FALN vs IVV
iShares Fallen Angels USD Bond 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 508 holdings.
Side-by-Side Comparison
| Metric | FALN | IVV | Winner |
|---|---|---|---|
| Expense Ratio | 0.25% | 0.03% | |
| AUM | $1.6B | $907.0B | |
| Dividend Yield | 6.51% | 1.10% | |
| Holdings | 159 | 508 | |
| YTD Return | +2.62% | +12.71% | |
| 1Y Return | +6.43% | +21.89% | |
| 3Y Return (annualized) | +9.20% | +22.08% | |
| 5Y Return (annualized) | +3.57% | +12.96% | |
| Volatility (annualized) | 9.4% | 15.1% | |
| Max Drawdown | -30.0% | -56.5% | |
| Fund Family | iShares by BlackRock (US) | iShares by BlackRock (US) | |
| Category | Fixed Income | Equity | |
| Inception | Jun 14, 2016 | May 15, 2000 |
FALN vs IVV Performance
iShares Fallen Angels USD Bond ETF (FALN) is a ETF from iShares by BlackRock (US) and iShares Core S&P 500 ETF (IVV) is a ETF from iShares by BlackRock (US). Over the past year FALN returned +6.43% while IVV returned +21.89%. Year to date, FALN is up 2.62% versus a gain of 12.71% for IVV.
Over three years, FALN compounded at +9.20% per year against +22.08% for IVV; over five years the annualized figures are +3.57% and +12.96% respectively. Across the full 10-year window we track, IVV has the edge at +7.00% annualized vs +3.72%. 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 9.4% for FALN. 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 -30.0% for FALN 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 0.79. They usually move together, but the gap leaves some room for diversification.
Fees and Cost Over Time
FALN charges 0.25% per year while IVV charges 0.03%. On a $10,000 position that is $25 vs $3 annually, a gap of $22 per year that compounds over a long holding period. On income, FALN currently yields 6.51% against 1.10% for IVV.
Holdings Overlap
FALN and IVV share 1 holdings out of 655 unique holdings combined, representing a 0.1% weight overlap.
Moderate overlap means holding both could provide meaningful diversification benefits.
Top Shared Holdings
| Stock | Weight in FALN | Weight in IVV | Difference |
|---|---|---|---|
| XTSLA | 0.81% | 0.15% | 0.66% |
Frequently Asked Questions
Which is cheaper, FALN or IVV?
FALN has an expense ratio of 0.25% while IVV charges 0.03%. IVV is the cheaper option. On a $10,000 investment, that is $22 per year of difference.
Which performed better, FALN or IVV?
Over the past year FALN returned +6.43% vs +21.89% for IVV, so IVV leads on 1-year performance. Over the longest common window we track (10 years), FALN annualized +3.72% vs +7.00% for IVV. Past performance does not guarantee future results.
Which is riskier, FALN or IVV?
IVV has been the more volatile fund at 15.1% annualized versus 9.4% for FALN. Worst drawdown: FALN -30.0% vs IVV -56.5%.
Should I hold both FALN and IVV?
FALN and IVV have a monthly-return correlation of 0.79, so combining them can provide real diversification depending on your allocation goals.
What is the holdings overlap between FALN and IVV?
FALN and IVV share 1 common holdings with a 0.1% weight overlap. Combined, they hold 655 unique securities.
Which pays a higher dividend, FALN or IVV?
FALN yields 6.51% while IVV yields 1.10%, so FALN currently pays the higher dividend yield.
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