Generated July 2026 from current fund data.
Overview
IVV and VOO are both large-cap U.S. equity ETFs that track the S&P 500 Index. They're nearly identical in structure and holdings—same underlying benchmark, same 0.03% expense ratio, same quarterly distributions—but differ in issuer (iShares vs. Vanguard), AUM scale, and a modest yield gap. This is a comparison between two of the most liquid and lowest-cost core U.S. equity vehicles available.
How they differ
Both funds track the identical S&P 500 benchmark with matching expense ratios of 0.03%, so the economic difference is negligible. VOO is larger, with $1033B in AUM versus IVV's $833B, though both are massive enough that tracking error and liquidity are nonissues. The most visible distinction is distribution yield: VOO yields 1.15% while IVV yields 1.07%, a difference of 8 basis points that likely reflects timing of index rebalances or dividend capture mechanics rather than any strategic choice. IVV launched in 2000, while VOO came to market in 2010, though this age gap has no practical impact on their current tracking quality.
Who each is best for
IVV: Fits investors who already use iShares products across their portfolio and prefer consolidated account management within that ecosystem, or who entered the fund before VOO existed and see no reason to switch.
VOO: Fits investors building a Vanguard-centric core allocation and value consolidated reporting and potential tax-loss harvesting coordination within Vanguard's platform.
Key risks to know
- Index concentration in mega-cap tech. Both funds hold the same S&P 500 constituents, meaning each carries identical exposure to the current heavy weighting toward Magnificent 7 stocks. A correction in large-cap technology would hit both equally hard.
- Modest yield cushion. With distribution yields under 1.2%, both funds offer little dividend income relative to capital appreciation expectations. Investors relying on distributions for spending will need substantial positions or supplementary holdings.
- Tracking error from cash drag and dividend timing. Even at identical expense ratios, small differences in how each issuer invests cash balances or times dividend reinvestment can create slight performance divergence. Over decades, these tick marks aggregate.
Bottom line
If you value maximum AUM and the broadest institutional ownership, VOO's $1033B scale and Vanguard backing are marginally advantageous. If you're already embedded in an iShares structure or prefer IVV's longer track record, the 8-basis-point yield difference is too small to justify switching costs. For most core portfolios, either fund delivers the same S&P 500 exposure at essentially the same cost. Past performance doesn't predict future results.
AI-generated analysis for educational purposes only. Verify important details independently; past performance does not guarantee future results.
