Battle for top ETF crown among SPY, IVV, and VOO as S&P 500 faces swings

From Nasdaq: 2025-04-08 10:30:00

The S&P 500 faced drastic fluctuations post-Trump’s tariff announcement, losing over 10% in two days, wiping out $5 trillion. Yesterday, it swung wildly from 5,246.57 to 4,835.04, closing down 0.2% but hitting an 8.6% intraday low. Concerns over tariffs have the index trading at levels from a year ago.

The recent pullback in the S&P 500 has improved its valuation, now at a forward P/E ratio of 19.4, lower than the 5-year average of 19.9 and closer to the 10-year average of 18.3. Popular ETFs tracking the index, like SPY, IVV, and VOO, are now in high demand due to attractive valuations.

VOO became the largest ETF in mid-February, followed by IVV in March, surpassing SPY. Despite similar holdings, SPY has the highest trading volume and a 0.09% expense ratio, while VOO and IVV have lower costs at 3 bps. VOO and IVV also have better tax efficiency and reinvestment options.

Investors are flocking to VOO and IVV due to their low fees, tax efficiency, and dividend reinvestment options. SPY remains attractive for its high trading volume, making it easy to buy and sell large amounts without extra costs.

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