IVV vs NMCO
iShares Core S&P 500 ETF vs Nuveen Municipal Credit Opportunities Fund
Quick Verdict
IVV has a lower expense ratio. IVV delivered stronger 1-year returns. IVV offers more diversification with 508 holdings.
Side-by-Side Comparison
| Metric | IVV | NMCO | Winner |
|---|---|---|---|
| Expense Ratio | 0.03% | 4.50% | |
| AUM | $907.0B | - | |
| Dividend Yield | 1.10% | 7.87% | |
| Holdings | 508 | 430 | |
| YTD Return | +12.71% | +6.69% | |
| 1Y Return | +21.89% | +11.39% | |
| 3Y Return (annualized) | +22.08% | +5.18% | |
| 5Y Return (annualized) | +12.96% | -1.99% | |
| Volatility (annualized) | 15.1% | 20.2% | |
| Max Drawdown | -56.5% | -43.0% | |
| Fund Family | iShares by BlackRock (US) | Nuveen | |
| Category | Equity | Fixed Income | |
| Inception | May 15, 2000 | Sep 16, 2019 |
IVV vs NMCO Performance
iShares Core S&P 500 ETF (IVV) is a ETF from iShares by BlackRock (US) and Nuveen Municipal Credit Opportunities Fund (NMCO) is a ETF from Nuveen. Over the past year IVV returned +21.89% while NMCO returned +11.39%. Year to date, IVV is up 12.71% versus a gain of 6.69% for NMCO.
Over three years, IVV compounded at +22.08% per year against +5.18% for NMCO; over five years the annualized figures are +12.96% and -1.99% respectively. Across the full 7-year window we track, IVV has the edge at +7.00% annualized vs -0.49%. Past performance does not guarantee future results.
Risk: Volatility and Drawdowns
NMCO has been the more volatile fund, with annualized monthly volatility of 20.2% 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 -43.0% for NMCO. 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 0.59. They move independently enough that combining them can meaningfully diversify a portfolio.
Fees and Cost Over Time
IVV charges 0.03% per year while NMCO charges 4.50%. On a $10,000 position that is $3 vs $450 annually, a gap of $447 per year that compounds over a long holding period. On income, IVV currently yields 1.10% against 7.87% for NMCO.
Holdings Overlap
IVV and NMCO share 0 holdings out of 660 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 NMCO?
IVV has an expense ratio of 0.03% while NMCO charges 4.50%. IVV is the cheaper option. On a $10,000 investment, that is $447 per year of difference.
Which performed better, IVV or NMCO?
Over the past year IVV returned +21.89% vs +11.39% for NMCO, so IVV leads on 1-year performance. Over the longest common window we track (7 years), IVV annualized +7.00% vs -0.49% for NMCO. Past performance does not guarantee future results.
Which is riskier, IVV or NMCO?
NMCO has been the more volatile fund at 20.2% annualized versus 15.1% for IVV. Worst drawdown: IVV -56.5% vs NMCO -43.0%.
Should I hold both IVV and NMCO?
IVV and NMCO have a monthly-return correlation of 0.59, so combining them can provide real diversification depending on your allocation goals.
What is the holdings overlap between IVV and NMCO?
IVV and NMCO share 0 common holdings with a 0.0% weight overlap. Combined, they hold 660 unique securities.
Which pays a higher dividend, IVV or NMCO?
IVV yields 1.10% while NMCO yields 7.87%, so NMCO currently pays the higher dividend yield.
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