IVV is the stock code of iShares Core S&P 500 ETF. IVV is the second largest ETF in the world. It was issued by iShares (which belongs to BlackRock) in 2000. It tracks the S&P500 index and has a large fund size and excellent liquidity. It is a very well-known ETF. The investment purpose of IVV ETF is to track the most important large blue-chip stocks in the US stock market at a low cost. The main constituent stocks include Microsoft, Apple, AMAZON, FB, Google, Johnson & Johnson, Berkshire, VISA, Baoqiao and other well-known companies, with a total of about 500 constituent stocks.

VOO is the stock code of Vanguard S&P 500 ETF, which is issued by Vanguard (the US Vanguard Group), a world-renowned fund management company. Since its establishment in 2010, the ETF has been tracking the S&P 500 Index. The S&P 500 is a widely recognized market benchmark that includes the stocks of the 500 largest and most liquid companies in the U.S. market. These companies are generally considered large-cap blue-chip stocks and represent an important part of the U.S. economy. VOO's constituents include globally renowned companies such as Google (Alphabet Inc.), Apple Inc., Amazon.com, Inc., and Microsoft Corporation. These companies are generally considered safe choices for investment due to their size, market position, and financial soundness.

IVV and VOO - Low Fees, Small Errors

Both IVV and VOO are suitable for investors who want to track the U.S. large-cap index with a low expense ratio.

• Both IVV and VOO have extremely low expense ratios of 0.03%. Both seek to attract investors through low fees.
• Both IVV and VOO have very small tracking errors. Over the years, IVV has a tracking error of 0.04% for the 5-year period shown in the table, which is similar to the expense ratio of 0.03%. VOO has a tracking error of 0.04% over the past five years, which is only 0.01% higher than the original expense rate of 0.03%. The tracking error is quite small.

What are the constituent stocks of IVV and VOO?

VOO's top 15 holdings almost occupy the core position of the US stock market. The top 10 holdings account for 29% of all holdings. The holdings include Apple Inc., Microsoft Corporation, Amazon.com, Inc., Tesla, Inc., Alphabet Inc., NVIDIA Corporation, Berkshire Hathaway Inc., and Facebook (now renamed Meta Platforms, Inc.).

Among these holdings, Apple is VOO's largest single holding, accounting for about 7%. This ratio shows that VOO's investment portfolio is not overly concentrated in any single stock, thereby reducing the risk of a single stock fluctuation having a significant impact on the entire ETF, reflecting its advantage of diversified investment. In addition, from the perspective of industry distribution, information technology stocks account for the largest proportion, about 27.4%. It is followed by industries such as healthcare, consumer discretionary, communications, and finance. This diversified industry composition shows that VOO has balanced investments across different economic sectors, avoiding over-reliance on a particular industry, further enhancing its diversification effect.

IVV's holdings are very similar to VOO's, mostly in large-cap U.S. stocks. Among IVV's holdings, the top 10 stocks account for a total of about 26%, which also shows the diversification of its portfolio. Its largest components include Microsoft Corporation, Apple Inc., and Amazon.com, Inc., with the largest single holding accounting for slightly more than 5%. This holding structure also focuses on reducing the impact of a single stock's volatility on the performance of the entire ETF, thereby providing the advantage of risk diversification. In terms of industry distribution, IVV's portfolio also shows a wide range of diversity. Information technology stocks rank first with a share of 26.88%, followed by healthcare, consumer discretionary, communications, and financial industries.

Comparison of SPY, VOO, and IVV

SPY (SPDR S&P 500 ETF Trust), a well-known stock tracking the S&P 500 Index, is often compared with VOO and IVV.

• SPY has the most expensive handling fee due to its long history, while VOO and IVV have extremely low handling fees.
• SPY has the largest average daily trading volume, with an average daily trading volume of about 78 million shares in 3 months; VOO is 4.7 million shares; IVV is 5.3 million shares, and the liquidity of the three is very good.
• SPY has the largest tracking error, while IVV and VOO have extremely low tracking errors, but this year they are close.
• SPY pays the most dividends, but the gap with VOO and IVV is very small. In the past 4 times, SPY has paid dividends of about US$6, VOO has paid US$5.7, and IVV has paid US$5.9.

How to trade on uSMART:

After logging into the uSMART SG APP, click "Search" from the top right of the page, enter the target code, such as "IVV", to enter the details page to learn about the transaction details and historical trends, click "Trade" in the lower right corner, select the "Buy/Sell" function, and finally fill in the transaction conditions and submit the order; the picture operation instructions are as follows:

Source: uSMART SG

Follow us

Find us on Twitter, Instagram, YouTube, and TikTok for frequent updates on all things investing.

Have a financial topic you would like to discuss? Head over to the uSMART Community to share your thoughts and insights about the market! Click the picture below to download and explore uSMART app！

Important Notice and Disclaimer:

We have based this article on our internal research and information available to the public from sources we believe to be reliable. While we have taken all reasonable care in preparing this article, we do not represent the information contained in this article is accurate or complete and we accept no responsibility for errors of fact or for any opinion expressed in this article. Opinions, projections and estimates reflect our assessments as of the article date and are subject to change. We have no obligation to notify you or anyone of any such change. You must make your own independent judgment with respect to any matter contained in this article. Neither we or our respective directors, officers or employees will be responsible for any losses or damages which any person may suffer or incur as a result of relying upon anything stated or omitted from this article.

This document should not be construed in any jurisdiction as constituting an offer, solicitation, recommendation, inducement, endorsement, opinion, or guarantee to purchase, sell, or trade any securities, financial products, or instruments or to engage in any investment or any transaction of any kind, nor is there any intention to solicit or invite the purchase or sale of any securities.

The value of these securities and the income from them may fall or rise. Your investment is subject to investment risk, including loss of income and capital invested. Past performance figures as well as any projection or forecast used in this article is not indicative of its future performance.

This advertisement has not been reviewed by the Monetary Authority of Singapore