![]() Closely trailing is the healthcare industry at around 13.5%. The next highest is the financial services industry, with just under 14% of the companies in the S&P 500 falling under this category. Looking at SPY’s industry exposure, it’s clear that technology is by far the most dominant industry within the fund, with nearly 25% of companies. It’s both important and interesting to consider industry exposure for the ETFs as it provides insights into the dominant industries in the US as well as the diversification of the ETFs, which is tied to risk. Both track the S&P 500, so this is no surprise. IVV’s fund composition is identical to that of SPY – 84% large-cap, 16% mid-cap and no small-cap stocks. This is no surprise considering the fact that the S&P 500 tracks 500 of the largest companies listed on US markets. The rest (16%) are mid-cap stocks, leaving no room for small-cap stocks. SPY’s fund is composed of 84% large-cap stocks – an overwhelming majority. In this section, we will compare the composition of each fund. ![]() Both figures are relatively low, though, indicating that there is minimal trading going on behind the scenes.Īlthough sometimes it may be considered good to have a high turnover indicating a fund is more actively managed than is the case for both SPY and IVV, it has consistently been found that actively managed funds are unlikely to outperform the S&P 500. SPY has a turnover of 2.00%, which is less than half the value of IVV’s turnover at 5.00%. A small percentage of a huge number is still a huge number! Turnover However, in the long run, investors may end up saving significant amounts of money as they continuously fund their investments for many years. For example, a portfolio worth only $1000 will cost 90 cents or 30 cents for an expense ratio of 0.09% or 0.03%, respectively. IVV’s expense ratio (in other words, its fees) is among the lowest on the market.īoth expense ratios are almost negligible when dealing with small portfolios. SPY has an expense ratio of 0.09%, which is significantly higher than the expense ratio of 0.03% that IVV offers. The fees will be covered in the next section. It is also important to consider an individual’s preferred investing style as well as the fees associated with each ETF. IVV reinvests dividends prior to quarterly payouts, meaning that returns may actually be higher than those for SPY. However, small differences may result in large losses or gains depending on (1) the amount of money invested and (2) the duration of the investment. SPY has a dividend yield of 1.30%, only slightly higher than IVV’s dividend yield of 1.28%. The figures are almost identical which is normal considering that both ETFs mirror the S&P 500.Īs returns are very similar, informed decisions should take into account dividend yields and expense ratios, among other factors. SPY has a Year-to-date return of 19.94%, which is slightly lower than IVV’s Year-to-date return of 19.99%. Additionally, both funds offer excellent liquidity, although SPY’s liquidity is slightly better. IVV has also grown its assets base more rapidly than SPY in recent years.Īs the two largest ETFs in terms of assets under management, there is no doubt that both SPY and IVV are very trustworthy. While SPY may have more total assets than IVV, the latter boasts an impressive second place in the ranking, with 294.95B total assets under management. SPY has 374.03B total assets under management, making it the largest ETF in the world by market cap. IVV is issued by iShares a collection of ETFs under management by BlackRock, the world’s largest asset manager, with over $9 trillion in assets under management. ![]() SPY is issued by SPDR State Street Global Advisors, the world’s fourth-largest asset manager with around $4 trillion in assets under management as of the time of writing. The blends consist of large-cap growth and value stocks. This means that most of the stocks held within the ETFs are of large-cap companies. What’s The Difference? SPY IVV Category Large Blend Large Blend Issuer SPDR State Street Global Advisors iShares AUM 374.03B 294.95B YTD 19.94% 19.99% Yield 1.30% 1.28% Fees 0.09% 0.03% Turnover 2.00% 5.00% Category ![]() Lastly, I will compare the annual returns and portfolio growth of each ETF. ![]() I will commence by comparing metrics highlighting the differences in the make-up of SPY and IVV as well as their fund compositions and industry exposure, before analyzing risk metrics such as volatility and drawdowns. ![]()
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