SPY vs IVV: ETF comparison

What happened: iShares' IVV and State Street's SPY, both S&P 500 ETFs, are being compared for long-term investment. IVV offers a lower expense ratio (0.03% vs. 0.0945%), slightly outperformed SPY in the last year, and has a higher trailing-12-month dividend yield. However, SPY has a longer track record and uses an older UIT structure. Meanwhile, in the semiconductor sector, SOXX outperformed IYW in the last year but carries higher volatility and a deeper historical drawdown.

Market impact: Lower-cost ETFs like IVV and SOXX attract investors seeking efficiency, driving potential asset inflows and increased competition. This could lead to further fee compression in the ETF industry. In the semiconductor sector, SOXX's performance could drive demand for more concentrated, higher-risk exposure to the industry.

What to watch next: Investors should monitor the upcoming earnings reports of the top holdings in IVV, scheduled for Q2 2026, to gauge the fund's growth engine. Additionally, keep an eye on the performance of SMH vs. SOXX as AI infrastructure buildout continues, potentially fueling demand for semiconductor ETFs. Lastly, track the regulatory landscape for ETFs, as any changes could impact the competitive dynamics between SPY, IVV, and other S&P 500 ETFs.