IVV vs MBND
iShares Core S&P 500 ETF vs State Street Nuveen Municipal 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 | MBND | Winner |
|---|---|---|---|
| Expense Ratio | 0.03% | 0.40% | |
| AUM | $865.2B | $27M | |
| Dividend Yield | 1.09% | 3.46% | |
| Holdings | 508 | 74 | |
| YTD Return | +13.43% | -1.55% | |
| 1Y Return | +22.61% | +1.81% | |
| 3Y Return (annualized) | +21.47% | +2.69% | |
| 5Y Return (annualized) | +13.26% | -0.03% | |
| Volatility (annualized) | 15.1% | 5.4% | |
| Max Drawdown | -56.5% | -13.2% | |
| Fund Family | iShares by BlackRock (US) | State Street Investment Management | |
| Category | Equity | Fixed Income | |
| Inception | May 15, 2000 | Feb 4, 2021 |
IVV vs MBND Performance
iShares Core S&P 500 ETF (IVV) is a ETF from iShares by BlackRock (US) and State Street Nuveen Municipal Bond ETF (MBND) is a ETF from State Street Investment Management. Over the past year IVV returned +22.61% while MBND returned +1.81%. Year to date, IVV is up 13.43% versus a loss of 1.55% for MBND.
Over three years, IVV compounded at +21.47% per year against +2.69% for MBND; over five years the annualized figures are +13.26% and -0.03% respectively. Across the full 6-year window we track, IVV has the edge at +7.03% annualized vs +0.20%. 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 5.4% for MBND. 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 -13.2% for MBND. 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 0.67. They move independently enough that combining them can meaningfully diversify a portfolio.
Fees and Cost Over Time
IVV charges 0.03% per year while MBND charges 0.40%. On a $10,000 position that is $3 vs $40 annually, a gap of $37 per year that compounds over a long holding period. On income, IVV currently yields 1.09% against 3.46% for MBND.
Holdings Overlap
IVV and MBND share 0 holdings out of 545 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 MBND?
IVV has an expense ratio of 0.03% while MBND charges 0.40%. IVV is the cheaper option. On a $10,000 investment, that is $37 per year of difference.
Which performed better, IVV or MBND?
Over the past year IVV returned +22.61% vs +1.81% for MBND, so IVV leads on 1-year performance. Over the longest common window we track (6 years), IVV annualized +7.03% vs +0.20% for MBND. Past performance does not guarantee future results.
Which is riskier, IVV or MBND?
IVV has been the more volatile fund at 15.1% annualized versus 5.4% for MBND. Worst drawdown: IVV -56.5% vs MBND -13.2%.
Should I hold both IVV and MBND?
IVV and MBND have a monthly-return correlation of 0.67, so combining them can provide real diversification depending on your allocation goals.
What is the holdings overlap between IVV and MBND?
IVV and MBND share 0 common holdings with a 0.0% weight overlap. Combined, they hold 545 unique securities.
Which pays a higher dividend, IVV or MBND?
IVV yields 1.09% while MBND yields 3.46%, so MBND currently pays the higher dividend yield.
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