IVV vs KBWB
iShares Core S&P 500 ETF vs Invesco KBW Bank ETF
Quick Verdict
IVV has a lower expense ratio. KBWB delivered stronger 1-year returns. IVV offers more diversification with 508 holdings.
Side-by-Side Comparison
| Metric | IVV | KBWB | Winner |
|---|---|---|---|
| Expense Ratio | 0.03% | 0.35% | |
| AUM | $907.0B | $7.0B | |
| Dividend Yield | 1.10% | 1.94% | |
| Holdings | 508 | 30 | |
| YTD Return | +12.28% | +11.80% | |
| 1Y Return | +20.94% | +30.86% | |
| 3Y Return (annualized) | +21.81% | +34.90% | |
| 5Y Return (annualized) | +13.05% | +11.11% | |
| Volatility (annualized) | 15.1% | 23.9% | |
| Max Drawdown | -56.5% | -52.0% | |
| Fund Family | iShares by BlackRock (US) | Invesco (US) | |
| Category | Equity | Equity | |
| Inception | May 15, 2000 | Nov 1, 2011 |
IVV vs KBWB Performance
iShares Core S&P 500 ETF (IVV) is a ETF from iShares by BlackRock (US) and Invesco KBW Bank ETF (KBWB) is a ETF from Invesco (US). Over the past year IVV returned +20.94% while KBWB returned +30.86%. Year to date, IVV is up 12.28% versus a gain of 11.80% for KBWB.
Over three years, IVV compounded at +21.81% per year against +34.90% for KBWB; over five years the annualized figures are +13.05% and +11.11% respectively. Across the full 15-year window we track, KBWB has the edge at +12.24% annualized vs +6.98%. Past performance does not guarantee future results.
Risk: Volatility and Drawdowns
KBWB has been the more volatile fund, with annualized monthly volatility of 23.9% 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 -52.0% for KBWB. 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 0.71. They usually move together, but the gap leaves some room for diversification.
Fees and Cost Over Time
IVV charges 0.03% per year while KBWB charges 0.35%. On a $10,000 position that is $3 vs $35 annually, a gap of $32 per year that compounds over a long holding period. On income, IVV currently yields 1.10% against 1.94% for KBWB.
Holdings Overlap
IVV and KBWB share 18 holdings out of 512 unique holdings combined, representing a 4.3% weight overlap.
Moderate overlap means holding both could provide meaningful diversification benefits.
Frequently Asked Questions
Which is cheaper, IVV or KBWB?
IVV has an expense ratio of 0.03% while KBWB charges 0.35%. IVV is the cheaper option. On a $10,000 investment, that is $32 per year of difference.
Which performed better, IVV or KBWB?
Over the past year IVV returned +20.94% vs +30.86% for KBWB, so KBWB leads on 1-year performance. Over the longest common window we track (15 years), IVV annualized +6.98% vs +12.24% for KBWB. Past performance does not guarantee future results.
Which is riskier, IVV or KBWB?
KBWB has been the more volatile fund at 23.9% annualized versus 15.1% for IVV. Worst drawdown: IVV -56.5% vs KBWB -52.0%.
Should I hold both IVV and KBWB?
IVV and KBWB have a monthly-return correlation of 0.71, so combining them can provide real diversification depending on your allocation goals.
What is the holdings overlap between IVV and KBWB?
IVV and KBWB share 18 common holdings with a 4.3% weight overlap. Combined, they hold 512 unique securities.
Which pays a higher dividend, IVV or KBWB?
IVV yields 1.10% while KBWB yields 1.94%, so KBWB currently pays the higher dividend yield.
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