HYD vs IVV
VanEck High Yield Muni ETF vs iShares Core S&P 500 ETF
Quick Verdict
IVV has a lower expense ratio. IVV delivered stronger 1-year returns. HYD offers more diversification with 1,887 holdings.
Side-by-Side Comparison
| Metric | HYD | IVV | Winner |
|---|---|---|---|
| Expense Ratio | 0.32% | 0.03% | |
| AUM | $4.5B | $907.0B | |
| Dividend Yield | 4.36% | 1.10% | |
| Holdings | 1,887 | 508 | |
| YTD Return | -2.02% | +12.96% | |
| 1Y Return | +3.22% | +20.70% | |
| 3Y Return (annualized) | +3.41% | +22.10% | |
| 5Y Return (annualized) | -1.21% | +13.40% | |
| Volatility (annualized) | 63.2% | 15.1% | |
| Max Drawdown | -56.8% | -56.5% | |
| Fund Family | VanEck | iShares by BlackRock (US) | |
| Category | Tax Preferred | Equity | |
| Inception | Feb 4, 2009 | May 15, 2000 |
HYD vs IVV Performance
VanEck High Yield Muni ETF (HYD) is a ETF from VanEck and iShares Core S&P 500 ETF (IVV) is a ETF from iShares by BlackRock (US). Over the past year HYD returned +3.22% while IVV returned +20.70%. Year to date, HYD is down 2.02% versus a gain of 12.96% for IVV.
Over three years, HYD compounded at +3.41% per year against +22.10% for IVV; over five years the annualized figures are -1.21% and +13.40% respectively. Across the full 18-year window we track, IVV has the edge at +7.01% annualized vs +4.71%. Past performance does not guarantee future results.
Risk: Volatility and Drawdowns
HYD has been the more volatile fund, with annualized monthly volatility of 63.2% 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 -56.8% for HYD 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 0.08. They move independently enough that combining them can meaningfully diversify a portfolio.
Fees and Cost Over Time
HYD charges 0.32% per year while IVV charges 0.03%. On a $10,000 position that is $32 vs $3 annually, a gap of $29 per year that compounds over a long holding period. On income, HYD currently yields 4.36% against 1.10% for IVV.
Holdings Overlap
HYD and IVV share 0 holdings out of 517 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, HYD or IVV?
HYD has an expense ratio of 0.32% while IVV charges 0.03%. IVV is the cheaper option. On a $10,000 investment, that is $29 per year of difference.
Which performed better, HYD or IVV?
Over the past year HYD returned +3.22% vs +20.70% for IVV, so IVV leads on 1-year performance. Over the longest common window we track (18 years), HYD annualized +4.71% vs +7.01% for IVV. Past performance does not guarantee future results.
Which is riskier, HYD or IVV?
HYD has been the more volatile fund at 63.2% annualized versus 15.1% for IVV. Worst drawdown: HYD -56.8% vs IVV -56.5%.
Should I hold both HYD and IVV?
HYD and IVV have a monthly-return correlation of 0.08, so combining them can provide real diversification depending on your allocation goals.
What is the holdings overlap between HYD and IVV?
HYD and IVV share 0 common holdings with a 0.0% weight overlap. Combined, they hold 517 unique securities.
Which pays a higher dividend, HYD or IVV?
HYD yields 4.36% while IVV yields 1.10%, so HYD currently pays the higher dividend yield.
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