FFA vs IVV
First Trust Enhanced Equity Income Fund 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 | FFA | IVV | Winner |
|---|---|---|---|
| Expense Ratio | 1.13% | 0.03% | |
| AUM | $521M | $907.0B | |
| Dividend Yield | 6.19% | 1.10% | |
| Holdings | 86 | 508 | |
| YTD Return | +11.66% | +14.29% | |
| 1Y Return | +19.75% | +21.79% | |
| 3Y Return (annualized) | +17.89% | +22.19% | |
| 5Y Return (annualized) | +9.76% | +13.28% | |
| Volatility (annualized) | 16.6% | 15.1% | |
| Max Drawdown | -67.6% | -56.5% | |
| Fund Family | First Trust Portfolios (US) | iShares by BlackRock (US) | |
| Category | Alternative | Equity | |
| Inception | Aug 26, 2004 | May 15, 2000 |
FFA vs IVV Performance
First Trust Enhanced Equity Income Fund (FFA) is a ETF from First Trust Portfolios (US) and iShares Core S&P 500 ETF (IVV) is a ETF from iShares by BlackRock (US). Over the past year FFA returned +19.75% while IVV returned +21.79%. Year to date, FFA is up 11.66% versus a gain of 14.29% for IVV.
Over three years, FFA compounded at +17.89% per year against +22.19% for IVV; over five years the annualized figures are +9.76% and +13.28% respectively. Across the full 22-year window we track, IVV has the edge at +7.06% annualized vs +2.55%. Past performance does not guarantee future results.
Risk: Volatility and Drawdowns
FFA has been the more volatile fund, with annualized monthly volatility of 16.6% 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 -67.6% for FFA 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 0.89. They usually move together, but the gap leaves some room for diversification.
Fees and Cost Over Time
FFA charges 1.13% per year while IVV charges 0.03%. On a $10,000 position that is $113 vs $3 annually, a gap of $110 per year that compounds over a long holding period. On income, FFA currently yields 6.19% against 1.10% for IVV.
Holdings Overlap
FFA and IVV share 53 holdings out of 513 unique holdings combined, representing a 44.5% weight overlap.
Moderate overlap means holding both could provide meaningful diversification benefits.
Frequently Asked Questions
Which is cheaper, FFA or IVV?
FFA has an expense ratio of 1.13% while IVV charges 0.03%. IVV is the cheaper option. On a $10,000 investment, that is $110 per year of difference.
Which performed better, FFA or IVV?
Over the past year FFA returned +19.75% vs +21.79% for IVV, so IVV leads on 1-year performance. Over the longest common window we track (22 years), FFA annualized +2.55% vs +7.06% for IVV. Past performance does not guarantee future results.
Which is riskier, FFA or IVV?
FFA has been the more volatile fund at 16.6% annualized versus 15.1% for IVV. Worst drawdown: FFA -67.6% vs IVV -56.5%.
Should I hold both FFA and IVV?
FFA and IVV have a monthly-return correlation of 0.89, so combining them can provide real diversification depending on your allocation goals.
What is the holdings overlap between FFA and IVV?
FFA and IVV share 53 common holdings with a 44.5% weight overlap. Combined, they hold 513 unique securities.
Which pays a higher dividend, FFA or IVV?
FFA yields 6.19% while IVV yields 1.10%, so FFA currently pays the higher dividend yield.
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