The iron does prevent anemia in babies. The low-iron formulas do not have enough iron to prevent anemia. The American Academy of Pediatrics has stated that there is no place for the routine use of these formulas. Please note that breast milk does contain iron. If you are breast-feeding, your baby will be getting all the iron he needs from your breast milk.
Many parents are also concerned about spitting up.
Most babies do this to some extent, and some much more than others. Only rarely does it indicate any problem for the baby. As long as your baby is growing well, then he is probably doing fine. However, be sure to talk to your health care provider about any concerns you have. This should help your baby develop a taste for plain water.