Quick Verdict
- Choose SPY if: you trade actively, use options, or need the deepest intraday liquidity in S&P 500 ETFs.
- Choose IVV if: you are a long-term investor who wants the lowest fee and holds, or prefers, iShares products.
- Choose VOO if: you are a long-term investor who wants the lowest fee and holds, or prefers, Vanguard products.
- Key difference: all three track the S&P 500 with near-identical holdings, but SPY charges 0.0945% a year versus 0.03% for IVV and VOO.
- Winner for most investors: IVV, because it matches VOO’s 0.03% fee while showing the smallest gap to the index and the highest trailing yield in this data, though its edge over VOO is very small.
Table of Contents
SPY vs IVV vs VOO: Key Differences at a Glance
All three funds hold the S&P 500, so the differences come down to cost, structure, and trading characteristics. Data is as of October 2026.
| Feature | SPY | IVV | VOO |
|---|---|---|---|
| Full name | State Street SPDR S&P 500 ETF Trust | iShares Core S&P 500 ETF | Vanguard S&P 500 ETF |
| Issuer | State Street Investment Management (SPDR) | BlackRock / iShares | Vanguard |
| Benchmark | S&P 500 Index | S&P 500 Index | S&P 500 Index |
| Inception | Jan 22, 1993 | May 15, 2000 | Sep 7, 2010 |
| Structure | Unit Investment Trust (UIT) | Open-end fund | Open-end fund |
| Expense ratio | 0.0945% | 0.03% | 0.03% |
| Dividend frequency | Quarterly | Quarterly | Quarterly |
| Dividend yield (12-mo trailing) | ~0.99% | ~1.10% | ~1.06% |
| AUM | ~$817 billion | ~$884 billion | ~$1.03 trillion |
| Average volume | ~42.9M shares/day | ~6.4M shares/day | ~7.1M shares/day |
IVV and VOO are nearly interchangeable on cost and structure. SPY is the oldest fund and trades far more heavily, but it costs more than three times as much.
Expense Ratio Comparison
SPY charges 0.0945% a year, while IVV and VOO each charge 0.03%. The gap is 0.0645 percentage points. That looks small, but it is charged every year regardless of performance.
On a $10,000 investment, IVV and VOO cost about $3 annually and SPY about $9.45. On $100,000, the figures are $30 versus $94.50, so SPY costs roughly $64.50 more per year.
The difference compounds over time. Assume a hypothetical 7% annual gross return on $100,000 held for 30 years, with no contributions or withdrawals. After fees, IVV or VOO would grow to roughly $754,800 and SPY to roughly $741,300, a gap near $13,500. This is an illustration, not a forecast.
IVV and VOO are cheaper because their issuers compete directly on price for long-term, buy-and-hold money. Their fees are identical, so cost does not separate those two.
SPY still has buyers because its fee comes with the deepest trading liquidity and options market in this group. Its Unit Investment Trust structure also differs from the open-end structure of IVV and VOO, which affects how it handles dividends and cash. Active traders and institutions may accept the higher cost for those features.
If you plan to hold for many years, the lower fee of IVV or VOO may be the stronger consideration. If you trade often or use options, SPY’s market depth could justify paying more.
Performance Comparison
Because all three funds track the S&P 500, their returns have been nearly identical. As of October 2026, IVV has posted the smallest or tied-smallest gap to the index in every period, with VOO close behind and SPY further back.
| Period | SPY | IVV | VOO | S&P 500 Index |
|---|---|---|---|---|
| 1-Year | +15.60% | +15.71% | +15.70% | +15.74% |
| 3-Year (annualized) | +22.73% | +22.85% | +22.85% | +22.89% |
| 5-Year (annualized) | +13.65% | +13.76% | +13.75% | +13.79% |
| 10-Year (annualized) | +15.18% | +15.30% | +15.29% | +15.33% |
IVV has trailed the index by 0.03 to 0.04 points per period, VOO by 0.04, and SPY by 0.14 to 0.16. SPY’s shortfall versus IVV and VOO is 0.10 to 0.12 points, somewhat larger than the 0.0645-point fee gap. The remainder may reflect structural factors, such as a UIT’s inability to reinvest dividends between payment dates, though the data here does not isolate the cause.
IVV and VOO differ by about 0.01 point, which is small enough to be timing noise rather than a lasting edge. These figures are historical. Past performance is not indicative of future results, and all three funds will rise and fall with the S&P 500.
