IVV vs SPY Stock Comparison: AI Score, Valuation, Performance and Upside
IVV and SPY track the same S&P 500 Index and deliver virtually identical equity exposure, but they serve different investor types. IVV is the better choice for long-term buy-and-hold investors due to its lower expense ratio and more efficient dividend handling, while SPY is preferred by traders and institutions who need the deepest options liquidity and tightest spreads for hedging and short-term positions.
The IVV vs SPY choice is not about investment outcomes — both track the S&P 500 — it is about purpose: IVV minimizes cost for patient investors, while SPY maximizes liquidity for active traders and options strategies.
IVV holds the edge across 4 of 5 key metrics in this comparison. IVV has delivered stronger 1-year price return (+16.61% vs +16.58% for SPY).
- prefer the lowest cost vehicle for long-term passive S&P 500 exposure
- value open-end fund structure for dividend reinvestment efficiency over SPY's UIT
- want buy-and-hold S&P 500 exposure where trading volume and options liquidity are secondary concerns
- are comfortable with lower options market depth in exchange for expense ratio savings that compound over decades
- prefer the most liquid options market for covered calls, protective puts, or S&P 500 hedging strategies
- value the tightest bid-ask spreads for large block trades or frequent rebalancing
- want the default institutional S&P 500 vehicle with the longest track record and deepest futures/options ecosystem
- are comfortable paying a higher expense ratio in exchange for superior liquidity and derivatives market access
| Metric | IVV | SPY |
|---|---|---|
| ETF scorei | 80.0 | 79.0 |
| Latest closei | $764.92 | $761.69 |
| 1M returni | -0.73% | -0.71% |
| 6M returni | +18.10% | +18.04% |
| 1Y returni | +16.61% | +16.58% |
The ETF score weights long-term returns and risk-adjusted performance most heavily, but still rewards low expense ratios, larger fund size, and broader diversification — so it can favor low-cost, broad, mega-cap funds over smaller thematic or actively-managed funds even when the latter have delivered stronger returns.
How much would $10,000 be worth today if invested at the start of each period, with all dividends reinvested?
| Period | IVV | SPY |
|---|---|---|
| 1Y ago | $11.8K (+18.0%) started 2025-09-18 | $11.82K (+18.2%) started 2025-09-18 |
| 5Y ago | $20.31K (+103.1%) started 2021-09-20 | $20.11K (+101.1%) started 2021-09-20 |
| 10Y ago | $50.61K (+406.1%) started 2016-09-19 | $49.6K (+396.0%) started 2016-09-19 |
Hypothetical — past performance does not guarantee future results.
| Metric | IVV | SPY |
|---|---|---|
| Expense ratioi | 0.03% | 0.09% |
| Total assets (AUM)i | $883.99B | $811.94B |
| Dividend yieldi | 1.06% | 0.98% |
| Trailing P/Ei | 24.60 | 24.61 |
| Betai | 1.02 | 1.02 |
| 52-week change | 16.61% | 16.58% |
| Metric | IVV | SPY |
|---|---|---|
| 1Y returni | +16.61% | +16.58% |
| 6M returni | +18.10% | +18.04% |
| 1M returni | -0.73% | -0.71% |
| 1Y Sharpe ratio | 0.91 | 0.91 |
| Betai | 1.02 | 1.02 |
| Dividend yieldi | 1.06% | 0.98% |
| 5Y CAGR | +13.51% | +13.43% |
Over the past year, IVV and SPY have moved strongly in the same direction (correlation of 1.00), based on daily returns.
Lower drawdown and smaller single-period drops generally indicate a smoother ride, though they do not guarantee lower future risk.
| Period | Metric | IVV | SPY |
|---|---|---|---|
| 1Y | Growthi | +16.61% | +16.58% |
| CAGRi | +16.63% | +16.59% | |
| Volatilityi | 12.89% | 12.88% | |
| Sharpe ratioi | 0.91 | 0.91 | |
| Sortino ratioi | 1.31 | 1.31 | |
| Max drawdowni | 8.89% | 8.88% | |
| Current drawdowni | 1.83% | 1.84% | |
| Avg drawdowni | 1.45% | 1.45% | |
| Ulcer Indexi | 2.14% | 2.14% | |
| Max daily dropi | 2.72% | 2.70% | |
| Max wkly dropi | 3.74% | 3.82% | |
| 5Y | Growthi | +88.25% | +87.63% |
| CAGRi | +13.51% | +13.43% | |
| Volatilityi | 17.02% | 17.19% | |
| Sharpe ratioi | 0.57 | 0.56 | |
| Sortino ratioi | 0.81 | 0.80 | |
| Max drawdowni | 24.53% | 24.50% | |
| Current drawdowni | 1.83% | 1.84% | |
| Avg drawdowni | 5.57% | 5.57% | |
| Ulcer Indexi | 8.45% | 8.45% | |
| Max daily dropi | 6.01% | 5.85% | |
| Max wkly dropi | 11.53% | 11.50% | |
| 10Y | Growthi | +320.34% | +317.93% |
| CAGRi | +15.45% | +15.38% | |
| Volatilityi | 18.06% | 17.95% | |
| Sharpe ratioi | 0.64 | 0.64 | |
| Sortino ratioi | 0.89 | 0.89 | |
| Max drawdowni | 33.90% | 33.72% | |
| Current drawdowni | 1.83% | 1.84% | |
| Avg drawdowni | 4.31% | 4.31% | |
| Ulcer Indexi | 7.17% | 7.16% | |
| Max daily dropi | 11.57% | 10.94% | |
| Max wkly dropi | 18.04% | 17.97% |
| Category | IVV | SPY |
|---|---|---|
| Fund name | iShares Core S&P 500 ETF | State Street SPDR S&P 500 ETF Trust |
| Type | ETF | ETF |
| Expense ratioi | 0.03% | 0.09% |
| Total assets (AUM)i | $883.99B | $811.94B |
| Dividend yieldi | 1.06% | 0.98% |
- 0.03% expense ratio — lower than SPY's 0.0945% — saves meaningful costs over long holding periods
- Open-end fund structure allows dividend reinvestment and securities lending, improving total return vs SPY
- AUM exceeding $550B provides deep secondary market liquidity for institutional and retail investors
- Most liquid options market of any ETF, essential for institutional hedging, covered calls, and short-term tactical strategies
- Tightest bid-ask spreads of any S&P 500 ETF in the secondary market, critical for large block trades
- Longest trading history (since 1993) and brand recognition make it the default S&P 500 vehicle for institutions worldwide
- Options market for IVV is far less liquid than SPY's, making it inferior for options strategies or hedging
- Bid-ask spreads are slightly wider than SPY in some market conditions due to lower daily trading volume
- As with all S&P 500 funds, full exposure to U.S. large-cap concentration risk with top 10 holdings exceeding 30% of the index
- 0.0945% expense ratio is 3x higher than IVV and VOO, costing long-term buy-and-hold investors relative to cheaper alternatives
- UIT structure prevents dividend reinvestment and securities lending, creating small but measurable performance drag vs IVV
- Tax efficiency is identical to IVV for most U.S. taxable investors in practice, so cost difference is the primary long-term differentiator
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