BlackRock (NYSE: BLK) and Vanguard are two of the largest exchange-traded fund (ETF) issuers in the world.
The investment vehicles offered by these two finance giants cover just about every facet one could think of. Whether investors are after exposure to a certain class of stocks, a particular sector, or an emergent theme, odds are either BlackRock or Vanguard — or most commonly, both, can provide.
With each of these behemoths, wide-market index funds are the most popular choice. Offering simple exposure to the entirety of the Standard and Poor’s 500 (S&P 500) index, these ETFs offer an easy way to secure the gains made by some of the biggest publicly traded ventures on the planet.
Picks for you
Unsurprisingly, the two funds in either corner — Vanguard’s S&P 500 ETF (NYSE: VOO) and BlackRock’s iShares Core S&P 500 ETF (NYSE: IVV) both enjoy high liquidity and solid performance. In fact, the two are almost mirror images — a vast majority of the metrics that we can use to compare them to one another would just turn out identical.
However, when pitting Vanguard vs BlackRock using their two most popular ETFs, there are a few subtle differences — and for investors eager to squeeze every iota of gain from the markets, those details could provide a hint as to which
Vanguard vs. BlackRock — two solid bets with negligible differences
First, let’s deal with returns. In 2024, VOO provided a 24.98% gain — and while IVV’s returns were smaller, at 24.93%, the difference really doesn’t amount to much.
Our second order of business will be fees. Initially, Vanguard had the advantage over BlackRock on this front. However, at present, both of these ETFs come with a 0.03% expense ratio.
In terms of liquidity, both are evenly matched — and the same holds true for the trailing price-to-earnings (PE). VOO has a slightly larger market capitalization — while IVV has a slight edge when it comes to dividend payments — although, as noted earlier, that doesn’t necessarily translate into superior returns. Readers should also note that VOO is legendary investor Warren Buffett’s preference.
Ultimately, both of these ETFs are solid choices — while neither is poised, by design, to outperform the market, both VOO and IVV do an excellent job of being the core of a long-term portfolio. Once everything is taken into account, we’d give the edge to VOO on account of its slightly higher returns.
Investors who have a greater risk tolerance should also consider Vanguard’s S&P 500 Growth ETF (NYSEARCA: VOOG), which has a higher exposure to tech stocks.
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