Holdings and Portfolio Overlap
All three funds hold essentially all of the roughly 500 S&P 500 constituents at nearly identical weights, so the overlap is about 100%. Owning more than one adds no diversification.
| Holding | SPY | IVV | VOO |
|---|---|---|---|
| NVIDIA (NVDA) | 8.36% | 8.37% | 8.39% |
| Apple (AAPL) | 7.35% | 7.36% | 7.38% |
| Microsoft (MSFT) | 5.76% | 5.77% | 5.78% |
| Amazon.com (AMZN) | 3.70% | 3.70% | 3.71% |
| Alphabet Class A (GOOGL) | 3.05% | 3.06% | 3.07% |
| Broadcom (AVGO) | 2.53% | 2.53% | 2.54% |
| Alphabet Class C (GOOG) | 2.45% | 2.45% | 2.45% |
| Meta Platforms (META) | 2.42% | 2.42% | 2.43% |
| Micron Technology (MU) | 1.82% | 1.82% | 1.83% |
| Tesla (TSLA) | 1.51% | 1.51% | 1.52% |
Sector weights match just as closely. Technology is about 40.5% in each fund, followed by Financial Services at roughly 11%. All three are heavily concentrated in a handful of mega-cap technology names.
The holdings are not a reason to prefer one fund. The decision comes down to cost, structure, and how you plan to trade.
Liquidity and Options: Where SPY Stands Apart
SPY trades about 42.9 million shares a day, roughly six times VOO’s 7.1 million and nearly seven times IVV’s 6.4 million. It also has the deepest options market of any ETF, which is why institutions and active traders often use it for hedging and short-term positioning.
That depth can mean tighter execution on very large orders and more strikes and expirations for options strategies. For a trader, those benefits may outweigh a fee difference that amounts to dollars per year.
Interestingly, SPY is no longer the largest fund by assets. VOO holds about $1.03 trillion and IVV about $884 billion, versus roughly $817 billion for SPY. Size has not translated into higher trading volume for the two cheaper funds, though their volume is still substantial.
If you buy shares monthly and hold for years, SPY’s extra liquidity may bring little practical benefit. If you trade in size or write options, it could be the deciding factor.
Which Is Better for You? Our Verdict
SPY may be the better choice if you:
- Trade actively or in large size
- Use options strategies on the S&P 500
- Need the most liquid S&P 500 ETF for hedging
- Work in an institutional setting where SPY is the standard
IVV may be the better choice if you:
- Invest for the long term and rarely trade
- Want the lowest fee with the smallest gap to the index
- Prefer the highest trailing yield of the three (~1.10%)
- Hold other iShares funds or use a platform that favors them
VOO may be the better choice if you:
- Invest for the long term and rarely trade
- Want the lowest fee on the largest S&P 500 ETF by assets
- Prefer Vanguard as an issuer
- Hold other Vanguard funds in the same account
For most buy-and-hold investors, IVV or VOO could be the more efficient choice, since both cost about 68% less than SPY and have trailed the index by less. Between those two, the differences are tiny, so the issuer you prefer or the platform you use may reasonably decide it. SPY’s advantages are real but concentrated among traders and institutions.
→ Read our SPY review | → Read our IVV review | → Read our VOO review
Frequently Asked Questions
Which is better for long-term investors: SPY, IVV, or VOO?
IVV or VOO may suit long-term investors better because both charge 0.03% and have tracked the index more closely than SPY. All three hold the same stocks, so the gap comes from fees and structure. The difference is modest but compounds over time.
Can I hold more than one of SPY, IVV, and VOO?
You can, but it adds no diversification because all three hold essentially the same 500 stocks. Some investors hold SPY for trading and IVV or VOO for long-term holdings. For most people, one fund is enough.
Why is SPY more expensive than IVV and VOO?
SPY charges 0.0945% versus 0.03% for IVV and VOO. Its fee supports a fund built around very deep liquidity and the largest options market among ETFs. IVV and VOO are priced to compete on cost for long-term holders.
Which pays the highest dividend: SPY, IVV, or VOO?
IVV has the highest trailing 12-month yield at about 1.10%, followed by VOO at about 1.06% and SPY at about 0.99%. On $100,000, that is roughly $1,100, $1,060, and $990 a year before taxes. All three pay quarterly, and yields change over time.
Does it make sense to switch from SPY to IVV or VOO?
It may save about $64.50 per year on $100,000 in fees. In a taxable account, though, selling SPY could trigger capital gains taxes that outweigh years of fee savings. Consider your cost basis and consult a qualified advisor before switching.
Data as of October 2026. Sources: issuer websites and finance.yahoo.com.
Disclaimer: The information in this article is for educational and informational purposes only. It does not constitute financial, investment, or tax advice. Past performance is not indicative of future results. Investing in ETFs involves risk, including possible loss of principal. Always consult a qualified financial advisor before making investment decisions.