IVV vs LFAI

Quick Verdict

IVV has a lower expense ratio. IVV delivered stronger 1-year returns. IVV offers more diversification with 505 holdings.

Lower Fees: IVVHigher Returns: IVVMore Diversified: IVV

Side-by-Side Comparison

MetricIVVLFAIWinner
Expense Ratio0.03%0.25%
AUM$865.2B$4M
Dividend Yield1.09%13.53%
Holdings50823
YTD Return+14.50%-5.50%
1Y Return+22.02%-3.44%
3Y Return (annualized)+21.80%-
5Y Return (annualized)+13.37%-
Volatility (annualized)15.1%6.8%
Max Drawdown-56.5%-8.6%
Fund FamilyiShares by BlackRock (US)Stone Ridge Asset Management
CategoryEquityFixed Income
InceptionMay 15, 2000Jan 8, 2024

IVV vs LFAI Performance

iShares Core S&P 500 ETF (IVV) is a ETF from iShares by BlackRock (US) and LifeX 2050 Longevity Income ETF (LFAI) is a ETF from Stone Ridge Asset Management. Over the past year IVV returned +22.02% while LFAI returned -3.44%. Year to date, IVV is up 14.50% versus a loss of 5.50% for LFAI.

Risk: Volatility and Drawdowns

IVV has been the more volatile fund, with annualized monthly volatility of 15.1% compared with 6.8% for LFAI. 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 -8.6% for LFAI. 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 0.19. They move independently enough that combining them can meaningfully diversify a portfolio.

Fees and Cost Over Time

IVV charges 0.03% per year while LFAI charges 0.25%. On a $10,000 position that is $3 vs $25 annually, a gap of $22 per year that compounds over a long holding period. On income, IVV currently yields 1.09% against 13.53% for LFAI.

Holdings Overlap

0.0%overlap

IVV and LFAI share 0 holdings out of 523 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, IVV or LFAI?

IVV has an expense ratio of 0.03% while LFAI charges 0.25%. IVV is the cheaper option. On a $10,000 investment, that is $22 per year of difference.

Which performed better, IVV or LFAI?

Over the past year IVV returned +22.02% vs -3.44% for LFAI, so IVV leads on 1-year performance. Over the longest common window we track (2 years), IVV annualized +7.07% vs -3.43% for LFAI. Past performance does not guarantee future results.

Which is riskier, IVV or LFAI?

IVV has been the more volatile fund at 15.1% annualized versus 6.8% for LFAI. Worst drawdown: IVV -56.5% vs LFAI -8.6%.

Should I hold both IVV and LFAI?

IVV and LFAI have a monthly-return correlation of 0.19, so combining them can provide real diversification depending on your allocation goals.

What is the holdings overlap between IVV and LFAI?

IVV and LFAI share 0 common holdings with a 0.0% weight overlap. Combined, they hold 523 unique securities.

Which pays a higher dividend, IVV or LFAI?

IVV yields 1.09% while LFAI yields 13.53%, so LFAI currently pays the higher dividend yield.

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