IVV ETF Explained: How It Compares to VOO and SPY

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IVV charges the same 0.03% expense ratio as VOO and less than a third of SPY’s 0.0945% – yet it’s the S&P 500 ETF most beginners skip simply because it’s less well-known. If you’re comparing S&P 500 ETFs, you’ve probably already looked at VOO and SPY. IVV is the third major option – and for many investors, it’s the one that gets overlooked simply because it’s less familiar.

This guide explains what IVV is, how it compares to VOO and SPY on cost and structure, and who it tends to fit best.

What Is IVV?

IVV is the iShares Core S&P 500 ETF, issued by BlackRock. It tracks the S&P 500 index – the same index as VOO and SPY – and has been available to investors since 2000, making it one of the oldest broad-market ETFs in existence.

For official fund details, see the iShares IVV product page.

Fund details can change over time. Verify current figures on the fund sponsor’s website before investing.

For a deeper look at what the S&P 500 index itself represents, see our guide on what the S&P 500 is.

IVV vs. VOO vs. SPY: The Three-Way Comparison

IVV, VOO, and SPY all track the same S&P 500 index. Their long-term returns are nearly identical before costs. The differences come down to issuer, structure, fee, and liquidity.

Expense ratios and fund details can change over time. Verify current figures on each fund sponsor’s website before investing.

IVV vs. VOO: The Practical Difference

For most individual investors, IVV and VOO are functionally interchangeable. Both carry a 0.03% expense ratio, both use a standard open-end ETF structure that allows dividend reinvestment and securities lending, and both track the identical S&P 500 index. To understand how this fee affects your returns over time, see ETF Expense Ratios Explained.

The most practical difference is often personal preference or brokerage availability. IVV and VOO are both commonly available at major brokerage platforms, and many investors can buy either one without a trading commission.

If both are available with no transaction fee, the choice between IVV and VOO is unlikely to meaningfully affect a long-term investor’s outcome.

IVV vs. SPY: A Clearer Difference

The comparison between IVV and SPY is more meaningful. SPY has a higher expense ratio than IVV and uses a Unit Investment Trust structure, while IVV uses a more standard ETF structure.

Those differences generally make IVV the more practical choice for long-term investors: it offers lower costs than SPY, uses a more modern ETF structure, and does not require investors to pay extra for trading features they may never use.

Active traders and options users may see the tradeoff differently. SPY’s trading volume, liquidity, and options market depth can matter more than the annual expense-ratio difference.

For a deeper explanation of SPY’s structure and why traders still use it, see our guide to VOO vs. SPY. For a full individual breakdown of SPY’s UIT structure, expense ratio, and use cases, see SPY ETF Explained. For a complete individual breakdown of VOO’s holdings, structure, and portfolio role, see VOO ETF Explained.

Who Should Consider IVV?

• Long-term, buy-and-hold investors who want low-cost S&P 500 exposure.
• Investors who prefer the iShares / BlackRock ETF lineup.
• Investors who already hold IVV and do not have a strong reason to switch.
• Anyone who wants a well-established S&P 500 ETF with a long track record dating back to 2000.

Does It Matter Which One You Pick?

Between IVV and VOO – not meaningfully, for most investors. Both share the same expense ratio, the same fund structure, and track the same index. Your brokerage platform and any commission differences are the most practical deciding factors.

Between IVV and SPY – yes, modestly. IVV costs less and uses a structurally superior fund format for long-term holders. SPY’s edge is liquidity and options depth, which matters to a different type of investor.

If you already hold any of the three in a taxable account, the case for switching is generally weak – triggering capital gains to move from one S&P 500 fund to another identical one rarely makes financial sense.

For a direct comparison of VOO and VTI – which unlike IVV vs. VOO does involve a meaningful index difference – see our guide on VOO vs. VTI.

The Bottom Line

IVV is a low-cost, well-structured S&P 500 ETF that’s effectively equivalent to VOO for most long-term investors. The most common reason to choose IVV over VOO is simply which brokerage you use – IVV is the natural commission-free default on Fidelity and Schwab, while VOO is associated with Vanguard.

Neither IVV nor VOO is meaningfully better than the other for a buy-and-hold investor. The more important question is whether an S&P 500 fund is the right core holding for your portfolio – and if it is, either one gets the job done.

Ready to Keep Building?

For a complete comparison of the two most commonly discussed S&P 500 ETFs, see our guide to VOO vs. SPY.

If you are building a full portfolio around a core S&P 500 holding, see our guide to the 3 ETF portfolio strategy.

If you are still deciding whether an S&P 500 fund or a total U.S. market fund should be your core holding, read our VOO vs. VTI comparison.