IVV vs SPLG vs SPY vs VOO: Which Is the Better Pick in 2026?

Overview

All four of these are S&P 500 index ETFs—they track the same 500-stock index and deliver nearly identical long-term returns. The only meaningful differences are their expense ratios, fund size, and minor variations in dividend yield. SPLG has the lowest fee at 0.02%; IVV and VOO tie at 0.03%; SPY costs 0.09%. VOO is by far the largest at $1.4 trillion in AUM, followed by IVV at $721 billion and SPY at $652 billion. SPLG trails at $97 billion.

How they differ

The headline difference is cost: SPLG's 0.02% expense ratio undercuts the others by one basis point, which adds up to real dollars over decades. IVV and VOO both charge 0.03%, while SPY's 0.09% ratio is roughly three times higher despite tracking the same index.

On yield, the spread is tight—all distribute around 1.04% to 1.12% quarterly. SPY's 1.04% is the lowest; SPLG's 1.12% is the highest. This reflects minor tracking differences and reinvestment timing rather than strategy divergence.

Size matters for trading liquidity and bid-ask spreads. VOO's $1.4 trillion AUM makes it the deepest pool; SPLG's $97 billion is the shallowest. Deeper funds tend to have tighter spreads, though all four are heavily traded and liquid enough for most investors.

Who each is best for

VOO: Core index investors with large accounts or frequent traders who benefit most from minimal fees and maximum liquidity. The 0.03% expense ratio and Vanguard's ownership structure appeal to buy-and-hold believers.

IVV: Investors already embedded in BlackRock's iShares ecosystem (via existing holdings, advisor relationships, or platform preferences) or those comfortable with BlackRock's corporate governance.

SPLG: Cost-conscious investors who want the absolute lowest expense ratio and don't mind trading in a smaller fund. Works well in portfolios held for decades where the 0.01% savings vs. VOO/IVV compounds meaningfully.

SPY: Long-term holders who prioritize familiarity and longevity (it's the oldest, launched in 1993) or traders who value the tighter bid-ask spreads despite the higher fee. Not the optimal choice for minimizing costs.

Key risks to know

• Fee drag compounds slowly. SPY's 0.09% fee vs. SPLG's 0.02% means you're paying about $700 annually on a $1 million position for the same index exposure. Over 30 years, that gap widens significantly.

• Liquidity asymmetry. While all four are liquid, SPLG's smaller AUM ($97B vs. VOO's $1.4T) may result in slightly wider bid-ask spreads during volatile markets or large block trades, though the difference is typically negligible for retail investors.

• Dividend timing variation. Ex-dividend dates differ across these four (March, June, and other dates in 2026), which can create minor tracking differences and affect tax-loss harvesting timing if you're rotating between them.

• Index concentration. All four hold the same 500 stocks, so they share the S&P 500's exposure to mega-cap tech and financial concentration—a structural risk, not a fund-specific one.

Bottom line

If you prioritize the absolute lowest cost and hold for decades, SPLG's 0.02% ratio edges out VOO and IVV. If you want maximum liquidity and largest scale, VOO stands out. IVV sits in the middle—same fees as VOO but smaller, making it useful mainly if you're already in the BlackRock ecosystem. SPY's 0.09% fee is hard to justify given the competition; it survives on brand recognition and its three-decade track record, not economics. Past performance doesn't predict future returns; these funds will track the S&P 500 almost identically going forward, so your decision should hinge on fees and existing platform relationships, not historical returns.