IVV vs. SPY: Which S&P 500 ETF Is the Better Buy for Long-Term Investors?
iShares Core S&P 500 ETF (NYSEMKT:IVV) provides more affordable access to the S&P 500 than State Street SPDR S&P 500 ETF (NYSEMKT:SPY), offering a lower expense ratio and a higher distribution yield.
Both funds aim to mirror the performance of the S&P 500, the primary benchmark for the U.S. large-cap market. While the State Street trust is the industry’s oldest and most liquid trading tool, the iShares fund has grown significantly by appealing to long-term investors through its cost efficiency. This match-up explores whether the lower-cost option is the more effective building block for a portfolio.
Beta measures price volatility relative to the S&P 500; beta is calculated from monthly returns over the available fund history (up to five years). The 1-yr return represents total return over the trailing 12 months. Dividend yield is the trailing-12-month distribution yield.
Source: www.fool.com — article syndicated from the publisher’s feed; all rights remain with the original publisher.