ETF Comparison

SPY vs IVV vs VOO

Three S&P 500 ETFs. Same 500 stocks. Same index. Very different costs.

Updated for 2026. The definitive three-way comparison.

0.0945%

SPY

0.03%

IVV

0.03%

VOO

TL;DR

For long-term buy-and-hold investors: IVV or VOO. Both charge 0.03% and use modern fund structures. SPY costs 3x more (0.0945%) and uses an outdated structure. SPY only wins for active traders and options traders. Between IVV and VOO, it is a coin flip — VOO has the tax-free mutual fund conversion advantage at Vanguard.

Three-Way Comparison

SPDR vs iShares vs Vanguard — every feature that matters.

Feature	SPY	IVV	VOO
Expense Ratio	0.0945%	0.03%Tied	0.03%Tied
Annual Cost per $10K	$9.45	$3.00Tied	$3.00Tied
Index Tracked	S&P 500	S&P 500	S&P 500
Fund Provider	State Street (SPDR)	BlackRock (iShares)	Vanguard
Inception Date	January 22, 1993	May 15, 2000	September 7, 2010
Structure	Unit Investment Trust (UIT) — older, less flexible	Open-End Fund — modern, efficientTied	Open-End Fund — modern, efficientTied
Dividend Reinvestment	Cannot reinvest — cash sits until distribution (quarterly cash drag)	Can reinvest dividends immediatelyTied	Can reinvest dividends immediatelyTied
Daily Trading Volume	Highest — the most-traded equity security in the worldWins	High — roughly 1/4 of SPY's volume	High — roughly 1/3 to 1/2 of SPY's volume
Options Market	Deepest, most liquid options market of any ETFWins	Growing but much smaller than SPY	Growing but much smaller than SPY
Mutual Fund Equivalent	None	None (iShares does not offer mutual fund share classes)	VFIAX (0.04%) — can convert tax-free at VanguardWins
Securities Lending	Not allowed (UIT restriction)	Allowed — generates additional incomeTied	Allowed — generates additional incomeTied
Best For	Active traders & options traders	Long-term investors at any brokerage	Long-term investors, especially at Vanguard

IVV and VOO tie on most categories. SPY wins only on liquidity and options. For buy-and-hold, IVV or VOO.

The Three Providers

SPY — State Street (SPDR)

The original. Launched January 22, 1993, SPY was the first ETF ever created in the U.S. and remains the most-traded security in the world. State Street Global Advisors manages it as a Unit Investment Trust — a structure that predates modern ETF regulations.

IVV — BlackRock (iShares)

Launched May 15, 2000, by the world's largest asset manager. IVV uses a modern open-end fund structure at 0.03%. BlackRock's iShares is the largest ETF platform globally. IVV is often favored by institutional investors who use iShares across their entire portfolio.

VOO — Vanguard

The newest entrant, launched September 7, 2010. Vanguard — founded by Jack Bogle, the father of index investing — built VOO as the ETF share class of their legendary 500 Index Fund (which dates back to 1976). VOO uniquely offers tax-free conversion to/from VFIAX (mutual fund) at Vanguard.

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Which Should You Buy?

The decision tree is simple.

Are you an active trader or options trader?

→ SPY. Its unmatched liquidity and deep options market make it the only choice for professional-level trading. The higher expense ratio is irrelevant for short holding periods.

Are you a long-term buy-and-hold investor at Vanguard?

→ VOO. Same 0.03% as IVV, plus the unique ability to convert between VOO (ETF) and VFIAX (mutual fund) tax-free. This flexibility is available only at Vanguard.

Long-term investor at Fidelity, Schwab, or any other brokerage?

→ IVV or VOO. Both are 0.03%, both have open-end fund structures, both are commission-free at all major brokerages. Pick whichever you prefer — the difference is genuinely zero for long-term holders.

