Which S&P 500 Fund is the Better Choice: SPY or IVV?
Key takeaways
- Both funds are designed to provide investors with broad exposure to large-capitalization U.S. equities by tracking the S&P 500 Index.
- Beta measures price volatility relative to the S&P 500; beta is calculated from five-year monthly returns.
- Expense ratios represent the primary cost of ownership for these funds.
Both funds are designed to provide investors with broad exposure to large-capitalization U.S. equities by tracking the S&P 500 Index. While the SPDR trust is the industry pioneer with unmatched trading volume, the i Shares fund could be more appealing for long-term buy-and-hold portfolios due to its lower carrying costs.
Beta measures price volatility relative to the S&P 500; beta is calculated from five-year monthly returns. The 1-yr return represents total return over the trailing 12 months. Dividend yield is the trailing-12-month distribution yield.
Expense ratios represent the primary cost of ownership for these funds. The iShares fund is more affordable at 0.03%, while the SPDR trust costs 0.09% annually. Additionally, IVV provides a slightly higher trailing-12-month dividend yield for income-focused investors.