Today’s post compares the two hugely popular ETFs: SPY (SPDR S&P 500 ETF) and IVV (iShares Core S&P 500 ETF). These funds are 2 of the largest in existence based on market cap and volume… and for good reason… they are all around excellent funds.
IVV ETF tracks the performance of the S&P 500 as its underlying index. Approximately 90% of the fund’s assets are invested in securities and depositary receipts of the underlying index.
The SPY fund is very similar in that it is built to provide results that correspond to the price and yield performance of the S&P 500 index. The fund holds a portfolio of stocks that are included in the index, with the weight of each stock corresponding to the weight of the stock in the index.
The funds have a number of similarities, as well as a few differences. In this post I attempt to help explain some of these similarities and differences.