FEDM vs IVV
FlexShares ESG & Climate Developed Markets ex-US Core Index Fund vs iShares Core S&P 500 ETF
Quick Verdict
IVV has a lower expense ratio. FEDM delivered stronger 1-year returns. IVV offers more diversification with 505 holdings.
Side-by-Side Comparison
| Metric | FEDM | IVV | Winner |
|---|---|---|---|
| Expense Ratio | 0.12% | 0.03% | |
| AUM | $78M | $865.2B | |
| Dividend Yield | 2.98% | 1.09% | |
| Holdings | 261 | 508 | |
| YTD Return | +12.94% | +13.72% | |
| 1Y Return | +22.44% | +21.64% | |
| 3Y Return (annualized) | +16.71% | +21.55% | |
| 5Y Return (annualized) | +8.80% | +13.27% | |
| Volatility (annualized) | 15.7% | 15.1% | |
| Max Drawdown | -29.4% | -56.5% | |
| Fund Family | Flexshares Trust | iShares by BlackRock (US) | |
| Category | Equity | Equity | |
| Inception | Sep 20, 2021 | May 15, 2000 |
FEDM vs IVV Performance
FlexShares ESG & Climate Developed Markets ex-US Core Index Fund (FEDM) is a ETF from Flexshares Trust and iShares Core S&P 500 ETF (IVV) is a ETF from iShares by BlackRock (US). Over the past year FEDM returned +22.44% while IVV returned +21.64%. Year to date, FEDM is up 12.94% versus a gain of 13.72% for IVV.
Over three years, FEDM compounded at +16.71% per year against +21.55% for IVV; over five years the annualized figures are +8.80% and +13.27% respectively. Across the full 5-year window we track, FEDM has the edge at +8.80% annualized vs +7.04%. Past performance does not guarantee future results.
Risk: Volatility and Drawdowns
FEDM has been the more volatile fund, with annualized monthly volatility of 15.7% compared with 15.1% for IVV. 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 -29.4% for FEDM 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
FEDM charges 0.12% per year while IVV charges 0.03%. On a $10,000 position that is $12 vs $3 annually, a gap of $9 per year that compounds over a long holding period. On income, FEDM currently yields 2.98% against 1.09% for IVV.
Holdings Overlap
FEDM and IVV share 1 holdings out of 726 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 FEDM | Weight in IVV | Difference |
|---|---|---|---|
| ROP | 0.33% | 0.05% | 0.28% |
Frequently Asked Questions
Which is cheaper, FEDM or IVV?
FEDM has an expense ratio of 0.12% while IVV charges 0.03%. IVV is the cheaper option. On a $10,000 investment, that is $9 per year of difference.
Which performed better, FEDM or IVV?
Over the past year FEDM returned +22.44% vs +21.64% for IVV, so FEDM leads on 1-year performance. Over the longest common window we track (5 years), FEDM annualized +8.80% vs +7.04% for IVV. Past performance does not guarantee future results.
Which is riskier, FEDM or IVV?
FEDM has been the more volatile fund at 15.7% annualized versus 15.1% for IVV. Worst drawdown: FEDM -29.4% vs IVV -56.5%.
Should I hold both FEDM and IVV?
FEDM 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 FEDM and IVV?
FEDM and IVV share 1 common holdings with a 0.1% weight overlap. Combined, they hold 726 unique securities.
Which pays a higher dividend, FEDM or IVV?
FEDM yields 2.98% while IVV yields 1.09%, so FEDM currently pays the higher dividend yield.
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