FMB vs IVV
First Trust Managed Municipal ETF vs iShares Core S&P 500 ETF
Quick Verdict
IVV has a lower expense ratio. IVV delivered stronger 1-year returns. FMB offers more diversification with 1,279 holdings.
Side-by-Side Comparison
| Metric | FMB | IVV | Winner |
|---|---|---|---|
| Expense Ratio | 0.39% | 0.03% | |
| AUM | $2.1B | $907.0B | |
| Dividend Yield | 3.62% | 1.10% | |
| Holdings | 1,279 | 508 | |
| YTD Return | +0.50% | +12.96% | |
| 1Y Return | +4.56% | +20.70% | |
| 3Y Return (annualized) | +3.51% | +22.10% | |
| 5Y Return (annualized) | +0.31% | +13.40% | |
| Volatility (annualized) | 4.9% | 15.1% | |
| Max Drawdown | -14.2% | -56.5% | |
| Fund Family | First Trust Portfolios (US) | iShares by BlackRock (US) | |
| Category | Tax Preferred | Equity | |
| Inception | May 13, 2014 | May 15, 2000 |
FMB vs IVV Performance
First Trust Managed Municipal ETF (FMB) 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 FMB returned +4.56% while IVV returned +20.70%. Year to date, FMB is up 0.50% versus a gain of 12.96% for IVV.
Over three years, FMB compounded at +3.51% per year against +22.10% for IVV; over five years the annualized figures are +0.31% and +13.40% respectively. Across the full 12-year window we track, IVV has the edge at +7.01% annualized vs +1.32%. 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 4.9% for FMB. 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 -14.2% for FMB 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 0.41. They move independently enough that combining them can meaningfully diversify a portfolio.
Fees and Cost Over Time
FMB charges 0.39% per year while IVV charges 0.03%. On a $10,000 position that is $39 vs $3 annually, a gap of $36 per year that compounds over a long holding period. On income, FMB currently yields 3.62% against 1.10% for IVV.
Holdings Overlap
FMB and IVV share 0 holdings out of 1141 unique holdings combined, representing a 0.0% weight overlap.
Moderate overlap means holding both could provide meaningful diversification benefits.
Frequently Asked Questions
Which is cheaper, FMB or IVV?
FMB has an expense ratio of 0.39% while IVV charges 0.03%. IVV is the cheaper option. On a $10,000 investment, that is $36 per year of difference.
Which performed better, FMB or IVV?
Over the past year FMB returned +4.56% vs +20.70% for IVV, so IVV leads on 1-year performance. Over the longest common window we track (12 years), FMB annualized +1.32% vs +7.01% for IVV. Past performance does not guarantee future results.
Which is riskier, FMB or IVV?
IVV has been the more volatile fund at 15.1% annualized versus 4.9% for FMB. Worst drawdown: FMB -14.2% vs IVV -56.5%.
Should I hold both FMB and IVV?
FMB and IVV have a monthly-return correlation of 0.41, so combining them can provide real diversification depending on your allocation goals.
What is the holdings overlap between FMB and IVV?
FMB and IVV share 0 common holdings with a 0.0% weight overlap. Combined, they hold 1141 unique securities.
Which pays a higher dividend, FMB or IVV?
FMB yields 3.62% while IVV yields 1.10%, so FMB currently pays the higher dividend yield.
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