🤝 BFF Take
A True Toss-Up — Pick Based on Your Brokerage, Not Performance
VOO (Vanguard) and IVV (iShares) are both excellent S&P 500 ETFs charging an identical 0.03% expense ratio. Both hold the same 503 US large-cap stocks in the same proportions. Over any meaningful time period, their returns will differ by less than 0.02% — attributable to tiny differences in securities lending income and cash drag management. The practical choice comes down to your brokerage: Vanguard clients often prefer VOO, while Fidelity and Schwab clients sometimes prefer IVV for liquidity and options availability. Either is a top-tier long-term investment. If you already own one, there is no reason to switch.
📋 Quick Takeaways
🔄Same S&P 500 index, same 503 holdings, same 0.03% expense ratio — functionally interchangeable
🏦IVV ($570B AUM) and VOO ($610B AUM) are both among the largest ETFs on earth — liquidity is never a concern
🎯VOO edges ahead in securities lending revenue historically; IVV has slightly better options market liquidity
📊 Data-Based Take: VOO 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
IVV
iShares Core S&P 500 ETF
📋 VOO vs IVV — Key Facts Side by Side
| Metric |
VOO |
IVV |
| Fund Name |
Vanguard S&P 500 ETF |
iShares Core S&P 500 ETF |
| Issuer |
Vanguard |
iShares |
| Tracks Index |
S&P 500 |
S&P 500 |
| Expense Ratio |
0.03% |
0.03% |
| Cost per $10K/yr |
$3.00 |
$3.00 |
| AUM |
$610B |
$570B |
| Holdings |
503 |
503 |
| Inception |
2010 |
2000 |
| 1-Year Return |
+17.38% |
+17.36% |
| 3-Year Return |
+10.22% |
+10.20% |
| 5-Year Return |
+14.62% |
+14.60% |
| Avg Bid-Ask Spread |
0.00% |
0.00% |
Data from ETF BFF database. Returns are annualised. Not investment advice.
📊 VOO vs IVV — Annualised Returns
Annualised returns (trailing, price-based). Past performance does not guarantee future results.
🎯 Should You Buy VOO or IVV?
Choose if...
VOO
- You want focused large-cap US stock exposure via S&P 500
- You already use Vanguard and prefer staying within their fund family
Choose if...
IVV
- You want focused large-cap US stock exposure via S&P 500
- You already use iShares and prefer staying within their fund family
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❓ VOO vs IVV — Frequently Asked Questions
What is the difference between VOO and IVV?
VOO and IVV are nearly identical S&P 500 ETFs. Both charge 0.03%, track the same 503-stock S&P 500 index, and have hundreds of billions in assets. Minor differences: VOO is from Vanguard (2010 launch), IVV is from iShares/BlackRock (2000 launch). IVV has a slightly longer track record and marginally better options liquidity. VOO may have a fractional edge in securities lending income in some years. For practical purposes, they are equivalent.
Should I switch from IVV to VOO (or vice versa)?
Almost certainly not worth switching. The long-term performance gap between VOO and IVV is typically under 0.05% per year — switching in a taxable account could trigger capital gains taxes that far exceed any fee savings. In tax-advantaged accounts, switching is harmless but pointless. Pick one and stay with it for simplicity.
Which is more liquid, VOO or IVV?
Both are among the most liquid ETFs in existence, with billions in daily trading volume. IVV has a more active options market, which matters for institutional traders and sophisticated strategies. For regular investors buying and selling shares, both are identically liquid — you'll get excellent execution either way.
Which S&P 500 ETF is best — SPY, VOO, or IVV?
For long-term investors, VOO and IVV are tied for best due to their 0.03% expense ratio. SPY charges 0.0945% and is best left to institutional traders who need its extreme options market liquidity. Between VOO and IVV, pick based on your brokerage preference. All three track the same S&P 500 index.
Do VOO and IVV pay dividends?
Yes, both VOO and IVV pay quarterly dividends that represent the dividends collected from the 503 S&P 500 companies in the fund. The dividend yield is similar for both — typically around 1.2% to 1.5% annually. Dividend amounts fluctuate with S&P 500 company payouts.
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.