DSM vs IVV
BNY Mellon Strategic Municipal Bond 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 505 holdings.
Side-by-Side Comparison
| Metric | DSM | IVV | Winner |
|---|---|---|---|
| Expense Ratio | 1.09% | 0.03% | |
| AUM | $365M | $865.2B | |
| Dividend Yield | 4.47% | 1.09% | |
| Holdings | 229 | 508 | |
| YTD Return | -1.90% | +13.72% | |
| 1Y Return | +9.01% | +21.64% | |
| 3Y Return (annualized) | +6.38% | +21.55% | |
| 5Y Return (annualized) | -2.51% | +13.27% | |
| Volatility (annualized) | 12.8% | 15.1% | |
| Max Drawdown | -59.3% | -56.5% | |
| Fund Family | BNY Mellon Investment Management | iShares by BlackRock (US) | |
| Category | Tax Preferred | Equity | |
| Inception | Nov 22, 1989 | May 15, 2000 |
DSM vs IVV Performance
BNY Mellon Strategic Municipal Bond Fund Inc (DSM) is a ETF from BNY Mellon Investment Management and iShares Core S&P 500 ETF (IVV) is a ETF from iShares by BlackRock (US). Over the past year DSM returned +9.01% while IVV returned +21.64%. Year to date, DSM is down 1.90% versus a gain of 13.72% for IVV.
Over three years, DSM compounded at +6.38% per year against +21.55% for IVV; over five years the annualized figures are -2.51% and +13.27% respectively. Across the full 26-year window we track, IVV has the edge at +7.04% annualized vs -0.67%. 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 12.8% for DSM. 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 -59.3% for DSM 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 0.28. They move independently enough that combining them can meaningfully diversify a portfolio.
Fees and Cost Over Time
DSM charges 1.09% per year while IVV charges 0.03%. On a $10,000 position that is $109 vs $3 annually, a gap of $106 per year that compounds over a long holding period. On income, DSM currently yields 4.47% against 1.09% for IVV.
Holdings Overlap
DSM and IVV share 0 holdings out of 636 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, DSM or IVV?
DSM has an expense ratio of 1.09% while IVV charges 0.03%. IVV is the cheaper option. On a $10,000 investment, that is $106 per year of difference.
Which performed better, DSM or IVV?
Over the past year DSM returned +9.01% vs +21.64% for IVV, so IVV leads on 1-year performance. Over the longest common window we track (26 years), DSM annualized -0.67% vs +7.04% for IVV. Past performance does not guarantee future results.
Which is riskier, DSM or IVV?
IVV has been the more volatile fund at 15.1% annualized versus 12.8% for DSM. Worst drawdown: DSM -59.3% vs IVV -56.5%.
Should I hold both DSM and IVV?
DSM and IVV have a monthly-return correlation of 0.28, so combining them can provide real diversification depending on your allocation goals.
What is the holdings overlap between DSM and IVV?
DSM and IVV share 0 common holdings with a 0.0% weight overlap. Combined, they hold 636 unique securities.
Which pays a higher dividend, DSM or IVV?
DSM yields 4.47% while IVV yields 1.09%, so DSM currently pays the higher dividend yield.
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