DMO vs IVV
Western Asset Mortgage Opportunity Fund Inc. 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 508 holdings.
Side-by-Side Comparison
| Metric | DMO | IVV | Winner |
|---|---|---|---|
| Expense Ratio | 2.10% | 0.03% | |
| AUM | $128M | $907.0B | |
| Dividend Yield | 13.24% | 1.10% | |
| Holdings | 396 | 508 | |
| YTD Return | +3.66% | +14.29% | |
| 1Y Return | +0.78% | +21.79% | |
| 3Y Return (annualized) | +12.22% | +22.19% | |
| 5Y Return (annualized) | +3.51% | +13.28% | |
| Volatility (annualized) | 14.5% | 15.1% | |
| Max Drawdown | -60.2% | -56.5% | |
| Fund Family | Franklin Templeton Investments (US) | iShares by BlackRock (US) | |
| Category | Fixed Income | Equity | |
| Inception | Feb 24, 2010 | May 15, 2000 |
DMO vs IVV Performance
Western Asset Mortgage Opportunity Fund Inc. (DMO) is a ETF from Franklin Templeton Investments (US) and iShares Core S&P 500 ETF (IVV) is a ETF from iShares by BlackRock (US). Over the past year DMO returned +0.78% while IVV returned +21.79%. Year to date, DMO is up 3.66% versus a gain of 14.29% for IVV.
Over three years, DMO compounded at +12.22% per year against +22.19% for IVV; over five years the annualized figures are +3.51% and +13.28% respectively. Across the full 17-year window we track, IVV has the edge at +7.06% annualized vs -0.05%. Past performance does not guarantee future results.
Risk: Volatility and Drawdowns
IVV has been the more volatile fund, with annualized monthly volatility of 15.1% compared with 14.5% for DMO. 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 -60.2% for DMO 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 0.45. They move independently enough that combining them can meaningfully diversify a portfolio.
Fees and Cost Over Time
DMO charges 2.10% per year while IVV charges 0.03%. On a $10,000 position that is $210 vs $3 annually, a gap of $207 per year that compounds over a long holding period. On income, DMO currently yields 13.24% against 1.10% for IVV.
Holdings Overlap
DMO and IVV share 0 holdings out of 530 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, DMO or IVV?
DMO has an expense ratio of 2.10% while IVV charges 0.03%. IVV is the cheaper option. On a $10,000 investment, that is $207 per year of difference.
Which performed better, DMO or IVV?
Over the past year DMO returned +0.78% vs +21.79% for IVV, so IVV leads on 1-year performance. Over the longest common window we track (17 years), DMO annualized -0.05% vs +7.06% for IVV. Past performance does not guarantee future results.
Which is riskier, DMO or IVV?
IVV has been the more volatile fund at 15.1% annualized versus 14.5% for DMO. Worst drawdown: DMO -60.2% vs IVV -56.5%.
Should I hold both DMO and IVV?
DMO and IVV have a monthly-return correlation of 0.45, so combining them can provide real diversification depending on your allocation goals.
What is the holdings overlap between DMO and IVV?
DMO and IVV share 0 common holdings with a 0.0% weight overlap. Combined, they hold 530 unique securities.
Which pays a higher dividend, DMO or IVV?
DMO yields 13.24% while IVV yields 1.10%, so DMO currently pays the higher dividend yield.
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