🤝 BFF Take
IVV for Buy-and-Hold, SPY for Traders
For long-term, buy-and-hold investors, IVV is the better pick — it costs 0.03% vs SPY's 0.0945%, which adds up to hundreds of dollars over decades on a typical portfolio. SPY's only real advantage is liquidity: it trades 5–10x more daily volume than IVV, which matters for institutional traders and options strategies, not for someone contributing monthly to a brokerage account.
📋 Quick Takeaways
💰IVV costs 0.03% vs SPY's 0.0945% — a 3x fee gap that costs ~$600 more with SPY on $50K over 30 years
📊SPY trades $30–40B daily vs IVV's ~$5B — that liquidity premium only matters for institutional traders and options desks
🎯Both track the same 500 stocks in the same weights — owning both adds no diversification
📊 Data-Based Take: IVV has the lower fee
Whether the lower-cost fund suits your situation depends on your existing holdings, account type, tax situation, and how you use each fund. This is a cost comparison, not a personalized recommendation.
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Reviewed by a CFA® Charterholder · Data updated Jun 2026 · Educational only, not financial advice
SPY
SPDR S&P 500 ETF Trust
IVV
iShares Core S&P 500 ETF
📋 SPY vs IVV — Key Facts Side by Side
| Metric |
SPY |
IVV |
| Fund Name |
SPDR S&P 500 ETF Trust |
iShares Core S&P 500 ETF |
| Issuer |
State Street |
BlackRock |
| Tracks Index |
S&P 500 |
S&P 500 |
| Expense Ratio |
0.09% |
0.03% ✓ |
| Cost per $10K/yr |
$9.45 |
$3.00 |
| AUM |
$702B+ |
$620B+ |
| Holdings |
503 |
503 |
| Inception |
1993 |
2000 |
| 1-Year Return |
+17.30% |
+17.38% |
| 3-Year Return |
+10.20% |
+10.22% |
| 5-Year Return |
+14.60% |
+14.62% |
| Avg Bid-Ask Spread |
0.00% |
0.00% |
Data from ETF BFF database. Returns are annualised. Not investment advice.
📊 SPY vs IVV — Annualised Returns
Annualised returns (trailing, price-based). Past performance does not guarantee future results.
🎯 Should You Buy SPY or IVV?
Choose if...
SPY
- You want focused large-cap US stock exposure via S&P 500
- You already use State Street and prefer staying within their fund family
Choose if...
IVV
- You want the lowest fees — saves ~$6/yr per $10K vs SPY
- You want focused large-cap US stock exposure via S&P 500
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❓ SPY vs IVV — Frequently Asked Questions
Is SPY or IVV better for long-term investing?
IVV. Lower expense ratio (0.03% vs 0.0945%) means less drag on returns over decades. The S&P 500 exposure is identical — same 500 stocks, same weights.
Why is SPY more popular than IVV if IVV is cheaper?
SPY launched in 1993 and built up massive institutional adoption before IVV existed. Its liquidity and options market depth keep institutional traders loyal even at a higher fee. For retail investors, that liquidity premium is irrelevant.
Can I hold both SPY and IVV?
You can, but there is no point. They hold the same 500 stocks in the same weights. Owning both just doubles your cost without adding diversification.
New to ETF investing? See answers to the most common ETF questions →
ℹ️ Data shown is for educational purposes and may not reflect the most current figures. Returns are trailing price-based and exclude dividend reinvestment. Past performance does not guarantee future results. ETF BFF is not a licensed financial advisor — this is not personalized financial advice.