IVV vs OOTO

Quick Verdict

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

Lower Fees: IVVHigher Returns: OOTOMore Diversified: IVV

Side-by-Side Comparison

MetricIVVOOTOWinner
Expense Ratio0.03%1.07%
AUM$865.2B$6M
Dividend Yield1.09%1.27%
Holdings50854
YTD Return+14.50%+1.71%
1Y Return+22.02%+42.54%
3Y Return (annualized)+21.80%+22.56%
5Y Return (annualized)+13.37%-
Volatility (annualized)15.1%51.9%
Max Drawdown-56.5%-66.9%
Fund FamilyiShares by BlackRock (US)Direxion Shares ETF Trust
CategoryEquityAlternative
InceptionMay 15, 2000Jun 10, 2021

IVV vs OOTO Performance

iShares Core S&P 500 ETF (IVV) is a ETF from iShares by BlackRock (US) and Direxion Daily Travel & Vacation Bull 2X (OOTO) is a ETF from Direxion Shares ETF Trust. Over the past year IVV returned +22.02% while OOTO returned +42.54%. Year to date, IVV is up 14.50% versus a gain of 1.71% for OOTO.

Over three years, IVV compounded at +21.80% per year against +22.56% for OOTO. Across the full 4-year window we track, IVV has the edge at +7.07% annualized vs -6.08%. Past performance does not guarantee future results.

Risk: Volatility and Drawdowns

OOTO has been the more volatile fund, with annualized monthly volatility of 51.9% 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 -66.9% for OOTO. 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 OOTO charges 1.07%. On a $10,000 position that is $3 vs $107 annually, a gap of $104 per year that compounds over a long holding period. On income, IVV currently yields 1.09% against 1.27% for OOTO.

Frequently Asked Questions

Which is cheaper, IVV or OOTO?

IVV has an expense ratio of 0.03% while OOTO charges 1.07%. IVV is the cheaper option. On a $10,000 investment, that is $104 per year of difference.

Which performed better, IVV or OOTO?

Over the past year IVV returned +22.02% vs +42.54% for OOTO, so OOTO leads on 1-year performance. Over the longest common window we track (4 years), IVV annualized +7.07% vs -6.08% for OOTO. Past performance does not guarantee future results.

Which is riskier, IVV or OOTO?

OOTO has been the more volatile fund at 51.9% annualized versus 15.1% for IVV. Worst drawdown: IVV -56.5% vs OOTO -66.9%.

Should I hold both IVV and OOTO?

IVV and OOTO have a monthly-return correlation of 0.76, so combining them can provide real diversification depending on your allocation goals.

Which pays a higher dividend, IVV or OOTO?

IVV yields 1.09% while OOTO yields 1.27%, so OOTO currently pays the higher dividend yield.

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