IBHG vs IVV

IBHG vs IVV

Which is better, IBHG or IVV?

High Yield Bond against Large Cap Blend.

IVV has a lower expense ratio. IVV led over 1Y, 3Y, 5Y and the full window. IBHG is less concentrated, with 23.4% of the fund in its ten largest positions against 37.9%.

Lower Fees: IVVHigher Returns: IVVLess Concentrated: IBHG

MarketXLS is not an investment adviser. This comparison is generated automatically from market data and is for information only. A Best mark means the better reading on that one measure, not a recommendation to buy.

Side-by-Side Comparison

MetricIBHGIVV
Expense Ratio0.35%0.03%Best
AUM$525M$876.4B
Dividend Yield6.00%1.06%
Holdings91508
YTD Return-2.00%+12.51%Best
1Y Return-1.15%+17.57%Best
3Y Return (annualized)+5.51%+21.27%Best
5Y Return (annualized)+2.66%+12.95%Best
Volatility (annualized)6.7%Best15.7%
Max Drawdown-13.8%Best-24.5%
$10,000 over 5 years$11,403$18,384Best
Top 10 Weight23.4%Best37.9%
Fund FamilyiShares by BlackRock (US)iShares by BlackRock (US)
CategoryFixed IncomeEquity
StyleHigh Yield BondLarge Cap Blend
InceptionJul 7, 2021May 15, 2000

Volatility and max drawdown are measured over the window both funds cover: Jul 9, 2021 to Sep 11, 2026 (5.2 years).

IBHG vs IVV growth

Month-end closes. Both lines start at 0% in the first month shown, so the gap between them is the difference in growth across that window. The full view covers the 5.2 years both funds cover.

IBHG vs IVV Performance

iShares iBonds 2027 Term High Yield and Income ETF (IBHG) is an ETF from iShares by BlackRock (US) and iShares Core S&P 500 ETF (IVV) is an ETF from iShares by BlackRock (US). Over the past year IBHG returned -1.15% while IVV returned +17.57%. Year to date, IBHG is down 2.00% versus a gain of 12.51% for IVV.

Over three years, IBHG compounded at +5.51% per year against +21.27% for IVV; over five years the annualized figures are +2.66% and +12.95% respectively.

Past performance does not guarantee future results.

Risk: Volatility and Drawdowns

IVV has been the more volatile fund, with annualized monthly volatility of 15.7% compared with 6.7% for IBHG. 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 -13.8% for IBHG and -24.5% for IVV. Drawdown depth is what each fund did in the worst stretch of the window measured above.

The two funds' monthly returns correlate at 0.78. They usually move together, but the gap leaves some room for diversification.

Fees and Cost Over Time

IBHG charges 0.35% per year while IVV charges 0.03%. On a $10,000 position that is $35 vs $3 annually, a gap of $32 per year that compounds over a long holding period. On income, IBHG currently yields 6.00% against 1.06% for IVV.

Holdings Overlap

IBHG already in IVV3.1%
IVV already in IBHG0.2%

3.1% of IBHG's money is in holdings IVV also owns. 0.2% of IVV's money is in holdings IBHG also owns.

IBHG and IVV share little of their money.

3 positions in common, counted across the 348 positions we hold weights for in IBHG and 505 in IVV, against full books of 91 and 508.

What only one of them owns

Measured across the 348 and 505 positions we hold weights for.

IVV holds 485 positions IBHG does not, 99.1% of the fund.

Largest: NVDA 7.98%, AAPL 6.86%, MSFT 5.44%, AMZN 4.01%, GOOGL 3.19%

Top Shared Holdings

StockWeight in IBHGWeight in IVVDifference
XTSLABlackrock Cash Funds: Treasury, Sl Agency Shares3.04%0.18%2.86%
CMSCms Energy Corp.0.01%0.03%0.02%
TXTTextron Inc.0.01%0.02%0.01%

You are not choosing between two funds in isolation.

Whichever of IBHG and IVV you pick has to sit alongside everything else you own. Add the rest and see what the combination actually holds.

IBHGIVV

Free for up to 10 holdings. No account needed.

Frequently Asked Questions

Which is cheaper, IBHG or IVV?

IBHG has an expense ratio of 0.35% while IVV charges 0.03%. IVV is the cheaper option, by $32 a year on a $10,000 investment.

Which performed better, IBHG or IVV?

Over the past year IBHG returned -1.15% vs +17.57% for IVV, so IVV leads on 1-year performance. Past performance does not guarantee future results. This is information, not a recommendation.

Which is riskier, IBHG or IVV?

IVV has been the more volatile fund at 15.7% annualized versus 6.7% for IBHG. Worst drawdown: IBHG -13.8% vs IVV -24.5%.

Should I hold both IBHG and IVV?

IBHG and IVV have a monthly-return correlation of 0.78, so their returns are far enough apart for the mix to behave differently from either one alone. This is information, not a recommendation.

What is the holdings overlap between IBHG and IVV?

3.1% of IBHG's money is in holdings IVV also owns. 0.2% of IVV's is in holdings IBHG also owns. They hold 3 positions in common, counted across the 348 positions we hold weights for in IBHG and 505 in IVV.

Which pays a higher dividend, IBHG or IVV?

IBHG yields 6.00% while IVV yields 1.06%, so IBHG currently pays the higher dividend yield.

Is IVV better than IBHG?

IVV has a lower expense ratio. IVV led over 1Y, 3Y, 5Y and the full window. IBHG is less concentrated, with 23.4% of the fund in its ten largest positions against 37.9%. Which one suits a particular account depends on what it is for. This is information, not a recommendation.