Glen's Take

I hold VOO (and VTI). SPY is a great product that changed investing forever, but there is zero reason for a buy-and-hold investor to pay 3x the expense ratio for the same 500 stocks. IVV is just as good as VOO — I slightly prefer VOO because of the VFIAX conversion option and because I like what Vanguard represents (Jack Bogle's legacy of low-cost investing for everyone). But this is a personal preference, not a financial one. Any of the three will serve you well. The important thing is that you are investing in a low-cost S&P 500 fund at all — you are already ahead of the vast majority of investors.

Frequently Asked Questions

Which S&P 500 ETF should I buy — SPY, IVV, or VOO?

For long-term buy-and-hold investors, either IVV or VOO. They both charge 0.03%, use a modern open-end fund structure, and track the exact same S&P 500 index. SPY charges 0.0945% — more than 3x the cost — and uses an older UIT structure that cannot reinvest dividends. SPY is only better for active traders and options traders who need maximum liquidity. Between IVV and VOO, the choice often comes down to personal preference or brokerage — VOO has the added benefit of converting to/from VFIAX (mutual fund) tax-free at Vanguard.

Why is SPY more expensive than IVV and VOO?

SPY was launched in 1993 as the very first U.S. ETF, structured as a Unit Investment Trust (UIT) because that was the only legal framework available at the time. This structure has restrictions (cannot reinvest dividends, cannot lend securities) that make it less efficient. IVV (2000) and VOO (2010) were built using the modern open-end fund structure, which is more flexible and cheaper to operate. State Street has kept SPY as a UIT because converting would be legally complex and could trigger tax events for existing shareholders.

Is there any difference in performance between SPY, IVV, and VOO?

All three track the same S&P 500 index, so their gross returns are virtually identical. The only performance difference comes from their expense ratios. SPY's higher fee (0.0945%) creates a slight drag compared to IVV and VOO (both 0.03%). On a $10,000 investment over one year, SPY costs $6.45 more than IVV or VOO. Over 30 years on a larger portfolio, this difference compounds to a few thousand dollars. IVV and VOO perform almost identically to each other.

What is IVV and who manages it?

IVV is the iShares Core S&P 500 ETF, managed by BlackRock — the world's largest asset management company. It launched on May 15, 2000, and tracks the S&P 500 with an expense ratio of 0.03%. BlackRock's iShares is the largest ETF provider in the world. IVV uses an open-end fund structure and is functionally identical to VOO for long-term investors.

Can I switch from SPY to VOO or IVV without tax consequences?

In a tax-advantaged account (IRA, 401(k), Roth IRA), you can sell SPY and buy VOO or IVV with zero tax impact. In a taxable brokerage account, selling SPY will trigger capital gains taxes on any profits. Whether the tax hit is worth the annual fee savings depends on the size of your unrealized gains. For large positions with significant gains, it may take decades of fee savings to recoup the tax cost. For new money, simply buy IVV or VOO going forward.

Is IVV or VOO better?

They are essentially interchangeable for long-term investors. Both charge 0.03%, both use open-end fund structures, both track the S&P 500. VOO has one unique advantage: at Vanguard, you can convert between VOO (ETF) and VFIAX (mutual fund) tax-free. IVV does not have a mutual fund equivalent. Beyond that, the choice between IVV and VOO is a coin flip. Use whichever your brokerage offers commission-free (which is virtually all brokerages for both).

Are there even cheaper S&P 500 options?

For mutual funds, Fidelity's FXAIX charges 0.015% — cheaper than VOO's 0.03%. Fidelity also offers FNILX (Fidelity ZERO Large Cap Index) at 0.00%, though it tracks a proprietary index that is similar but not identical to the S&P 500. For ETFs, 0.03% (IVV and VOO) is the current floor for S&P 500 tracking. At these fee levels, the differences are measured in pennies per year — truly splitting hairs between excellent options.

The Bottom Line

IVV and VOO are the best S&P 500 ETFs for long-term investors. Both charge 0.03%, both use modern fund structures, and both track the exact same index. SPY is the best for active traders and options traders.

All three are in the top 0.1% of cheapest investment funds ever created. If you are choosing between them, you have already made the most important decision right — investing in low-cost index funds. Stop splitting hairs and start compounding.

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