ISTB vs IVV
iShares Core 1-5 Year USD Bond ETF vs iShares Core S&P 500 ETF
Quick Verdict
IVV has a lower expense ratio. IVV delivered stronger 1-year returns. ISTB offers more diversification with 2218 holdings.
Side-by-Side Comparison
| Metric | ISTB | IVV | Winner |
|---|---|---|---|
| Expense Ratio | 0.06% | 0.03% | |
| AUM | $5.1B | $865.2B | |
| Dividend Yield | 4.24% | 1.09% | |
| Holdings | 7,038 | 508 | |
| YTD Return | +0.57% | +13.72% | |
| 1Y Return | +2.66% | +21.64% | |
| 3Y Return (annualized) | +5.16% | +21.55% | |
| 5Y Return (annualized) | +1.96% | +13.27% | |
| Volatility (annualized) | 2.2% | 15.1% | |
| Max Drawdown | -50.1% | -56.5% | |
| Fund Family | iShares by BlackRock (US) | iShares by BlackRock (US) | |
| Category | Fixed Income | Equity | |
| Inception | Oct 18, 2012 | May 15, 2000 |
ISTB vs IVV Performance
iShares Core 1-5 Year USD Bond ETF (ISTB) 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 ISTB returned +2.66% while IVV returned +21.64%. Year to date, ISTB is up 0.57% versus a gain of 13.72% for IVV.
Over three years, ISTB compounded at +5.16% per year against +21.55% for IVV; over five years the annualized figures are +1.96% and +13.27% respectively. Across the full 14-year window we track, IVV has the edge at +7.04% annualized vs +0.93%. 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 2.2% for ISTB. 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 -50.1% for ISTB 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 0.42. They move independently enough that combining them can meaningfully diversify a portfolio.
Fees and Cost Over Time
ISTB charges 0.06% per year while IVV charges 0.03%. On a $10,000 position that is $6 vs $3 annually, a gap of $3 per year that compounds over a long holding period. On income, ISTB currently yields 4.24% against 1.09% for IVV.
Holdings Overlap
ISTB and IVV share 3 holdings out of 2720 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, ISTB or IVV?
ISTB has an expense ratio of 0.06% while IVV charges 0.03%. IVV is the cheaper option. On a $10,000 investment, that is $3 per year of difference.
Which performed better, ISTB or IVV?
Over the past year ISTB returned +2.66% vs +21.64% for IVV, so IVV leads on 1-year performance. Over the longest common window we track (14 years), ISTB annualized +0.93% vs +7.04% for IVV. Past performance does not guarantee future results.
Which is riskier, ISTB or IVV?
IVV has been the more volatile fund at 15.1% annualized versus 2.2% for ISTB. Worst drawdown: ISTB -50.1% vs IVV -56.5%.
Should I hold both ISTB and IVV?
ISTB and IVV have a monthly-return correlation of 0.42, so combining them can provide real diversification depending on your allocation goals.
What is the holdings overlap between ISTB and IVV?
ISTB and IVV share 3 common holdings with a 0.0% weight overlap. Combined, they hold 2720 unique securities.
Which pays a higher dividend, ISTB or IVV?
ISTB yields 4.24% while IVV yields 1.09%, so ISTB currently pays the higher dividend yield.
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