HFRO vs IVV
Highland Opportunities and Income Fund vs iShares Core S&P 500 ETF
Quick Verdict
IVV has a lower expense ratio. HFRO delivered stronger 1-year returns. IVV offers more diversification with 505 holdings.
Side-by-Side Comparison
| Metric | HFRO | IVV | Winner |
|---|---|---|---|
| Expense Ratio | 1.18% | 0.03% | |
| AUM | $650M | $865.2B | |
| Dividend Yield | 3.91% | 1.09% | |
| Holdings | 64 | 508 | |
| YTD Return | +24.59% | +14.50% | |
| 1Y Return | +28.14% | +22.02% | |
| 3Y Return (annualized) | +3.18% | +21.80% | |
| 5Y Return (annualized) | +0.50% | +13.37% | |
| Volatility (annualized) | 25.0% | 15.1% | |
| Max Drawdown | -60.5% | -56.5% | |
| Fund Family | NexPoint | iShares by BlackRock (US) | |
| Category | Fixed Income | Equity | |
| Inception | Jan 13, 2000 | May 15, 2000 |
HFRO vs IVV Performance
Highland Opportunities and Income Fund (HFRO) is a ETF from NexPoint and iShares Core S&P 500 ETF (IVV) is a ETF from iShares by BlackRock (US). Over the past year HFRO returned +28.14% while IVV returned +22.02%. Year to date, HFRO is up 24.59% versus a gain of 14.50% for IVV.
Over three years, HFRO compounded at +3.18% per year against +21.80% for IVV; over five years the annualized figures are +0.50% and +13.37% respectively. Across the full 9-year window we track, IVV has the edge at +7.07% annualized vs -3.41%. Past performance does not guarantee future results.
Risk: Volatility and Drawdowns
HFRO has been the more volatile fund, with annualized monthly volatility of 25.0% 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 -60.5% for HFRO 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
HFRO charges 1.18% per year while IVV charges 0.03%. On a $10,000 position that is $118 vs $3 annually, a gap of $115 per year that compounds over a long holding period. On income, HFRO currently yields 3.91% against 1.09% for IVV.
Holdings Overlap
HFRO and IVV share 0 holdings out of 519 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, HFRO or IVV?
HFRO has an expense ratio of 1.18% while IVV charges 0.03%. IVV is the cheaper option. On a $10,000 investment, that is $115 per year of difference.
Which performed better, HFRO or IVV?
Over the past year HFRO returned +28.14% vs +22.02% for IVV, so HFRO leads on 1-year performance. Over the longest common window we track (9 years), HFRO annualized -3.41% vs +7.07% for IVV. Past performance does not guarantee future results.
Which is riskier, HFRO or IVV?
HFRO has been the more volatile fund at 25.0% annualized versus 15.1% for IVV. Worst drawdown: HFRO -60.5% vs IVV -56.5%.
Should I hold both HFRO and IVV?
HFRO 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 HFRO and IVV?
HFRO and IVV share 0 common holdings with a 0.0% weight overlap. Combined, they hold 519 unique securities.
Which pays a higher dividend, HFRO or IVV?
HFRO yields 3.91% while IVV yields 1.09%, so HFRO currently pays the higher dividend yield.
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