FEBP vs IVV

Quick Verdict

IVV has a lower expense ratio. IVV delivered stronger 1-year returns. IVV offers more diversification with 505 holdings.

Lower Fees: IVVHigher Returns: IVVMore Diversified: IVV

Side-by-Side Comparison

MetricFEBPIVVWinner
Expense Ratio0.50%0.03%
AUM$25M$865.2B
Dividend Yield0.00%1.09%
Holdings7508
YTD Return+8.79%+13.80%
1Y Return+15.69%+23.01%
3Y Return (annualized)-+21.77%
5Y Return (annualized)-+13.39%
Volatility (annualized)6.5%15.1%
Max Drawdown-12.1%-56.5%
Fund FamilyPGIM InvestmentsiShares by BlackRock (US)
CategoryAlternativeEquity
InceptionJan 31, 2024May 15, 2000

FEBP vs IVV Performance

PGIM S&P 500 Buffer 12 ETF - February (FEBP) is a ETF from PGIM Investments and iShares Core S&P 500 ETF (IVV) is a ETF from iShares by BlackRock (US). Over the past year FEBP returned +15.69% while IVV returned +23.01%. Year to date, FEBP is up 8.79% versus a gain of 13.80% for IVV.

Risk: Volatility and Drawdowns

IVV has been the more volatile fund, with annualized monthly volatility of 15.1% compared with 6.5% for FEBP. 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 -12.1% for FEBP 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 0.95. They move almost in lockstep, so holding both mostly duplicates the same exposure.

Fees and Cost Over Time

FEBP charges 0.50% per year while IVV charges 0.03%. On a $10,000 position that is $50 vs $3 annually, a gap of $47 per year that compounds over a long holding period. On income, FEBP currently yields 0.00% against 1.09% for IVV.

Frequently Asked Questions

Which is cheaper, FEBP or IVV?

FEBP has an expense ratio of 0.50% while IVV charges 0.03%. IVV is the cheaper option. On a $10,000 investment, that is $47 per year of difference.

Which performed better, FEBP or IVV?

Over the past year FEBP returned +15.69% vs +23.01% for IVV, so IVV leads on 1-year performance. Over the longest common window we track (3 years), FEBP annualized +13.51% vs +7.04% for IVV. Past performance does not guarantee future results.

Which is riskier, FEBP or IVV?

IVV has been the more volatile fund at 15.1% annualized versus 6.5% for FEBP. Worst drawdown: FEBP -12.1% vs IVV -56.5%.

Should I hold both FEBP and IVV?

FEBP and IVV have a monthly-return correlation of 0.95, so they move almost identically. Holding both adds little diversification - most investors pick one, usually on fees or the specific index tracked.

Which pays a higher dividend, FEBP or IVV?

FEBP yields 0.00% while IVV yields 1.09%, so IVV currently pays the higher dividend yield.

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