If You Own IVV, This Quality-Screened Large-Cap ETF Deserves a Look Before You Add More

The iShares Core S&P 500 ETF (NYSEARCA:IVV) is one of the most common core holdings in America, and IVV won that spot by putting the whole S&P 500 into one trade. Investors buy it because it requires no stock picking and no view on which companies will lead next. That is a sound reason to own it. Even so, a JPMorgan fund that picks large U.S. companies based on quality characteristics, the JPMorgan U.S. Quality Factor ETF (NYSEARCA:JQUA), has beaten IVV over the past five years.

Both funds’ five-year windows start on November 3, 2021. Over that time, JQUA returned 83.63%, and the S&P 500 fund returned 74.59%, a gap of 9.04 points. Both figures assume distributions were reinvested. A $100,000 investment in JQUA grew to $183,630. An equal amount in IVV grew to $174,590.

JQUA Leads IVV in Every Window We Measured

The one-year window starts on October 31, 2025. For an IVV holder, what stands out is how consistent the lead is. JQUA was ahead over five years, over the past 12 months, and so far this year. In the past month, it gained while the S&P 500 fund lost ground. IVV did not come out ahead in any window in our data.

How a Quality Screen Builds a Different Portfolio

IVV targets results that match, in general, the price and yield performance of the S&P 500 Index. It owns every company in the index and weights each one by market value. When you buy IVV, you get the large-cap market as it stands.

JQUA tracks an underlying index made up of U.S. equity securities selected to represent quality factor characteristics, and it must keep at least 80% of its assets in securities from that index. Put simply, a rules-based screen picks large U.S. companies based on financial quality. That leaves JQUA with a narrower group of stocks, weighted differently from the S&P 500. Switching from IVV means giving up the complete index for a portfolio filtered by a set of rules.

Why IVV Still Earns Its Place for Many Investors

A broad index fund owns every company in its index. It never misses a stretch when the companies a quality screen leaves out are the ones leading the market. A rules-based fund can lag during those periods. Five years of outperformance does not guarantee the pattern will continue. Our data does not support predicting what either fund will return from here.

IVV also keeps you matched to the benchmark that most investors, advisors, and target-date plans use to measure themselves. If you would be uncomfortable trailing the S&P 500 for a few years, that matters as much as any return figure.

Making the Move Without a Surprise Tax Bill

In a taxable account, selling IVV realizes capital gains, and five years of gains can add up to a large tax bill. Inside an IRA or 401(k), trades within the account do not create a tax event. In a taxable account, some investors direct new contributions and dividends to JQUA and leave existing IVV shares alone. That moves your mix over time without selling anything. Some investors hold both, keeping IVV as the core and using JQUA as a quality tilt next to it.

Which Investor Profile Fits Each Fund

JQUA’s approach suits those seeking large-cap U.S. exposure who are comfortable with a narrower, rules-based portfolio in exchange for a record of beating IVV in every window we measured. New contributions to accounts with tax benefits avoid the tax cost of a switch. Those who want the entire index, who want returns that match the benchmark everyone compares against, or who have large unrealized gains in IVV in a taxable account may find the S&P 500 fund a better fit.

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