FCVT vs IVV

FCVT vs IVV

Which is better, FCVT or IVV?

Convertibles against Large Cap Blend.

IVV has a lower expense ratio. FCVT led over 1Y, IVV over 3Y, 5Y and the full window.

Lower Fees: IVVHigher Returns: split

MarketXLS is not an investment adviser. This comparison is generated automatically from market data and is for information only. A Best mark means the better reading on that one measure, not a recommendation to buy.

Side-by-Side Comparison

MetricFCVTIVV
Expense Ratio0.95%0.03%Best
AUM$99M$886.7B
Dividend Yield1.14%1.10%
Holdings251508
YTD Return+13.93%Best+13.39%
1Y Return+23.86%Best+20.08%
3Y Return (annualized)+17.32%+21.29%Best
5Y Return (annualized)+4.95%+12.88%Best
Volatility (annualized)14.3%Best15.1%
Max Drawdown-32.3%Best-33.9%
$10,000 over 5 years$12,732$18,327Best
Fund FamilyFirst Trust Portfolios (US)iShares by BlackRock (US)
CategoryConvertibleEquity
StyleConvertiblesLarge Cap Blend
InceptionNov 3, 2015May 15, 2000

Not shown on this pair: Top 10 Weight.

Volatility and max drawdown are measured over the window both funds cover: Nov 4, 2015 to Sep 4, 2026 (10.8 years).

FCVT vs IVV growth

Month-end closes. Both lines start at 0% in the first month shown, so the gap between them is the difference in growth across that window. The full view covers the 10.8 years both funds cover.

FCVT vs IVV Performance

First Trust SSI Strategic Convertible Securities ETF (FCVT) is an ETF from First Trust Portfolios (US) and iShares Core S&P 500 ETF (IVV) is an ETF from iShares by BlackRock (US). Over the past year FCVT returned +23.86% while IVV returned +20.08%. Year to date, FCVT is up 13.93% versus a gain of 13.39% for IVV.

Over three years, FCVT compounded at +17.32% per year against +21.29% for IVV; over five years the annualized figures are +4.95% and +12.88% respectively. Across the full 11-year window we track, IVV has the edge at +13.52% annualized vs +9.37%.

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 14.3% for FCVT. 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 -32.3% for FCVT and -33.9% for IVV. Drawdown depth is what each fund did in the worst stretch of the window measured above.

The two funds' monthly returns correlate at 0.83. They usually move together, but the gap leaves some room for diversification.

Fees and Cost Over Time

FCVT charges 0.95% per year while IVV charges 0.03%. On a $10,000 position that is $95 vs $3 annually, a gap of $92 per year that compounds over a long holding period. On income, FCVT currently yields 1.14% against 1.10% for IVV.

Holdings Overlap

IVV already in FCVT0.7%

At least 0.7% of IVV's money is in holdings FCVT also owns.

Stated as a floor: for FCVT, our book for it covers 45.2% of that fund, so a holding it does not list is one we cannot count as shared. The real figure is this or higher.

We cannot see either book well enough to say how much of this pair is duplicated.

4 positions in common, counted across the 49 positions we hold weights for in FCVT and 505 in IVV, against full books of 251 and 508.

Top Shared Holdings

StockWeight in FCVTWeight in IVVDifference
WDCWestern Digital Corp Company Guar 11/28 32.93%0.27%2.66%
LITELumentum Holdings Inc1.55%0.10%1.45%
ARESAres Management Corp Preferred Stock 10/27 6.750.69%0.04%0.65%
STXSeagate Technology Holdings Plc0.45%0.28%0.17%

You are not choosing between two funds in isolation.

Whichever of FCVT and IVV you pick has to sit alongside everything else you own. Add the rest and see what the combination actually holds.

FCVTIVV

Free for up to 10 holdings. No account needed.

Frequently Asked Questions

Which is cheaper, FCVT or IVV?

FCVT has an expense ratio of 0.95% while IVV charges 0.03%. IVV is the cheaper option, by $92 a year on a $10,000 investment.

Which performed better, FCVT or IVV?

Over the past year FCVT returned +23.86% vs +20.08% for IVV, so FCVT leads on 1-year performance. Over the longest common window we track (11 years), FCVT annualized +9.37% vs +13.52% for IVV. Past performance does not guarantee future results. This is information, not a recommendation.

Which is riskier, FCVT or IVV?

IVV has been the more volatile fund at 15.1% annualized versus 14.3% for FCVT. Worst drawdown: FCVT -32.3% vs IVV -33.9%.

Should I hold both FCVT and IVV?

FCVT and IVV have a monthly-return correlation of 0.83, so their returns are far enough apart for the mix to behave differently from either one alone. This is information, not a recommendation.

Which pays a higher dividend, FCVT or IVV?

FCVT yields 1.14% while IVV yields 1.10%, so FCVT currently pays the higher dividend yield.

Is IVV better than FCVT?

IVV has a lower expense ratio. FCVT led over 1Y, IVV over 3Y, 5Y and the full window. Which one suits a particular account depends on what it is for. This is information, not a recommendation.