BABO vs IVV
YieldMax BABA Option Income Strategy ETF vs iShares Core S&P 500 ETF
Quick Verdict
IVV has a lower expense ratio. IVV delivered stronger 1-year returns. IVV offers more diversification with 505 holdings.
Side-by-Side Comparison
| Metric | BABO | IVV | Winner |
|---|---|---|---|
| Expense Ratio | 1.00% | 0.03% | |
| AUM | $17M | $865.2B | |
| Dividend Yield | 110.77% | 1.09% | |
| Holdings | 11 | 508 | |
| YTD Return | -22.77% | +14.50% | |
| 1Y Return | -8.22% | +22.02% | |
| 3Y Return (annualized) | - | +21.80% | |
| 5Y Return (annualized) | - | +13.37% | |
| Volatility (annualized) | 41.6% | 15.1% | |
| Max Drawdown | -42.6% | -56.5% | |
| Fund Family | YieldMax ETF | iShares by BlackRock (US) | |
| Category | Alternative | Equity | |
| Inception | Aug 7, 2024 | May 15, 2000 |
BABO vs IVV Performance
YieldMax BABA Option Income Strategy ETF (BABO) is a ETF from YieldMax ETF and iShares Core S&P 500 ETF (IVV) is a ETF from iShares by BlackRock (US). Over the past year BABO returned -8.22% while IVV returned +22.02%. Year to date, BABO is down 22.77% versus a gain of 14.50% for IVV.
Risk: Volatility and Drawdowns
BABO has been the more volatile fund, with annualized monthly volatility of 41.6% compared with 15.1% for IVV. Lower volatility generally means a smoother ride, though it often comes with lower long-run returns.
The deepest peak-to-trough decline in our data was -42.6% for BABO and -56.5% for IVV. Drawdown depth is worth weighing if you expect to sell during market stress rather than ride it out.
The two funds' monthly returns correlate at 0.16. They move independently enough that combining them can meaningfully diversify a portfolio.
Fees and Cost Over Time
BABO charges 1.00% per year while IVV charges 0.03%. On a $10,000 position that is $100 vs $3 annually, a gap of $97 per year that compounds over a long holding period. On income, BABO currently yields 110.77% against 1.09% for IVV.
Holdings Overlap
BABO and IVV share 0 holdings out of 508 unique holdings combined, representing a 0.0% weight overlap.
Moderate overlap means holding both could provide meaningful diversification benefits.
Frequently Asked Questions
Which is cheaper, BABO or IVV?
BABO has an expense ratio of 1.00% while IVV charges 0.03%. IVV is the cheaper option. On a $10,000 investment, that is $97 per year of difference.
Which performed better, BABO or IVV?
Over the past year BABO returned -8.22% vs +22.02% for IVV, so IVV leads on 1-year performance. Over the longest common window we track (2 years), BABO annualized +9.04% vs +7.07% for IVV. Past performance does not guarantee future results.
Which is riskier, BABO or IVV?
BABO has been the more volatile fund at 41.6% annualized versus 15.1% for IVV. Worst drawdown: BABO -42.6% vs IVV -56.5%.
Should I hold both BABO and IVV?
BABO and IVV have a monthly-return correlation of 0.16, so combining them can provide real diversification depending on your allocation goals.
What is the holdings overlap between BABO and IVV?
BABO and IVV share 0 common holdings with a 0.0% weight overlap. Combined, they hold 508 unique securities.
Which pays a higher dividend, BABO or IVV?
BABO yields 110.77% while IVV yields 1.09%, so BABO currently pays the higher dividend yield.
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