IGI vs IVV
Western Asset Investment Grade Defined Opportunity Trust Inc. 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 | IGI | IVV | Winner |
|---|---|---|---|
| Expense Ratio | 0.85% | 0.03% | |
| AUM | $103M | $907.0B | |
| Dividend Yield | 5.01% | 1.10% | |
| Holdings | 415 | 508 | |
| YTD Return | -0.38% | +12.28% | |
| 1Y Return | +1.53% | +20.94% | |
| 3Y Return (annualized) | +4.98% | +21.81% | |
| 5Y Return (annualized) | -1.66% | +13.05% | |
| Volatility (annualized) | 11.2% | 15.1% | |
| Max Drawdown | -34.0% | -56.5% | |
| Fund Family | Franklin Templeton Investments (US) | iShares by BlackRock (US) | |
| Category | Fixed Income | Equity | |
| Inception | Jun 26, 2009 | May 15, 2000 |
IGI vs IVV Performance
Western Asset Investment Grade Defined Opportunity Trust Inc. (IGI) is a ETF from Franklin Templeton Investments (US) and iShares Core S&P 500 ETF (IVV) is a ETF from iShares by BlackRock (US). Over the past year IGI returned +1.53% while IVV returned +20.94%. Year to date, IGI is down 0.38% versus a gain of 12.28% for IVV.
Over three years, IGI compounded at +4.98% per year against +21.81% for IVV; over five years the annualized figures are -1.66% and +13.05% respectively. Across the full 17-year window we track, IVV has the edge at +6.98% annualized vs +0.19%. 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 11.2% for IGI. 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 -34.0% for IGI 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 0.40. They move independently enough that combining them can meaningfully diversify a portfolio.
Fees and Cost Over Time
IGI charges 0.85% per year while IVV charges 0.03%. On a $10,000 position that is $85 vs $3 annually, a gap of $82 per year that compounds over a long holding period. On income, IGI currently yields 5.01% against 1.10% for IVV.
Holdings Overlap
IGI and IVV share 1 holdings out of 789 unique holdings combined, representing a 0.3% weight overlap.
Moderate overlap means holding both could provide meaningful diversification benefits.
Top Shared Holdings
| Stock | Weight in IGI | Weight in IVV | Difference |
|---|---|---|---|
| C | 0.32% | 0.35% | 0.03% |
Frequently Asked Questions
Which is cheaper, IGI or IVV?
IGI has an expense ratio of 0.85% while IVV charges 0.03%. IVV is the cheaper option. On a $10,000 investment, that is $82 per year of difference.
Which performed better, IGI or IVV?
Over the past year IGI returned +1.53% vs +20.94% for IVV, so IVV leads on 1-year performance. Over the longest common window we track (17 years), IGI annualized +0.19% vs +6.98% for IVV. Past performance does not guarantee future results.
Which is riskier, IGI or IVV?
IVV has been the more volatile fund at 15.1% annualized versus 11.2% for IGI. Worst drawdown: IGI -34.0% vs IVV -56.5%.
Should I hold both IGI and IVV?
IGI and IVV have a monthly-return correlation of 0.40, so combining them can provide real diversification depending on your allocation goals.
What is the holdings overlap between IGI and IVV?
IGI and IVV share 1 common holdings with a 0.3% weight overlap. Combined, they hold 789 unique securities.
Which pays a higher dividend, IGI or IVV?
IGI yields 5.01% while IVV yields 1.10%, so IGI currently pays the higher dividend yield.
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