Core Insights - The iShares Core S&P 500 ETF (IVV) and SPDR S&P 500 ETF Trust (SPY) both aim to replicate the S&P 500 index, but they cater to different types of investors based on liquidity and cost considerations [1][2] Cost Comparison - IVV has a lower expense ratio of 0.03% compared to SPY's 0.09%, making it more suitable for buy-and-hold investors [3][4] - As of December 18, 2025, IVV reported a 1-year return of 15.4% while SPY had a return of 14.18% [3] - IVV also offers a slightly higher dividend yield of 1.2% compared to SPY's 1.06% [3] Performance Metrics - Over a 5-year period, the maximum drawdown for IVV was -24.53% while SPY's was -24.50% [5] - An investment of $1,000 would grow to $1,829 in IVV and $1,832 in SPY over the same period [5] Portfolio Composition - Both IVV and SPY hold 503 large-cap U.S. stocks, with significant allocations in technology (35%), financial services (13%), and communication services (11%) [6][7] - Top holdings for both ETFs include Nvidia, Apple, and Microsoft [6][7] Investor Considerations - SPY is designed for active trading due to its high liquidity and trading volume, making it easier to enter and exit positions [9][10] - IVV is structured for long-term holding, favoring investors who prefer low costs and minimal management of trades [8][10]
SPY vs. IVV: Built to Trade or Built to Hold
The Motley Fool·2025-12-23 02:13