How do the expense ratios of SPLV and SPY differ, and what does this imply?

SPLV has an expense ratio of 0.25%, while SPY's is 0.09%. The 0.16% difference may seem small but can impact long-term returns. A higher fee means a greater portion of your investment is deducted annually for fund management, potentially reducing net growth over time. For instance, on a $10,000 investment, the annual fee for SPLV would be $25 versus $9 for SPY. These deductions compound over years, making the expense ratio a crucial factor for cost-sensitive investors.

What is the significance of net assets in comparing SPLV and SPY?

SPLV has net assets of $7.2 billion, whereas SPY boasts $785.0 billion. Larger net assets typically indicate greater liquidity and tighter bid-ask spreads, which can lower trading costs. SPY's substantial asset base ensures it is one of the most traded ETFs globally, facilitating easy entry and exit with minimal price impact. SPLV, being smaller, may experience wider spreads and higher transaction costs, which could affect active traders.

How do the top holdings of SPLV and SPY compare?

SPLV's top holdings include BRK.B (1.41%), FE (1.27%), and DUK (1.27%), focusing on defensive sectors like utilities and consumer staples. In contrast, SPY's top holdings are NVDA (8.16%), AAPL (7.44%), and MSFT (5.56%), representing major technology firms. There is no overlap in their top ten holdings, highlighting different strategies: SPLV tilts towards low volatility and value stocks, while SPY mirrors the broader market cap-weighted S&P 500 with significant growth exposure.

What are the dividend yields of SPLV and SPY, and how do distributions work?

SPLV offers a dividend yield of 2.28%, significantly higher than SPY's 0.98%. This reflects SPLV's focus on income-generating, low-volatility stocks. ETFs distribute dividends quarterly, with payments depending on the underlying companies' earnings. For income-focused investors, SPLV's yield could be appealing, but note that past yields don't guarantee future distributions. Understanding the consistency of these payments is vital for long-term planning.

Which index do SPLV and SPY track, and how does this affect their performance?

SPY aims to replicate the S&P 500 Index, providing broad market exposure. Its performance closely follows the overall health of the U.S. large-cap equity market. SPLV, while associated with the S&P 500, focuses on its low-volatility subset. This means SPLV might outperform during market downturns but lag during robust growth phases. Investors should align these funds with their risk tolerance and market outlook.

How do the inception dates of SPLV and SPY impact their suitability?

SPY launched in January 1993, giving it a 33-year track record, ideal for backtesting and long-term comparisons. SPLV started in May 2011, offering 15 years of history. While both funds have established performance, SPY's longer history provides more extensive data for analysing behavior through different market cycles. Investors might prefer SPY for its historical robustness unless seeking SPLV's specific low-volatility characteristics.

What are the risks associated with concentration in top holdings?

SPY's top ten holdings constitute nearly 37% of its assets, presenting concentration risk. If a single large company underperforms, it significantly impacts SPY's value. Conversely, SPLV's largest holding, BRK.B, makes up only 1.41%. This diversified approach reduces vulnerability to individual stock performances but may also dilute gains if a few companies excel. Assessing this risk-reward balance is key for informed investment decisions.

What is the impact of the different sector weights on SPLV and SPY?

SPLV concentrates in utilities and consumer staples, sectors typically considered defensive. This strategy aims to reduce volatility but can limit growth during bull markets. On the other hand, SPY mirrors the broader market with heavy investments in technology, contributing to higher growth potential but also higher volatility. Understanding sector allocations helps investors anticipate how each fund might react in varying economic conditions.

Why is SPLV's low-volatility strategy significant?

SPLV tilts its portfolio towards lower-volatility stocks within the S&P 500, focusing on defensive sectors. This approach aims to reduce overall portfolio volatility, which can be beneficial for risk-averse investors seeking stability. During economic downturns, these stocks tend to perform more resiliently compared to high-growth sectors, though they might offer less upside in strong market conditions.

How should a beginner investor interpret the differences in expense ratios and dividend yields between SPLV and SPY?

Beginner investors should consider both expense ratios and dividend yields as critical factors. SPLV's 0.25% expense ratio is higher than SPY's 0.09%, meaning it costs more to hold annually. However, SPLV offers a 2.28% dividend yield, much higher than SPY's 0.98%, which might appeal to income-focused investors. Balancing cost efficiency with income needs is essential for aligning the investment with long-term financial goals.

What are the key differences in index tracking between SPLV and SPY?

SPY tracks the full S&P 500 Index, offering broad exposure to 500 leading U.S. companies across all sectors. SPLV, however, selects the 100 lowest volatility stocks from the S&P 500, resulting in a different risk-return profile. While SPY captures overall market performance, SPLV emphasizes reduced volatility and potentially more stable returns.

