VOO vs. IVV: Which Popular S&P 500 ETF Is the Better Buy for Investors?
Written by Sara Appino for The Motley Fool -> iShares Core S&P 500 ETF and Vanguard S&P 500 ETF share identical expense ratios and trailing-12-month dividend yields. Vanguard S&P 500 ETF manages significantly higher assets under management than iShares Core S&P 500 ETF. Both f
iShares Core S&P 500 ETF and Vanguard S&P 500 ETF share identical expense ratios and trailing-12-month dividend yields.
Vanguard S&P 500 ETF manages significantly higher assets under management than iShares Core S&P 500 ETF.
Both funds maintain heavy concentrations in the technology sector and show identical five-year maximum drawdowns.
The primary distinction between iShares Core S&P 500 ETF (NYSEMKT:IVV) and Vanguard S&P 500 ETF (NYSEMKT:VOO) lies in their issuer and assets under management, as both provide identical expense ratios and performance.
Both iShares Core S&P 500 ETF and Vanguard S&P 500 ETF serve as cornerstone investments for millions of portfolios. They track the same benchmark, the S&P 500 Index, which covers roughly 80% of the available market capitalization of the U.S. equity market. Because they aim for the same target, the choice often comes down to brand preference or existing brokerage relationships rather than fundamental strategy differences.
Beta measures price volatility relative to the S&P 500; beta is calculated from five-year monthly returns. The 1-yr return represents total return over the trailing 12 months. Dividend yield is the trailing-12-month distribution yield.
Both ETFs are among the most cost-efficient funds on the market, each carrying a 0.03% expense ratio. This means an investor pays just $0.30 annually for every $1,000 invested. Additionally, both funds reported an identical trailing-12-month dividend yield of 1.10%, making them virtually indistinguishable regarding income potential and ongoing costs for long-term shareholders.
The Vanguard S&P 500 ETF (VOO) was launched in 2010 and currently manages 505 positions. Its sector concentration includes technology at 36.00%, financial services at 12.00%, and communication services at 11.00%. Its largest positions include Nvidia (NASDAQ:NVDA) at 7.90%, Apple (NASDAQ:AAPL) at 7.05%, and Microsoft (NASDAQ:MSFT) at 5.15%. Over the trailing 12 months, it paid $7.13 per share in dividends. The fund is designed for long-term growth and displays no significant quirks in its structure.
