investment returns, favoring IVV.

IVV vs. SPY: These Top S&P 500 ETFs Are Not the Same