GOVZ vs IVV

GOVZ vs IVV
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Quick Verdict

IVV has a lower expense ratio. GOVZ delivered stronger 1-year returns. IVV offers more diversification with 508 holdings.

Lower Fees: IVVHigher Returns: GOVZMore Diversified: IVV

Side-by-Side Comparison

MetricGOVZIVVWinner
Expense Ratio0.10%0.03%
AUM$301M$907.0B
Dividend Yield5.14%1.10%
Holdings22508
YTD Return+261.11%+12.71%
1Y Return+268.08%+21.89%
3Y Return (annualized)+48.24%+22.08%
5Y Return (annualized)+11.98%+12.96%
Volatility (annualized)126.3%15.1%
Max Drawdown-59.6%-56.5%
Fund FamilyiShares by BlackRock (US)iShares by BlackRock (US)
CategoryFixed IncomeEquity
InceptionSep 22, 2020May 15, 2000

GOVZ vs IVV Performance

iShares 25+ Year Treasury STRIPS Bond ETF (GOVZ) is a ETF from iShares by BlackRock (US) and iShares Core S&P 500 ETF (IVV) is a ETF from iShares by BlackRock (US). Over the past year GOVZ returned +268.08% while IVV returned +21.89%. Year to date, GOVZ is up 261.11% versus a gain of 12.71% for IVV.

Over three years, GOVZ compounded at +48.24% per year against +22.08% for IVV; over five years the annualized figures are +11.98% and +12.96% respectively. Across the full 6-year window we track, GOVZ has the edge at +8.02% annualized vs +7.00%. Past performance does not guarantee future results.

Risk: Volatility and Drawdowns

GOVZ has been the more volatile fund, with annualized monthly volatility of 126.3% 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 -59.6% for GOVZ 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 0.19. They move independently enough that combining them can meaningfully diversify a portfolio.

Fees and Cost Over Time

GOVZ charges 0.10% per year while IVV charges 0.03%. On a $10,000 position that is $10 vs $3 annually, a gap of $7 per year that compounds over a long holding period. On income, GOVZ currently yields 5.14% against 1.10% for IVV.

Holdings Overlap

0.1%overlap

GOVZ and IVV share 1 holdings out of 522 unique holdings combined, representing a 0.1% weight overlap.

Moderate overlap means holding both could provide meaningful diversification benefits.

Top Shared Holdings

StockWeight in GOVZWeight in IVVDifference
XTSLA0.45%0.15%0.30%

Frequently Asked Questions

Which is cheaper, GOVZ or IVV?

GOVZ has an expense ratio of 0.10% while IVV charges 0.03%. IVV is the cheaper option. On a $10,000 investment, that is $7 per year of difference.

Which performed better, GOVZ or IVV?

Over the past year GOVZ returned +268.08% vs +21.89% for IVV, so GOVZ leads on 1-year performance. Over the longest common window we track (6 years), GOVZ annualized +8.02% vs +7.00% for IVV. Past performance does not guarantee future results.

Which is riskier, GOVZ or IVV?

GOVZ has been the more volatile fund at 126.3% annualized versus 15.1% for IVV. Worst drawdown: GOVZ -59.6% vs IVV -56.5%.

Should I hold both GOVZ and IVV?

GOVZ and IVV have a monthly-return correlation of 0.19, so combining them can provide real diversification depending on your allocation goals.

What is the holdings overlap between GOVZ and IVV?

GOVZ and IVV share 1 common holdings with a 0.1% weight overlap. Combined, they hold 522 unique securities.

Which pays a higher dividend, GOVZ or IVV?

GOVZ yields 5.14% while IVV yields 1.10%, so GOVZ currently pays the higher dividend yield.

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