three largest etfs in 2025: a year in review

February 4, 2026

The year 2025 highlighted clear contrasts in how large-cap equity markets performed across geographies. We compare three of the largest U.S. equity ETFs—VOO, IVV, and SPY, all tracking the S&P 500—with India’s flagship large-cap benchmark, the NIFTY 50. Together, these indices represent core equity exposure for global investors seeking stability, scale, and diversification.

The U.S. ETFs follow a passive, market-cap-weighted strategy, offering exposure to 500 of the largest U.S. companies across technology, healthcare, financials, and consumer sectors. Their performance is assessed against the Large Blend ETF category average to gauge relative effectiveness. In contrast, the NIFTY 50 reflects the performance of India’s largest listed companies and captures domestic growth dynamics in an emerging market context.

By examining quarterly momentum and full-year returns, we see that U.S. large-cap equities delivered strong, broad-based gains in 2025, while Indian large caps posted steadier but more moderate returns. The comparison underscores the value of geographic diversification and how market structure and macro conditions shape equity outcomes.

VOO: Vanguard S&P 500 ETF

The Vanguard S&P 500 ETF (VOO) (AUM: $865,311.0 M) tracks the S&P 500 Index, offering diversified exposure to around 500 large-cap U.S. companies across sectors such as technology, healthcare, financials, and consumer discretionary. It follows a passive, market-cap-weighted mandate and is benchmarked against the Large Blend ETF category average.

In 2025, VOO delivered stable performance, broadly tracking but modestly outperforming its category average over the full year. Short-term results were muted, with a 1-month return of 0.08%, at the category average of 0.08%, reflecting early-year market consolidation. However, performance strengthened over the quarter, with a 3-month return of 2.7%, clearly outperforming the category average of 2.21%, indicating effective participation during market rebounds.

Over the full year, VOO generated an annual return of 17.84%, marginally higher than the category average of 15.54%. This outperformance was driven by strong earnings resilience among large-cap constituents and continued leadership from high-quality, cash-generative firms. Overall, VOO’s 2025 results reaffirm its role as a low-cost, core equity holding with reliable annual performance.

Image 1: VOO Price and Volume Charts

Source: ETFDb

IVV: iShares Core S&P 500 ETF

The iShares Core S&P 500 ETF (IVV) (AUM: $766,892.0 M) seeks to replicate the S&P 500 Index, providing exposure to major U.S. corporations through a passive, market-cap-weighted strategy. Its performance is compared against the Large Blend ETF category average, which includes similar large-cap equity funds.

In 2025, IVV demonstrated notable relative strength, particularly over quarterly horizons. The ETF posted a 1-month return of 0.07%, slightly below the category average of 0.08%, reflecting cautious market sentiment. However, over the 3-month period, IVV delivered a return of 2.7%, significantly outperforming the category average of 2.21%, highlighting strong upside capture during periods of recovery.

For the full year, IVV achieved an annual return of 17.85%, comfortably exceeding the category average of 15.54%. This performance reflects IVV’s efficient index tracking, low expense ratio, and exposure to market leaders that benefited from easing inflation pressures and steady corporate earnings. Overall, IVV’s 2025 performance reinforces its effectiveness as a core large-cap allocation with consistent annual outperformance.

Image 2: IVV Price and Volume Charts

Source: ETFDb

SPY: State Street SPDR S&P 500 ETF

The SPDR S&P 500 ETF Trust (SPY) (AUM: $711,936.0 M) tracks the S&P 500 Index and provides diversified exposure to large-cap U.S. equities through a passive, market-cap-weighted mandate. As the most liquid S&P 500 ETF, SPY is benchmarked against the Large Blend ETF category average.

In 2025, SPY’s performance closely mirrored broader market trends while modestly outperforming its category average over the full year. Short-term returns were mixed, with a 1-month return of 0.08%, below the category average of 0.08%, reflecting short-term volatility. Over the 3-month period, SPY delivered 2.66%, significantly higher than the category average of 2.21%, indicating strong participation during market rebounds.

For the full year, SPY generated an annual return of 17.72%, exceeding the category average of 15.54%. This outperformance was supported by sustained strength in large-cap growth stocks and SPY’s efficient market exposure. Overall, SPY’s 2025 performance underscores its continued relevance as a benchmark ETF offering liquidity, scale, and dependable annual returns.

Image 3: SPY Price and Volume Charts

Source: ETFDb

How All Three Performed Relative to NIFTY 50

The NIFTY 50 is India’s benchmark large-cap equity index, representing the performance of the 50 largest and most liquid companies listed on the NSE across key sectors of the Indian economy. While the three U.S. ETFs (VOO, IVV, SPY) all posted double-digit 1-year returns in 2025, comfortably above their category averages. By contrast, the NIFTY 50 exhibited more moderate returns over similar horizons, reflecting different market dynamics in the Indian equity market. NIFTY-tracking ETFs such as Aditya Birla Sun Life Nifty 50 ETF (Symbol: BSLNIFTY) at 8.74%, SBI-ETF NIFTY 50 (Symbol: SETFNIF50) at 12.06% and Nippon India ETF Nifty 50 BeES (Symbol: NIFTYBEES) at 12.5% all posted lower returns to S&P 500 ETFs.

Image 4: S&P 500 and NIFTY 50 ETF Comparison Chart

Source: ETFDb, Groww

The visual clearly highlights the U.S.–India performance gap for large-cap equity ETFs in 2025.

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Harsh Shah, Analyst; Madhav Gupta, Analyst.