SPY vs VOO vs IVV is the most common question core index investors ask, and in 2026 the answer rests on three numbers: the SPDR S&P 500 ETF Trust (SPY) charges a gross expense ratio of 0.0945%, while the Vanguard S&P 500 ETF (VOO) and the iShares Core S&P 500 ETF (IVV) each charge 0.03% [1][2][3]. All three track the same S&P 500 Index, and over the ten years to June 30, 2026, VOO and IVV both returned 15.47% a year at net asset value against 15.35% for SPY and 15.51% for the index itself [1][2][3]. For a long-term holder, the lower-fee funds have the edge. SPY keeps its lead only where trading depth matters more than cost.
SPY vs VOO vs IVV: the fee gap in dollars
The fee difference is small in percentage terms, but it compounds. On a $100,000 position, SPY costs about $94.50 a year in expenses, while VOO or IVV cost about $30 [1][2][3]. Over a decade, before any compounding effect, that is roughly $645 of extra cost for the same index exposure. Vanguard notes that the average S&P 500 index fund charged 0.41% as of December 31, 2025, so all three ETFs are cheap relative to the category, but the 0.03% funds are cheaper than SPY by a factor of three [2].
State Street reports SPY's net expense ratio as identical to the gross figure, 0.0945%, so there is no fee waiver that could expire [1]. IVV's 0.03% is entirely a management fee with no acquired fund fees or other expenses [3]. VOO's 0.03% is the figure reported in its most recent prospectus [2].
Tracking difference: how close each fund stays to the S&P 500
Tracking difference is the gap between a fund's return and the index return, and it is the cleanest way to see what fees and structure cost. The table uses NAV total returns for periods ended June 30, 2026.
| Period to June 30, 2026 | SPY (NAV) | VOO (NAV) | IVV (NAV) | S&P 500 Index |
|---|---|---|---|---|
| Year to date | 10.13% | 10.19% | n/a | 10.21% |
| 1 year | 22.15% | 22.28% | 22.29% | 22.32% |
| 3 years (annualized) | 20.46% | 20.58% | 20.58% | 20.61% |
| 5 years (annualized) | 13.26% | 13.36% | 13.37% | 13.41% |
| 10 years (annualized) | 15.35% | 15.47% | 15.47% | 15.51% |
Data: State Street, Vanguard and iShares fact sheets as of June 30, 2026 [1][2][3].
Over ten years SPY lagged the index by 0.16 percentage points a year, while VOO and IVV lagged by 0.04 points [1][2][3]. The gap is almost exactly the fee difference. Over one year the pattern holds: SPY trailed by 0.17 points, VOO by 0.04 and IVV by 0.03 [1][2][3]. IVV's calendar-year record shows the same tightness, with a 17.85% NAV return in 2025 against 17.88% for the benchmark, and 24.98% against 25.02% in 2024 [3]. SPY's market value return was 10.02% year to date, 0.11 points below its NAV return, which reflects a small end-of-quarter discount to net asset value rather than any structural problem [1][4].
Why SPY's structure costs a little extra
SPY is organized as a unit investment trust, a structure it shares with the SPDR S&P MidCap 400 and SPDR Dow Jones Industrial Average products [1]. A unit investment trust must hold the index stocks directly and cannot lend securities or reinvest dividends between quarterly distributions, so cash sits idle for short periods. VOO and IVV are open-end funds that can lend securities and manage cash more flexibly, and VOO reports a turnover rate of only 2.4% for its most recent fiscal year [2]. These details explain why the two cheaper funds also track slightly tighter than the fee gap alone would suggest.
Liquidity and size: where SPY still leads
Size is not a concern for any of the three. VOO held $978,960 million in ETF share assets as of June 30, 2026, and the full Vanguard 500 Index Fund it belongs to held $1,675,038 million [2]. IVV held $888,128.94 million with 1,183,200,000 shares outstanding on the same date [3]. SPY, launched on January 22, 1993, was the first ETF listed in the United States and remains the reference product for index options and short-term hedging [1]. For investors who trade often, use options on the ETF, or need to move large blocks, the deepest market matters more than a few basis points of fees.
