IVV vs MMD
iShares Core S&P 500 ETF vs NYLI MacKay DefinedTerm Muni Opportunities 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 | MMD | Winner |
|---|---|---|---|
| Expense Ratio | 0.03% | 2.33% | |
| AUM | $865.2B | $478M | |
| Dividend Yield | 1.09% | 4.59% | |
| Holdings | 508 | 90 | |
| YTD Return | +13.43% | +3.43% | |
| 1Y Return | +22.61% | +7.09% | |
| 3Y Return (annualized) | +21.47% | +1.15% | |
| 5Y Return (annualized) | +13.26% | -3.54% | |
| Volatility (annualized) | 15.1% | 11.2% | |
| Max Drawdown | -56.5% | -30.1% | |
| Fund Family | iShares by BlackRock (US) | New York Life Investments | |
| Category | Equity | Tax Preferred | |
| Inception | May 15, 2000 | Jun 27, 2012 |
IVV vs MMD Performance
iShares Core S&P 500 ETF (IVV) is a ETF from iShares by BlackRock (US) and NYLI MacKay DefinedTerm Muni Opportunities Fund (MMD) is a ETF from New York Life Investments. Over the past year IVV returned +22.61% while MMD returned +7.09%. Year to date, IVV is up 13.43% versus a gain of 3.43% for MMD.
Over three years, IVV compounded at +21.47% per year against +1.15% for MMD; over five years the annualized figures are +13.26% and -3.54% respectively. Across the full 14-year window we track, IVV has the edge at +7.03% annualized vs -0.11%. 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 11.2% for MMD. 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 -30.1% for MMD. 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 0.43. They move independently enough that combining them can meaningfully diversify a portfolio.
Fees and Cost Over Time
IVV charges 0.03% per year while MMD charges 2.33%. On a $10,000 position that is $3 vs $233 annually, a gap of $230 per year that compounds over a long holding period. On income, IVV currently yields 1.09% against 4.59% for MMD.
Holdings Overlap
IVV and MMD share 0 holdings out of 554 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 MMD?
IVV has an expense ratio of 0.03% while MMD charges 2.33%. IVV is the cheaper option. On a $10,000 investment, that is $230 per year of difference.
Which performed better, IVV or MMD?
Over the past year IVV returned +22.61% vs +7.09% for MMD, so IVV leads on 1-year performance. Over the longest common window we track (14 years), IVV annualized +7.03% vs -0.11% for MMD. Past performance does not guarantee future results.
Which is riskier, IVV or MMD?
IVV has been the more volatile fund at 15.1% annualized versus 11.2% for MMD. Worst drawdown: IVV -56.5% vs MMD -30.1%.
Should I hold both IVV and MMD?
IVV and MMD have a monthly-return correlation of 0.43, so combining them can provide real diversification depending on your allocation goals.
What is the holdings overlap between IVV and MMD?
IVV and MMD share 0 common holdings with a 0.0% weight overlap. Combined, they hold 554 unique securities.
Which pays a higher dividend, IVV or MMD?
IVV yields 1.09% while MMD yields 4.59%, so MMD currently pays the higher dividend yield.
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