The Best Index Funds to Buy: Low Cost IVV or Higher Yield DIA?

Core Insights - The iShares Core S&P 500 ETF (IVV) offers broader coverage and lower fees compared to the SPDR Dow Jones Industrial Average ETF Trust (DIA), which focuses on 30 blue-chip companies and has a slightly higher yield [1][2]. Cost & Size Comparison - IVV has an expense ratio of 0.03%, significantly lower than DIA's 0.16% - As of January 26, 2026, IVV's 1-year total return is 15.4%, while DIA's is 13% - IVV has a dividend yield of 1.05%, compared to DIA's 1.4% - The assets under management (AUM) for IVV is $763 billion, while DIA has $44.1 billion [3][4]. Performance & Risk Comparison - Over the past five years, IVV experienced a maximum drawdown of -27.67%, while DIA had a drawdown of -43.43% - An investment of $1,000 in IVV would have grown to $1,814 over five years, compared to $1,582 for DIA [5]. Portfolio Composition - DIA holds 30 stocks, with significant allocations in financial services (27.5%), technology (18.9%), and industrials (15.8%); top positions include Goldman Sachs (11.61%), Caterpillar (7.92%), and Microsoft (5.86%) [6]. - IVV provides exposure to the full S&P 500 index, with a heavy tilt towards technology (33.65%), followed by financial services (12.8%), communication (10.67%), and consumer cyclicals (10.5%); top holdings include Nvidia, Apple, and Microsoft [7]. Investment Implications - Both IVV and DIA are considered among the best index funds, providing investors with two distinct options for investing in the broader U.S. stock market [8].