Which S&P 500 ETF Is Better in 2026? State Street's SPY or iShares' IVV?
IVV's 0.03% expense ratio and $886 billion in assets make it a compelling alternative for buy-and-hold investors seeking broad market exposure.
Overview
Many investors are looking for an S&P 500 index ETF to track the world’s most important index. But which to choose? The iShares Core S&P 500 ETF (NYSEMKT:IVV) offers a nearly identical portfolio to State Street SPDR S&P 500 ETF (NYSEMKT:SPY) but features a lower expense ratio and higher assets under management (AUM).
While the SPDR trust is the oldest and most recognized exchange-traded fund tracking the S&P 500, the iShares fund has become a massive competitor by offering a lower-cost alternative to the same index. Both funds aim to provide broad, diversified exposure to the largest, most established companies in the U.S. stock market for long-term growth.
Details
Expense ratios are the primary differentiator in this match-up. The iShares fund is significantly more affordable for long-term holders with a 0.03% expense ratio compared to the 0.0945% charged by the SPDR trust. Because of this lower fee and slight differences in internal cash management, it also provides a marginally higher dividend payout to its shareholders.
Source
Originally published at www.fool.com.