Investors seeking a low-cost, long-term strategy can consider SPY and IVV, two widely held S&P 500 ETFs with strong track records and low expense ratios. Both funds offer broad market exposure and are designed for buy-and-hold investors.
- SPY and IVV are two S&P 500 ETFs recommended for long-term buy-and-hold strategies.
- SPY has $450 billion in assets and a 0.095% expense ratio; IVV holds $275 billion with a 0.03% expense ratio.
- Both ETFs track the S&P 500, providing exposure to technology, financials, and healthcare sectors.
- A $100 investment in either ETF could grow to $387 over 20 years at a 7% annual return.
- The S&P 500 has delivered an average annual return of 10% since 1950.
For investors looking to build wealth over decades with minimal effort, two S&P 500 exchange-traded funds—SPY and IVV—stand out as enduring options. Each fund tracks the S&P 500 Index, which includes 500 of the largest publicly traded companies in the United States, spanning sectors such as technology, financials, and healthcare. SPY, launched in 1993, is the most traded ETF in the world, with over $450 billion in assets under management as of 2025. It has an expense ratio of 0.095%, making it cost-efficient for long-term holdings. IVV, offered by Vanguard, launched in 2000 and holds approximately $275 billion in assets, with a lower expense ratio of 0.03%. Both ETFs have consistently mirrored the performance of the S&P 500, which has delivered an average annual return of about 10% since 1950. With a $100 investment, investors can gain diversified exposure to the U.S. equity market. Over 20 years, assuming a 7% annual return, a $100 initial investment in either ETF could grow to approximately $387. This compounding effect underscores the power of long-term holding in low-cost index funds. These ETFs are particularly appealing to passive investors who want to avoid stock-picking risks and benefit from the long-term growth of the U.S. economy. Institutional and retail investors alike have used SPY and IVV as foundational components of retirement portfolios, 401(k)s, and taxable accounts.