IVV vs LQDW
iShares Core S&P 500 ETF vs iShares Investment Grade Corporate Bond BuyWrite Strategy ETF
Quick Verdict
IVV has a lower expense ratio. IVV delivered stronger 1-year returns. LQDW offers more diversification with 3,135 holdings.
Side-by-Side Comparison
| Metric | IVV | LQDW | Winner |
|---|---|---|---|
| Expense Ratio | 0.03% | 0.34% | |
| AUM | $907.0B | $319M | |
| Dividend Yield | 1.10% | 12.32% | |
| Holdings | 508 | 3,135 | |
| YTD Return | +14.29% | -5.05% | |
| 1Y Return | +21.79% | -3.53% | |
| 3Y Return (annualized) | +22.19% | +1.49% | |
| 5Y Return (annualized) | +13.28% | - | |
| Volatility (annualized) | 15.1% | 5.9% | |
| Max Drawdown | -56.5% | -9.2% | |
| Fund Family | iShares by BlackRock (US) | iShares by BlackRock (US) | |
| Category | Equity | Fixed Income | |
| Inception | May 15, 2000 | Aug 18, 2022 |
IVV vs LQDW Performance
iShares Core S&P 500 ETF (IVV) is a ETF from iShares by BlackRock (US) and iShares Investment Grade Corporate Bond BuyWrite Strategy ETF (LQDW) is a ETF from iShares by BlackRock (US). Over the past year IVV returned +21.79% while LQDW returned -3.53%. Year to date, IVV is up 14.29% versus a loss of 5.05% for LQDW.
Over three years, IVV compounded at +22.19% per year against +1.49% for LQDW. Across the full 4-year window we track, IVV has the edge at +7.06% annualized vs +0.49%. 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 5.9% for LQDW. 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 -9.2% for LQDW. 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 0.63. They move independently enough that combining them can meaningfully diversify a portfolio.
Fees and Cost Over Time
IVV charges 0.03% per year while LQDW charges 0.34%. On a $10,000 position that is $3 vs $34 annually, a gap of $31 per year that compounds over a long holding period. On income, IVV currently yields 1.10% against 12.32% for LQDW.
Holdings Overlap
IVV and LQDW share 0 holdings out of 524 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 LQDW?
IVV has an expense ratio of 0.03% while LQDW charges 0.34%. IVV is the cheaper option. On a $10,000 investment, that is $31 per year of difference.
Which performed better, IVV or LQDW?
Over the past year IVV returned +21.79% vs -3.53% for LQDW, so IVV leads on 1-year performance. Over the longest common window we track (4 years), IVV annualized +7.06% vs +0.49% for LQDW. Past performance does not guarantee future results.
Which is riskier, IVV or LQDW?
IVV has been the more volatile fund at 15.1% annualized versus 5.9% for LQDW. Worst drawdown: IVV -56.5% vs LQDW -9.2%.
Should I hold both IVV and LQDW?
IVV and LQDW have a monthly-return correlation of 0.63, so combining them can provide real diversification depending on your allocation goals.
What is the holdings overlap between IVV and LQDW?
IVV and LQDW share 0 common holdings with a 0.0% weight overlap. Combined, they hold 524 unique securities.
Which pays a higher dividend, IVV or LQDW?
IVV yields 1.10% while LQDW yields 12.32%, so LQDW currently pays the higher dividend yield.
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