IVW vs. VV: iShares’ growth ETF holds almost nothing Vanguard’s doesn’t, at six times the fee

For a core holding of large U.S. companies, the Vanguard Morningstar Large-Cap ETF, VV, is the better fund. It charges 0.03% a year. The iShares S&P 500 Growth ETF, IVW, charges 0.18%, six times as much. On $10,000, the difference is $15 a year.

Buy IVW if you already own the broad market and want a growth tilt on top. It will not stand in for a broad fund of large U.S. companies if it is your only U.S. stock fund.

IVW vs. VV at a glance

IVW tracks the S&P 500 Growth Index. iShares describes it as large U.S. companies chosen for strong growth, including above-average earnings and sales growth.

VV tracks the Morningstar US Large Cap Index. Vanguard's Sept. 30, 2026 fact sheet describes it as large U.S. companies, growth and value together, making up the top 85% of the U.S. stock market by value.

VV was the Vanguard Large-Cap ETF until July 29, 2026. In its summary prospectus, Vanguard said the fund's objective, strategies and policies did not change.

Valuation and sector exposures

As of Sept. 30, IVW’s index had a price-to-earnings (P/E) ratio of 27.2 and a price-to-book (P/B) ratio of 8.6. VV’s were 24.9 and 5.5., respectively. The companies in IVW’s index increased earnings 35.4% a year over the past five years, and VV’s increased earnings 24.6%.

IVW’s three-year standard deviation, a measure of volatility, was 16.13%. VV’s was 12.63%. From 2016 through 2025, IVW’s best quarter was a 26.16% gain and its worst a 20.84% loss. VV’s best was a 21.40% gain and its worst a 19.45% loss.

Technology and communications stocks made up about 69.5% of IVW’s index and 49.1% of VV. Vanguard uses a different sector system for each fund, so the comparison is approximate. IVW’s index held no energy stocks and had 6.1% in health care, against 3.5% and 8.7% for VV.

The 10 largest holdings were 62.7% of IVW’s index and 40.9% of VV. Nvidia alone was 15.0% of IVW’s index and 8.1% of VV. IVW’s 30-day SEC yield was 0.38%, and VV’s was 0.98%.

How much IVW and VV overlap

135 companies sit in both funds. Those shared companies are 99.1% of the weight in IVW and 69% of the weight in VV.

What IVW holds on its own is under 1% of its weight. VV's other holdings are 31% of its weight, including Exxon Mobil, Walmart, Costco, Chevron, Procter & Gamble and UnitedHealth.

The shared companies are not held alike. Nvidia is 14.6% of IVW and 8.1% of VV. Microsoft is 11.0% against 5.9%, and Alphabet is 9.4% against 5.6%.

Apple goes the other way, 7.0% in the growth fund and 7.5% in VV.

Index returns explain the performance gap between the two funds

The returns in this section include dividends. In 2025, IVW returned 21.95% and VV returned 18.10%.

IVW trailed the S&P 500 Growth Index by 0.23 percentage points, and VV trailed its benchmark by 0.04 percentage points. The gap between the funds that year came from the indexes.

Calendar-year figures, from iShares' fact sheet and Vanguard's summary prospectus:

In 2022, VV finished 9.8 percentage points ahead. In the other three years, IVW finished ahead. The widest of those leads was 10.7 percentage points, in 2024.

IVW still leads through Sept. 30, 2026. On that same basis, iShares and Vanguard's fact sheet report:

The five-year figures are the closest of the four. That period is the one that includes 2022.

Owning both replicates the same stocks

Owning both does not hedge one with the other. It adds exposure to Nvidia, Microsoft and Alphabet, which already lead the growth fund and sit near the top of VV.