Why might some investors prefer SPY despite its higher concentration in top holdings?

Investors might prefer SPY for its extremely low expense ratio of 0.09%, vast liquidity, and broad market exposure. Despite the concentration in top holdings, SPY's long history since 1993 and its status as one of the world's most traded ETFs provide confidence in its ability to mirror overall market performance effectively.

SPLV vs SPY

Two funds, one decision: we compare cost, performance and what each ETF actually holds in September 2026.

Compare the S&P 500 Low Volatility ETF PowerShares (SPLV) and the S&P 500 ETF Trust SPDR (SPY). Explore their expense ratios, top holdings, dividend yields, and how each fund tracks the S&P 500. Educational content, not financial advice.

Compare the S&P 500 Low Volatility ETF PowerShares (SPLV) and the S&P 500 ETF Trust SPDR (SPY). Explore their expense ratios, top holdings, dividend yields, and how each fund tracks the S&P 500. Educa...

Fund Snapshot

Key Fund Metrics

SPLV

Metric

SPY

0.25%

Expense Ratio

0.09%

2.28%

Dividend Yield

0.98%

$7.19B

Net Assets

$785.05B

107

Holdings

505

May 5, 2011

Inception Date

Jan 22, 1993

–

Index Tracked

–

Large Value

Fund Category

Large Blend

SPY costs about $16.00 less per year for every $10,000 invested.

Shared Top Holdings

These funds do not share any of their top holdings.

Discover More Comparisons

SPLV vs VTV

Compare SPLV and VTV on expense ratios, net assets, dividend yields, and top holdings like BRK.B. Review tracking differences and key metrics.

SPLV vs VOO

Compare SPLV and VOO on fees, yields and holdings. VOO tracks S&P 500; SPLV focuses on low volatility. See 0.25% vs 0.03% expense ratios and data.

SPLV vs SPYM

Compare SPLV and SPYM ETFs. Review fees, dividends, holdings and tracking. SPLV yields 2.28% with 0.25% fee; SPYM yields 1.00% with 0.02% fee.

Investment Analysis

SPLV

Pros

Low volatility factor tilts portfolio toward defensive sectors and large value stocks.
Dividend yield of 2.28 percent is more than double that of broader market benchmark.
Inception date of May 2011 provides a meaningful track record for performance analysis.

Considerations

Expense ratio of 0.25 percent is higher than broader S&P 500 market cap-weighted alternatives.
Top holdings list indicates a concentration in utilities and consumer staples rather than growth.
Index methodology is not available, limiting transparency regarding the underlying benchmark construction.

SPY

Pros

Expense ratio of 0.09 percent represents a low cost for broad US equity exposure.
Net assets of 785 billion dollars ensure deep liquidity and tight bid-ask spreads.
Inception date of January 1993 offers the longest history for backtesting and comparison.

Considerations

Dividend yield of 0.98 percent is significantly lower than many income-focused equity ETFs.
Top ten holdings account for nearly 37 percent of fund, creating concentration risk.
Index tracked field is not available, although it is commonly associated with the S&P 500.

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About SPLV and SPY

SPLV (SPLV)

SPLV (Invesco S&P 500® Low Volatility ETF) is an exchange-traded fund that seeks to offer S&P 500 exposure with reduced price swings. The fund tracks a rules-based index that selects stocks from the S&P 500 with lower historical volatility and weights them to favour more stable names. Investors often consider SPLV when they want equity market participation but hope for a smoother ride compared with the full S&P 500. It can act as a defensive sleeve within a diversified portfolio, but it is still subject to market risk — returns can fall and are not guaranteed. SPLV’s strategy may underperform in strong bull markets where higher-volatility stocks lead, and its sector and factor tilts can differ from the broad market. Suitable for investors seeking lower short‑term volatility and prepared for equity risk over the medium to long term, it is educational to compare fees, tracking error and holdings before investing.

SPY (SPY)

SPDR S&P 500 ETF Trust (SPY) is an exchange‑traded fund designed to track the S&P 500 index, offering investors broad exposure to large‑capitalisation US equities. It is widely used by retail and institutional investors for core portfolio allocation, tactical trading and hedging because of its deep liquidity and transparent holdings. SPY distributes dividends (typically quarterly) and reflects the performance of the underlying index, so returns move with the US large‑cap market. As with any equity product, value can fall as well as rise and past performance is not a guide to the future. Costs, tax considerations and suitability will depend on an individual’s circumstances; consult official documents and consider seeking independent advice where appropriate. This summary is general educational information and not personalised investment advice.

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