IEI vs IVV
iShares 3-7 Year Treasury Bond ETF vs iShares Core S&P 500 ETF
Quick Verdict
IVV has a lower expense ratio. IVV delivered stronger 1-year returns. IVV offers more diversification with 508 holdings.
Side-by-Side Comparison
| Metric | IEI | IVV | Winner |
|---|---|---|---|
| Expense Ratio | 0.15% | 0.03% | |
| AUM | $17.7B | $907.0B | |
| Dividend Yield | 3.67% | 1.10% | |
| Holdings | 85 | 508 | |
| YTD Return | -0.33% | +12.71% | |
| 1Y Return | +1.67% | +21.89% | |
| 3Y Return (annualized) | +4.32% | +22.08% | |
| 5Y Return (annualized) | +0.21% | +12.96% | |
| Volatility (annualized) | 3.9% | 15.1% | |
| Max Drawdown | -15.0% | -56.5% | |
| Fund Family | iShares by BlackRock (US) | iShares by BlackRock (US) | |
| Category | Fixed Income | Equity | |
| Inception | Jan 5, 2007 | May 15, 2000 |
IEI vs IVV Performance
iShares 3-7 Year Treasury Bond ETF (IEI) 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 IEI returned +1.67% while IVV returned +21.89%. Year to date, IEI is down 0.33% versus a gain of 12.71% for IVV.
Over three years, IEI compounded at +4.32% per year against +22.08% for IVV; over five years the annualized figures are +0.21% and +12.96% respectively. Across the full 20-year window we track, IVV has the edge at +7.00% annualized vs +1.48%. 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 3.9% for IEI. 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 -15.0% for IEI 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
IEI charges 0.15% per year while IVV charges 0.03%. On a $10,000 position that is $15 vs $3 annually, a gap of $12 per year that compounds over a long holding period. On income, IEI currently yields 3.67% against 1.10% for IVV.
Holdings Overlap
IEI and IVV share 1 holdings out of 566 unique holdings combined, representing a 0.1% weight overlap.
Moderate overlap means holding both could provide meaningful diversification benefits.
Top Shared Holdings
| Stock | Weight in IEI | Weight in IVV | Difference |
|---|---|---|---|
| XTSLA | 0.78% | 0.15% | 0.63% |
Frequently Asked Questions
Which is cheaper, IEI or IVV?
IEI has an expense ratio of 0.15% while IVV charges 0.03%. IVV is the cheaper option. On a $10,000 investment, that is $12 per year of difference.
Which performed better, IEI or IVV?
Over the past year IEI returned +1.67% vs +21.89% for IVV, so IVV leads on 1-year performance. Over the longest common window we track (20 years), IEI annualized +1.48% vs +7.00% for IVV. Past performance does not guarantee future results.
Which is riskier, IEI or IVV?
IVV has been the more volatile fund at 15.1% annualized versus 3.9% for IEI. Worst drawdown: IEI -15.0% vs IVV -56.5%.
Should I hold both IEI and IVV?
IEI 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 IEI and IVV?
IEI and IVV share 1 common holdings with a 0.1% weight overlap. Combined, they hold 566 unique securities.
Which pays a higher dividend, IEI or IVV?
IEI yields 3.67% while IVV yields 1.10%, so IEI currently pays the higher dividend yield.
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