IVV vs PABU
iShares Core S&P 500 ETF vs iShares Paris-Aligned Climate Optimized MSCI USA ETF
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 | PABU | Winner |
|---|---|---|---|
| Expense Ratio | 0.03% | 0.10% | |
| AUM | $907.0B | $2.6B | |
| Dividend Yield | 1.10% | 0.94% | |
| Holdings | 508 | 97 | |
| YTD Return | +12.28% | +8.01% | |
| 1Y Return | +20.94% | +14.75% | |
| 3Y Return (annualized) | +21.81% | +18.57% | |
| 5Y Return (annualized) | +13.05% | - | |
| Volatility (annualized) | 15.1% | 16.6% | |
| Max Drawdown | -56.5% | -20.8% | |
| Fund Family | iShares by BlackRock (US) | iShares by BlackRock (US) | |
| Category | Equity | Equity | |
| Inception | May 15, 2000 | Feb 8, 2022 |
IVV vs PABU Performance
iShares Core S&P 500 ETF (IVV) is a ETF from iShares by BlackRock (US) and iShares Paris-Aligned Climate Optimized MSCI USA ETF (PABU) is a ETF from iShares by BlackRock (US). Over the past year IVV returned +20.94% while PABU returned +14.75%. Year to date, IVV is up 12.28% versus a gain of 8.01% for PABU.
Over three years, IVV compounded at +21.81% per year against +18.57% for PABU. Across the full 4-year window we track, PABU has the edge at +12.54% annualized vs +6.98%. Past performance does not guarantee future results.
Risk: Volatility and Drawdowns
PABU has been the more volatile fund, with annualized monthly volatility of 16.6% 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 -20.8% for PABU. 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 0.98. They move almost in lockstep, so holding both mostly duplicates the same exposure.
Fees and Cost Over Time
IVV charges 0.03% per year while PABU charges 0.10%. On a $10,000 position that is $3 vs $10 annually, a gap of $7 per year that compounds over a long holding period. On income, IVV currently yields 1.10% against 0.94% for PABU.
Holdings Overlap
IVV and PABU share 80 holdings out of 518 unique holdings combined, representing a 44.4% weight overlap.
Moderate overlap means holding both could provide meaningful diversification benefits.
Frequently Asked Questions
Which is cheaper, IVV or PABU?
IVV has an expense ratio of 0.03% while PABU charges 0.10%. IVV is the cheaper option. On a $10,000 investment, that is $7 per year of difference.
Which performed better, IVV or PABU?
Over the past year IVV returned +20.94% vs +14.75% for PABU, so IVV leads on 1-year performance. Over the longest common window we track (4 years), IVV annualized +6.98% vs +12.54% for PABU. Past performance does not guarantee future results.
Which is riskier, IVV or PABU?
PABU has been the more volatile fund at 16.6% annualized versus 15.1% for IVV. Worst drawdown: IVV -56.5% vs PABU -20.8%.
Should I hold both IVV and PABU?
IVV and PABU have a monthly-return correlation of 0.98, so they move almost identically. Holding both adds little diversification - most investors pick one, usually on fees or the specific index tracked.
What is the holdings overlap between IVV and PABU?
IVV and PABU share 80 common holdings with a 44.4% weight overlap. Combined, they hold 518 unique securities.
Which pays a higher dividend, IVV or PABU?
IVV yields 1.10% while PABU yields 0.94%, so IVV currently pays the higher dividend yield.
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