FSMB vs IVV
First Trust Short Duration Managed Municipal ETF vs iShares Core S&P 500 ETF
Quick Verdict
IVV has a lower expense ratio. IVV delivered stronger 1-year returns. FSMB offers more diversification with 557 holdings.
Side-by-Side Comparison
| Metric | FSMB | IVV | Winner |
|---|---|---|---|
| Expense Ratio | 0.34% | 0.03% | |
| AUM | $632M | $907.0B | |
| Dividend Yield | 3.18% | 1.10% | |
| Holdings | 557 | 508 | |
| YTD Return | +1.26% | +12.96% | |
| 1Y Return | +2.44% | +20.70% | |
| 3Y Return (annualized) | +3.45% | +22.10% | |
| 5Y Return (annualized) | +1.38% | +13.40% | |
| Volatility (annualized) | 2.6% | 15.1% | |
| Max Drawdown | -6.3% | -56.5% | |
| Fund Family | First Trust Portfolios (US) | iShares by BlackRock (US) | |
| Category | Fixed Income | Equity | |
| Inception | Nov 1, 2018 | May 15, 2000 |
FSMB vs IVV Performance
First Trust Short Duration Managed Municipal ETF (FSMB) 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 FSMB returned +2.44% while IVV returned +20.70%. Year to date, FSMB is up 1.26% versus a gain of 12.96% for IVV.
Over three years, FSMB compounded at +3.45% per year against +22.10% for IVV; over five years the annualized figures are +1.38% and +13.40% respectively. Across the full 8-year window we track, IVV has the edge at +7.01% annualized vs +1.53%. 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 2.6% for FSMB. 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 -6.3% for FSMB 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 0.52. They move independently enough that combining them can meaningfully diversify a portfolio.
Fees and Cost Over Time
FSMB charges 0.34% per year while IVV charges 0.03%. On a $10,000 position that is $34 vs $3 annually, a gap of $31 per year that compounds over a long holding period. On income, FSMB currently yields 3.18% against 1.10% for IVV.
Holdings Overlap
FSMB and IVV share 0 holdings out of 835 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, FSMB or IVV?
FSMB has an expense ratio of 0.34% while IVV charges 0.03%. IVV is the cheaper option. On a $10,000 investment, that is $31 per year of difference.
Which performed better, FSMB or IVV?
Over the past year FSMB returned +2.44% vs +20.70% for IVV, so IVV leads on 1-year performance. Over the longest common window we track (8 years), FSMB annualized +1.53% vs +7.01% for IVV. Past performance does not guarantee future results.
Which is riskier, FSMB or IVV?
IVV has been the more volatile fund at 15.1% annualized versus 2.6% for FSMB. Worst drawdown: FSMB -6.3% vs IVV -56.5%.
Should I hold both FSMB and IVV?
FSMB and IVV have a monthly-return correlation of 0.52, so combining them can provide real diversification depending on your allocation goals.
What is the holdings overlap between FSMB and IVV?
FSMB and IVV share 0 common holdings with a 0.0% weight overlap. Combined, they hold 835 unique securities.
Which pays a higher dividend, FSMB or IVV?
FSMB yields 3.18% while IVV yields 1.10%, so FSMB currently pays the higher dividend yield.
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