IVV vs MBBB
iShares Core S&P 500 ETF vs VanEck Moody's Analytics BBB Corporate Bond ETF
Quick Verdict
IVV has a lower expense ratio. IVV delivered stronger 1-year returns. IVV offers more diversification with 505 holdings.
Side-by-Side Comparison
| Metric | IVV | MBBB | Winner |
|---|---|---|---|
| Expense Ratio | 0.03% | 0.25% | |
| AUM | $865.2B | $5M | |
| Dividend Yield | 1.09% | 5.06% | |
| Holdings | 508 | 214 | |
| YTD Return | +13.80% | -3.00% | |
| 1Y Return | +23.70% | -1.35% | |
| 3Y Return (annualized) | +21.49% | +4.56% | |
| 5Y Return (annualized) | +13.43% | -0.01% | |
| Volatility (annualized) | 15.1% | 7.4% | |
| Max Drawdown | -56.5% | -21.7% | |
| Fund Family | iShares by BlackRock (US) | VanEck | |
| Category | Equity | Fixed Income | |
| Inception | May 15, 2000 | Dec 1, 2020 |
IVV vs MBBB Performance
iShares Core S&P 500 ETF (IVV) is a ETF from iShares by BlackRock (US) and VanEck Moody's Analytics BBB Corporate Bond ETF (MBBB) is a ETF from VanEck. Over the past year IVV returned +23.70% while MBBB returned -1.35%. Year to date, IVV is up 13.80% versus a loss of 3.00% for MBBB.
Over three years, IVV compounded at +21.49% per year against +4.56% for MBBB; over five years the annualized figures are +13.43% and -0.01% respectively. Across the full 6-year window we track, IVV has the edge at +7.05% annualized vs +0.40%. 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 7.4% for MBBB. 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 -21.7% for MBBB. 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 0.68. They move independently enough that combining them can meaningfully diversify a portfolio.
Fees and Cost Over Time
IVV charges 0.03% per year while MBBB 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 5.06% for MBBB.
Holdings Overlap
IVV and MBBB share 10 holdings out of 686 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 MBBB?
IVV has an expense ratio of 0.03% while MBBB 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 MBBB?
Over the past year IVV returned +23.70% vs -1.35% for MBBB, so IVV leads on 1-year performance. Over the longest common window we track (6 years), IVV annualized +7.05% vs +0.40% for MBBB. Past performance does not guarantee future results.
Which is riskier, IVV or MBBB?
IVV has been the more volatile fund at 15.1% annualized versus 7.4% for MBBB. Worst drawdown: IVV -56.5% vs MBBB -21.7%.
Should I hold both IVV and MBBB?
IVV and MBBB have a monthly-return correlation of 0.68, so combining them can provide real diversification depending on your allocation goals.
What is the holdings overlap between IVV and MBBB?
IVV and MBBB share 10 common holdings with a 1.5% weight overlap. Combined, they hold 686 unique securities.
Which pays a higher dividend, IVV or MBBB?
IVV yields 1.09% while MBBB yields 5.06%, so MBBB currently pays the higher dividend yield.
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