IVV vs IYG
iShares Core S&P 500 ETF vs iShares US Financial Services 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 | IVV | IYG | Winner |
|---|---|---|---|
| Expense Ratio | 0.03% | 0.38% | |
| AUM | $907.0B | $2.2B | |
| Dividend Yield | 1.10% | 1.03% | |
| Holdings | 508 | 104 | |
| YTD Return | +12.71% | +4.75% | |
| 1Y Return | +21.89% | +12.35% | |
| 3Y Return (annualized) | +22.08% | +24.24% | |
| 5Y Return (annualized) | +12.96% | +10.57% | |
| Volatility (annualized) | 15.1% | 21.6% | |
| Max Drawdown | -56.5% | -82.9% | |
| Fund Family | iShares by BlackRock (US) | iShares by BlackRock (US) | |
| Category | Equity | Equity | |
| Inception | May 15, 2000 | Jun 12, 2000 |
IVV vs IYG Performance
iShares Core S&P 500 ETF (IVV) is a ETF from iShares by BlackRock (US) and iShares US Financial Services ETF (IYG) is a ETF from iShares by BlackRock (US). Over the past year IVV returned +21.89% while IYG returned +12.35%. Year to date, IVV is up 12.71% versus a gain of 4.75% for IYG.
Over three years, IVV compounded at +22.08% per year against +24.24% for IYG; over five years the annualized figures are +12.96% and +10.57% respectively. Across the full 26-year window we track, IVV has the edge at +7.00% annualized vs +5.31%. Past performance does not guarantee future results.
Risk: Volatility and Drawdowns
IYG has been the more volatile fund, with annualized monthly volatility of 21.6% 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 -56.5% for IVV and -82.9% for IYG. 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 0.82. They usually move together, but the gap leaves some room for diversification.
Fees and Cost Over Time
IVV charges 0.03% per year while IYG charges 0.38%. On a $10,000 position that is $3 vs $38 annually, a gap of $35 per year that compounds over a long holding period. On income, IVV currently yields 1.10% against 1.03% for IYG.
Holdings Overlap
IVV and IYG share 46 holdings out of 560 unique holdings combined, representing a 8.9% weight overlap.
Moderate overlap means holding both could provide meaningful diversification benefits.
Frequently Asked Questions
Which is cheaper, IVV or IYG?
IVV has an expense ratio of 0.03% while IYG charges 0.38%. IVV is the cheaper option. On a $10,000 investment, that is $35 per year of difference.
Which performed better, IVV or IYG?
Over the past year IVV returned +21.89% vs +12.35% for IYG, so IVV leads on 1-year performance. Over the longest common window we track (26 years), IVV annualized +7.00% vs +5.31% for IYG. Past performance does not guarantee future results.
Which is riskier, IVV or IYG?
IYG has been the more volatile fund at 21.6% annualized versus 15.1% for IVV. Worst drawdown: IVV -56.5% vs IYG -82.9%.
Should I hold both IVV and IYG?
IVV and IYG have a monthly-return correlation of 0.82, so combining them can provide real diversification depending on your allocation goals.
What is the holdings overlap between IVV and IYG?
IVV and IYG share 46 common holdings with a 8.9% weight overlap. Combined, they hold 560 unique securities.
Which pays a higher dividend, IVV or IYG?
IVV yields 1.10% while IYG yields 1.03%, so IVV currently pays the higher dividend yield.
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