IVV vs IYT
iShares Core S&P 500 ETF vs iShares US Transportation ETF
Quick Verdict
IVV has a lower expense ratio. IYT delivered stronger 1-year returns. IVV offers more diversification with 508 holdings.
Side-by-Side Comparison
| Metric | IVV | IYT | Winner |
|---|---|---|---|
| Expense Ratio | 0.03% | 0.38% | |
| AUM | $907.0B | $2.3B | |
| Dividend Yield | 1.10% | 0.92% | |
| Holdings | 508 | 47 | |
| YTD Return | +12.28% | +14.95% | |
| 1Y Return | +20.94% | +23.35% | |
| 3Y Return (annualized) | +21.81% | +12.81% | |
| 5Y Return (annualized) | +13.05% | +7.68% | |
| Volatility (annualized) | 15.1% | 20.1% | |
| Max Drawdown | -56.5% | -60.7% | |
| Fund Family | iShares by BlackRock (US) | iShares by BlackRock (US) | |
| Category | Equity | Equity | |
| Inception | May 15, 2000 | Oct 6, 2003 |
IVV vs IYT Performance
iShares Core S&P 500 ETF (IVV) is a ETF from iShares by BlackRock (US) and iShares US Transportation ETF (IYT) is a ETF from iShares by BlackRock (US). Over the past year IVV returned +20.94% while IYT returned +23.35%. Year to date, IVV is up 12.28% versus a gain of 14.95% for IYT.
Over three years, IVV compounded at +21.81% per year against +12.81% for IYT; over five years the annualized figures are +13.05% and +7.68% respectively. Across the full 23-year window we track, IYT has the edge at +9.02% annualized vs +6.98%. Past performance does not guarantee future results.
Risk: Volatility and Drawdowns
IYT has been the more volatile fund, with annualized monthly volatility of 20.1% 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 -60.7% for IYT. 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 0.83. They usually move together, but the gap leaves some room for diversification.
Fees and Cost Over Time
IVV charges 0.03% per year while IYT 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 0.92% for IYT.
Holdings Overlap
IVV and IYT share 15 holdings out of 534 unique holdings combined, representing a 1.5% weight overlap.
Moderate overlap means holding both could provide meaningful diversification benefits.
Frequently Asked Questions
Which is cheaper, IVV or IYT?
IVV has an expense ratio of 0.03% while IYT 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 IYT?
Over the past year IVV returned +20.94% vs +23.35% for IYT, so IYT leads on 1-year performance. Over the longest common window we track (23 years), IVV annualized +6.98% vs +9.02% for IYT. Past performance does not guarantee future results.
Which is riskier, IVV or IYT?
IYT has been the more volatile fund at 20.1% annualized versus 15.1% for IVV. Worst drawdown: IVV -56.5% vs IYT -60.7%.
Should I hold both IVV and IYT?
IVV and IYT have a monthly-return correlation of 0.83, so combining them can provide real diversification depending on your allocation goals.
What is the holdings overlap between IVV and IYT?
IVV and IYT share 15 common holdings with a 1.5% weight overlap. Combined, they hold 534 unique securities.
Which pays a higher dividend, IVV or IYT?
IVV yields 1.10% while IYT yields 0.92%, so IVV currently pays the higher dividend yield.
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