IVV vs MDIV
iShares Core S&P 500 ETF vs First Trust Multi-Asset Diversified Income Index Fund
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 | MDIV | Winner |
|---|---|---|---|
| Expense Ratio | 0.03% | 0.71% | |
| AUM | $865.2B | $428M | |
| Dividend Yield | 1.09% | 6.13% | |
| Holdings | 508 | 125 | |
| YTD Return | +13.80% | +10.64% | |
| 1Y Return | +23.01% | +12.01% | |
| 3Y Return (annualized) | +21.77% | +10.38% | |
| 5Y Return (annualized) | +13.39% | +6.79% | |
| Volatility (annualized) | 15.1% | 13.6% | |
| Max Drawdown | -56.5% | -57.0% | |
| Fund Family | iShares by BlackRock (US) | First Trust Portfolios (US) | |
| Category | Equity | Allocation/Balanced | |
| Inception | May 15, 2000 | Aug 13, 2012 |
IVV vs MDIV Performance
iShares Core S&P 500 ETF (IVV) is a ETF from iShares by BlackRock (US) and First Trust Multi-Asset Diversified Income Index Fund (MDIV) is a ETF from First Trust Portfolios (US). Over the past year IVV returned +23.01% while MDIV returned +12.01%. Year to date, IVV is up 13.80% versus a gain of 10.64% for MDIV.
Over three years, IVV compounded at +21.77% per year against +10.38% for MDIV; over five years the annualized figures are +13.39% and +6.79% respectively. Across the full 14-year window we track, IVV has the edge at +7.04% annualized vs +1.13%. 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 13.6% for MDIV. 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 -57.0% for MDIV. 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 0.76. They usually move together, but the gap leaves some room for diversification.
Fees and Cost Over Time
IVV charges 0.03% per year while MDIV charges 0.71%. On a $10,000 position that is $3 vs $71 annually, a gap of $68 per year that compounds over a long holding period. On income, IVV currently yields 1.09% against 6.13% for MDIV.
Holdings Overlap
IVV and MDIV share 29 holdings out of 593 unique holdings combined, representing a 2.4% weight overlap.
Moderate overlap means holding both could provide meaningful diversification benefits.
Frequently Asked Questions
Which is cheaper, IVV or MDIV?
IVV has an expense ratio of 0.03% while MDIV charges 0.71%. IVV is the cheaper option. On a $10,000 investment, that is $68 per year of difference.
Which performed better, IVV or MDIV?
Over the past year IVV returned +23.01% vs +12.01% for MDIV, so IVV leads on 1-year performance. Over the longest common window we track (14 years), IVV annualized +7.04% vs +1.13% for MDIV. Past performance does not guarantee future results.
Which is riskier, IVV or MDIV?
IVV has been the more volatile fund at 15.1% annualized versus 13.6% for MDIV. Worst drawdown: IVV -56.5% vs MDIV -57.0%.
Should I hold both IVV and MDIV?
IVV and MDIV have a monthly-return correlation of 0.76, so combining them can provide real diversification depending on your allocation goals.
What is the holdings overlap between IVV and MDIV?
IVV and MDIV share 29 common holdings with a 2.4% weight overlap. Combined, they hold 593 unique securities.
Which pays a higher dividend, IVV or MDIV?
IVV yields 1.09% while MDIV yields 6.13%, so MDIV currently pays the higher dividend yield.
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