IVV vs LQTI
iShares Core S&P 500 ETF vs FT Vest Investment Grade & Target Income 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 | LQTI | Winner |
|---|---|---|---|
| Expense Ratio | 0.03% | 0.65% | |
| AUM | $907.0B | $270M | |
| Dividend Yield | 1.10% | 9.31% | |
| Holdings | 508 | 4 | |
| YTD Return | +12.71% | -0.86% | |
| 1Y Return | +21.89% | +1.59% | |
| 3Y Return (annualized) | +22.08% | - | |
| 5Y Return (annualized) | +12.96% | - | |
| Volatility (annualized) | 15.1% | 3.6% | |
| Max Drawdown | -56.5% | -3.4% | |
| Fund Family | iShares by BlackRock (US) | First Trust Portfolios (US) | |
| Category | Equity | Alternative | |
| Inception | May 15, 2000 | Feb 12, 2025 |
IVV vs LQTI Performance
iShares Core S&P 500 ETF (IVV) is a ETF from iShares by BlackRock (US) and FT Vest Investment Grade & Target Income ETF (LQTI) is a ETF from First Trust Portfolios (US). Over the past year IVV returned +21.89% while LQTI returned +1.59%. Year to date, IVV is up 12.71% versus a loss of 0.86% for LQTI.
Risk: Volatility and Drawdowns
IVV has been the more volatile fund, with annualized monthly volatility of 15.1% compared with 3.6% for LQTI. 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 -3.4% for LQTI. 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 0.42. They move independently enough that combining them can meaningfully diversify a portfolio.
Fees and Cost Over Time
IVV charges 0.03% per year while LQTI charges 0.65%. On a $10,000 position that is $3 vs $65 annually, a gap of $62 per year that compounds over a long holding period. On income, IVV currently yields 1.10% against 9.31% for LQTI.
Frequently Asked Questions
Which is cheaper, IVV or LQTI?
IVV has an expense ratio of 0.03% while LQTI charges 0.65%. IVV is the cheaper option. On a $10,000 investment, that is $62 per year of difference.
Which performed better, IVV or LQTI?
Over the past year IVV returned +21.89% vs +1.59% for LQTI, so IVV leads on 1-year performance. Over the longest common window we track (2 years), IVV annualized +7.00% vs +3.48% for LQTI. Past performance does not guarantee future results.
Which is riskier, IVV or LQTI?
IVV has been the more volatile fund at 15.1% annualized versus 3.6% for LQTI. Worst drawdown: IVV -56.5% vs LQTI -3.4%.
Should I hold both IVV and LQTI?
IVV and LQTI have a monthly-return correlation of 0.42, so combining them can provide real diversification depending on your allocation goals.
Which pays a higher dividend, IVV or LQTI?
IVV yields 1.10% while LQTI yields 9.31%, so LQTI currently pays the higher dividend yield.
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