The Best S&P 500 ETF to Buy: Vanguard S&P 500 ETF vs. iShares Core S&P 500 ETF

Core Insights - The primary distinction between the iShares Core S&P 500 ETF (IVV) and the Vanguard S&P 500 ETF (VOO) lies in their scale and investor preferences, as both have similar costs and performance metrics [1][4]. Cost and Size Comparison - Both IVV and VOO have an expense ratio of 0.03% and deliver a similar dividend yield of approximately 1% [3][4]. - As of the latest data, IVV has assets under management (AUM) of $680.6 billion, while VOO has a significantly larger AUM of $1.5 trillion [3]. Performance and Risk Metrics - The one-year total return for IVV is 16.5%, compared to VOO's 18% [3]. - Over a five-year period, the maximum drawdown for IVV is -24.53%, while VOO's is slightly lower at -24.52% [5]. - The growth of $1,000 invested over five years is $1,845 for IVV and $1,842 for VOO [5]. Portfolio Composition - VOO holds 505 stocks with a sector mix led by technology (34.6%), followed by financials and consumer discretionary [6]. - IVV has 503 holdings with a similar sector allocation, with technology at 34.02% [7]. Investment Implications - Investing in S&P 500 ETFs like IVV and VOO provides a cost-effective way to gain exposure to the performance of the 500 largest publicly traded companies in the U.S. [9]. - The recent surge in the S&P 500 index to record highs has also led to record highs for both IVV and VOO [10]. - Investors can benefit from dividends paid by S&P 500 companies, which are collected and passed on by the ETFs [11]. Investor Considerations - Retail investors can choose between VOO and IVV, with VOO's larger size and higher trading volumes potentially offering better liquidity for high-volume traders [12].