IVV vs MSFU

Quick Verdict

IVV has a lower expense ratio. IVV delivered stronger 1-year returns. IVV offers more diversification with 505 holdings.

Lower Fees: IVVHigher Returns: IVVMore Diversified: IVV

Side-by-Side Comparison

MetricIVVMSFUWinner
Expense Ratio0.03%0.98%
AUM$865.2B$773M
Dividend Yield1.09%13.70%
Holdings5089
YTD Return+13.43%-0.82%
1Y Return+22.61%-22.62%
3Y Return (annualized)+21.47%+12.76%
5Y Return (annualized)+13.26%-
Volatility (annualized)15.1%51.7%
Max Drawdown-56.5%-62.4%
Fund FamilyiShares by BlackRock (US)Direxion Shares ETF Trust
CategoryEquityAlternative
InceptionMay 15, 2000Sep 7, 2022

IVV vs MSFU Performance

iShares Core S&P 500 ETF (IVV) is a ETF from iShares by BlackRock (US) and Direxion Daily MSFT Bull 2X ETF (MSFU) is a ETF from Direxion Shares ETF Trust. Over the past year IVV returned +22.61% while MSFU returned -22.62%. Year to date, IVV is up 13.43% versus a loss of 0.82% for MSFU.

Over three years, IVV compounded at +21.47% per year against +12.76% for MSFU. Across the full 4-year window we track, MSFU has the edge at +17.10% annualized vs +7.03%. Past performance does not guarantee future results.

Risk: Volatility and Drawdowns

MSFU has been the more volatile fund, with annualized monthly volatility of 51.7% compared with 15.1% for IVV. 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 -62.4% for MSFU. 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 0.50. They move independently enough that combining them can meaningfully diversify a portfolio.

Fees and Cost Over Time

IVV charges 0.03% per year while MSFU charges 0.98%. On a $10,000 position that is $3 vs $98 annually, a gap of $95 per year that compounds over a long holding period. On income, IVV currently yields 1.09% against 13.70% for MSFU.

Holdings Overlap

4.6%overlap

IVV and MSFU share 1 holdings out of 509 unique holdings combined, representing a 4.6% weight overlap.

Moderate overlap means holding both could provide meaningful diversification benefits.

Top Shared Holdings

StockWeight in IVVWeight in MSFUDifference
MSFT4.57%16.39%11.82%

Frequently Asked Questions

Which is cheaper, IVV or MSFU?

IVV has an expense ratio of 0.03% while MSFU charges 0.98%. IVV is the cheaper option. On a $10,000 investment, that is $95 per year of difference.

Which performed better, IVV or MSFU?

Over the past year IVV returned +22.61% vs -22.62% for MSFU, so IVV leads on 1-year performance. Over the longest common window we track (4 years), IVV annualized +7.03% vs +17.10% for MSFU. Past performance does not guarantee future results.

Which is riskier, IVV or MSFU?

MSFU has been the more volatile fund at 51.7% annualized versus 15.1% for IVV. Worst drawdown: IVV -56.5% vs MSFU -62.4%.

Should I hold both IVV and MSFU?

IVV and MSFU have a monthly-return correlation of 0.50, so combining them can provide real diversification depending on your allocation goals.

What is the holdings overlap between IVV and MSFU?

IVV and MSFU share 1 common holdings with a 4.6% weight overlap. Combined, they hold 509 unique securities.

Which pays a higher dividend, IVV or MSFU?

IVV yields 1.09% while MSFU yields 13.70%, so MSFU currently pays the higher dividend yield.

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