IVV Surpasses SPY to Become World’s Second-Largest ETF
SPY slips to No. 3 on the ETF leaderboard.
The iShares Core S&P 500 ETF (IVV) has overtaken the SPDR S&P 500 ETF Trust (SPY) to become the second-largest exchange-traded fund in the world by assets under management.
According to the latest data on etf.com's ETF Screener Tool, IVV held $591.3 billion in assets, narrowly edging past SPY’s $589.8 billion. The shift comes only weeks after the Vanguard S&P 500 ETF (VOO) claimed the top spot from SPY—a position it still holds with $602.3 billion in AUM.
IVV, SPY, VOO Battle for Top Spot
The jockeying for position among the S&P 500 ETFs has been driven by investor flows. VOO has pulled in $34.1 billion in inflows year to date, while IVV has attracted $22.9 billion. SPY, by contrast, has seen $16.6 billion in outflows.
While the leaderboard could still fluctuate in the short term—SPY briefly reclaimed its crown from VOO earlier this year—VOO and IVV appear poised to maintain their lead over time.
Their key advantage is cost. Both funds charge an expense ratio of just 0.03%, compared to SPY’s 0.09%. That makes them particularly attractive to long-term investors focused on minimizing fees.
Where SPY Has the Advantage
That said, SPY will remain a juggernaut for years to come thanks to several entrenched advantages. Launched in 1993 as the first U.S. ETF, it has a deep base of loyal investors who are hesitant to sell due to capital gains and a sense that it’s “good enough.”
More importantly, it remains the most liquid ETF in the world and the centerpiece of a massive options market, keeping it popular with traders and institutions seeking fast, flexible S&P 500 exposure.
Despite losing its top-two status, SPY is unlikely to fall further in the rankings any time soon. The fourth-largest ETF, the Vanguard Total Stock Market ETF (VTI), currently has $451.1 billion in AUM and has brought in $8.5 billion in inflows this year—solid numbers, but not enough to close the $139 billion gap.
Still, if current trends persist, it’s not unthinkable that SPY could eventually slip further down the leaderboard in the future.
