The iShares Core S&P 500 ETF (IVV) is one of the world’s largest and most liquid ETFs. Managed by BlackRock, it tracks the S&P 500 Index — the 500 largest US companies by market capitalisation — at a 0.03% expense ratio. Along with VOO (Vanguard) and SPY (State Street), IVV is one of the three dominant S&P 500 ETFs.
What Is IVV?
IVV was launched in May 2000 and has grown to over $600 billion in assets (2026). It tracks the same S&P 500 Index as VOO and SPY, holding the exact same 500 stocks in the same market-cap weights.
Key IVV facts:
| Metric | Detail |
|---|---|
| Ticker | IVV |
| Manager | BlackRock (iShares) |
| Expense ratio | 0.03% |
| Index tracked | S&P 500 |
| Holdings | ~503 |
| Dividend yield | ~1.2%–1.6% |
| Dividend frequency | Quarterly |
| AUM | $600B+ |
| Exchange | NYSE Arca |
| Inception date | May 15, 2000 |
IVV vs. VOO vs. SPY: The Full Comparison
| Feature | IVV | VOO | SPY |
|---|---|---|---|
| Manager | BlackRock | Vanguard | State Street (SPDR) |
| Expense ratio | 0.03% | 0.03% | 0.0945% |
| AUM | $600B+ | $600B+ | $580B+ |
| Average daily volume | Very high | High | Extremely high |
| Options market | Deep | Growing | Deepest |
| Structure | 1940 Act open-end fund | 1940 Act open-end fund | Unit Investment Trust |
| Dividend reinvestment | Daily | Daily | Held until quarterly dist. |
| Best for | Long-term investors at iShares brokers | Long-term investors at Vanguard | Active traders, options |
| Fund inception | 2000 | 2010 | 1993 |
Key structural difference: SPY is a Unit Investment Trust (UIT), an older structure that cannot reinvest dividends between distributions — they must hold cash. IVV and VOO are newer open-end funds that reinvest dividends immediately, giving them a slight performance edge vs. SPY over long periods (the “cash drag” advantage).
Over the past decade, IVV and VOO have tracked each other almost perfectly. SPY slightly underperforms both due to its higher expense ratio and cash drag.
S&P 500 Performance: What IVV Tracks
The S&P 500 has delivered approximately:
| Period | Approximate return |
|---|---|
| 5-year (2021–2025) | ~14–16%/yr |
| 10-year (2016–2025) | ~12–14%/yr |
| 20-year (2006–2025) | ~10–12%/yr |
| 30-year (1996–2025) | ~10–11%/yr |
All three funds (IVV, VOO, SPY) closely track these returns, with minor differences attributable to expense ratios and dividend handling.
IVV’s Top Holdings
IVV’s top 10 holdings are identical to VOO and SPY’s top 10 — the largest US companies by market cap:
- Apple
- Microsoft
- Nvidia
- Amazon
- Alphabet (Google)
- Meta Platforms (Facebook)
- Berkshire Hathaway
- Broadcom
- Tesla
- JPMorgan Chase
The top 10 holdings represent approximately 35–38% of the entire fund.
IVV vs. VOO: Which Should You Choose?
For long-term investors, IVV and VOO are functionally identical. The choice often comes down to:
Choose IVV if:
- You invest at Merrill Edge, TD Ameritrade, or any broker where iShares ETFs have a preferred relationship
- You want BlackRock’s institutional research and product breadth
- You’re already using other iShares ETFs (IXUS, AGG, IEMG) for portfolio completeness
Choose VOO if:
- You have a Vanguard account
- You’re already using other Vanguard ETFs (VTI, VXUS, BND) for a cohesive portfolio
- You want the Vanguard ownership structure (fund shareholders own the company)
The verdict: Flip a coin. Over 20 years, the expense ratio difference between IVV and VOO is approximately $0 per year. Choose whichever fits your brokerage and existing portfolio best.
IVV at Merrill Edge: Preferred Rewards Synergy
Merrill Edge highlights iShares ETFs because BlackRock and Bank of America/Merrill have a close institutional relationship. For Merrill Edge investors:
- IVV is available commission-free
- ITOT, IXUS, AGG, and IEMG (all iShares) build a complete portfolio at Merrill Edge
- IVV balances count toward Preferred Rewards tier qualification
A simple Merrill Edge Roth IRA portfolio: 70% IVV + 30% IXUS at 0.04% blended cost.
Worked Example: $300/Month in IVV Over 25 Years
Assuming 10% gross annualised return (approximate historical S&P 500 long-run average):
| Years | Total contributions | Estimated value |
|---|---|---|
| 10 | $36,000 | ~$62,000 |
| 15 | $54,000 | ~$126,000 |
| 20 | $72,000 | ~$229,000 |
| 25 | $90,000 | ~$398,000 |
At 0.03% expense ratio, IVV charges approximately $120/year when the balance reaches $400,000 — a trivial cost for full S&P 500 exposure.
Internal Links
- SPY vs. VOO: comparing S&P 500 ETFs
- VOO ETF 2026 Review
- Merrill Edge Roth IRA guide
- Merrill Edge Preferred Rewards guide
- Merrill Edge vs. Fidelity
- Merrill Edge investing hub
Bottom Line
IVV is one of the best S&P 500 ETFs available — tied with VOO at 0.03% for the lowest cost among the major fund families. For Merrill Edge investors, IVV is the natural S&P 500 holding: commission-free, deeply liquid, and integrated into the iShares ecosystem used across Merrill’s platform. The IVV vs. VOO debate is essentially settled: both are excellent, and your brokerage platform should be the deciding factor.
This article is for educational purposes only and does not constitute personalised investment advice.
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