iShares Core S&P 500 ETF vs. SPDR Portfolio S&P 500 ETF: One Offers Scale While the Other Boasts Lower Fees

The article compares the iShares Core S&P 500 ETF (IVV) and SPDR Portfolio S&P 500 ETF (SPLG), highlighting their nearly identical performance, sector weights, and holdings due to both tracking the S&P 500 index. The primary distinctions are SPLG's slightly lower expense ratio of 0.02% compared to IVV's 0.03%, which offers marginal cost savings for large portfolios, and IVV's significantly larger Assets Under Management (AUM) of $701.37 billion versus SPLG's $86.83 billion, which may appeal to investors seeking greater liquidity and scale.

Analysis

The iShares Core S&P 500 ETF (IVV) and SPDR Portfolio S&P 500 ETF (SPLG) both provide broad exposure to the S&P 500 index, resulting in nearly identical investment performance. Both funds reported an 18.3% one-year return as of October 28, 2025, and grew $1,000 to approximately $2,092 over five years, with identical sector weightings including 36% in technology. Their 5-year monthly beta is 1.00, indicating perfect correlation with the S&P 500, and both offer a 1.16% dividend yield.

The primary distinctions between these two S&P 500 tracking ETFs lie in their expense ratios and assets under management (AUM). SPLG offers a marginally lower expense ratio of 0.02% compared to IVV's 0.03%, translating to a $1 difference per $10,000 invested annually. This seemingly small difference can accumulate significantly over extended periods, particularly for large investment balances.

Conversely, IVV boasts a substantially larger AUM of $701.37 billion, dwarfing SPLG's $86.83 billion. This considerable difference in AUM suggests greater liquidity and scale for IVV, which may be a critical factor for institutional investors or those executing very large trades. IVV also has a longer operational history, spanning 25 years.

Given the neutral sentiment and low market impact score, this comparison highlights subtle structural differences rather than market-moving news. For most long-term investors, the choice between IVV and SPLG will hinge on a preference for marginal cost savings versus enhanced liquidity and established scale.

Key Decisions for Investors

• Investors with a long-term horizon and large capital allocations should consider SPLG for its marginally lower expense ratio, which can lead to significant cost savings over time.
• Institutional investors or those requiring superior liquidity for large-volume trades may prefer IVV due to its substantially larger assets under management and established market presence.
• Recognize that both ETFs offer identical S&P 500 exposure and performance, making the decision primarily a trade-off between minimal cost differences and liquidity considerations.