For a buy-and-hold investor, the practical liquidity of VOO and IVV is more than enough. Both hold roughly the same 504 to 506 stocks as SPY, and both are large enough that creation and redemption keep prices close to net asset value: VOO's market price return of 22.34% over one year was within 0.06 points of its NAV return [1][2][3].
Holdings and concentration are identical
Because all three funds replicate the same index, the portfolios are the same. As of June 30, 2026, Nvidia (NVDA) was 7.50% of SPY, Apple (AAPL) 6.57%, Microsoft (MSFT) 4.29%, Amazon (AMZN) 3.61% and Alphabet (GOOGL) Class A 3.24%, and the top ten holdings together were 36.31% of the fund [1]. IVV reported its top ten at 36.37% and VOO at 37.9%, with Vanguard combining the two Alphabet share classes [2][3]. Information technology was 38.03% of SPY [1]. The concentration question is therefore about the index, not the wrapper. Investors who want less mega-cap weight need a different index, not a different S&P 500 ETF.
Valuation is also shared. Vanguard reported a price/earnings ratio of 27.5x and a price/book ratio of 5.4x for VOO on June 30, 2026, with a return on equity of 29.0% and an earnings growth rate of 23.0% [2]. SPY's 30-day SEC yield was 0.96% and IVV's 0.98% [1][3].
Which S&P 500 ETF to hold in 2026
- Long-term, buy-and-hold investors may consider VOO or IVV. The 0.03% fee and the tighter tracking added up to about 0.12 percentage points a year of extra return versus SPY over the past decade [1][2][3].
- Active traders and options users may prefer SPY for its trading depth, accepting the higher fee as the price of that liquidity.
- Taxable accounts: all three pay quarterly distributions; VOO's 2.4% turnover is typical of full-replication index funds and helps limit capital gains [2].
- Existing holders: an investor already holding one fund has little reason to switch and realize gains; the differences are small relative to the tax cost of a sale.
For the same S&P 500 exposure, VOO and IVV have delivered about 0.12 percentage points a year more than SPY over ten years, a gap that matches their lower fees.
Investors comparing these and other funds can track holdings and performance on DataPorium's ETF analytics page, which covers holdings transparency and performance breakdown across thousands of funds [5].
Key takeaways
- SPY charges 0.0945%; VOO and IVV charge 0.03%, about one third as much [1][2][3].
- Ten-year annualized NAV returns to June 30, 2026: SPY 15.35%, VOO 15.47%, IVV 15.47%, index 15.51% [1][2][3].
- All three hold the same roughly 504 stocks, with the top ten near 36% to 38% of assets and Nvidia the largest position [1][2][3].
- SPY's unit investment trust structure and higher fee explain its slightly wider tracking gap [1].
- Fee savings favor VOO or IVV for holders; SPY remains the trading instrument of choice.
Frequently asked questions
Is VOO better than SPY for long-term investing?
On cost and tracking, yes: VOO charges 0.03% against 0.0945% for SPY and returned 15.47% a year over the ten years to June 30, 2026, versus 15.35% for SPY [1][2]. SPY's advantage is trading liquidity, which matters less for a long-term holder.
What is the difference between IVV and VOO?
Very little. Both charge 0.03%, both track the S&P 500 with full replication, and both returned 15.47% a year over the ten years to June 30, 2026 [2][3]. IVV is run by BlackRock's iShares and VOO by Vanguard; the choice usually comes down to the brokerage platform.
Why does SPY have a higher expense ratio?
SPY is a unit investment trust created in 1993 with a fixed fee structure, and its sponsor has not matched the fee cuts of newer open-end S&P 500 ETFs [1]. Its size and trading volume let it keep assets despite the higher cost.
Do SPY, VOO and IVV hold the same stocks?
Yes. All three replicate the S&P 500, held 504 to 506 stocks on June 30, 2026, and had Nvidia, Apple and Microsoft as their three largest positions [1][2][3].
Sources & References
- [1] State Street SPDR S&P 500 ETF Trust (SPY) Fact Sheet as of June 30, 2026
- [2] Vanguard S&P 500 ETF (VOO) Fact Sheet as of June 30, 2026
- [3] iShares Core S&P 500 ETF (IVV) Fact Sheet as of June 30, 2026
- [4] State Street SPDR S&P 500 ETF Trust (SPY) fund page and performance
- [5] DataPorium ETF Analytics: Holdings, Flows and Performance
