IVV vs PAI
iShares Core S&P 500 ETF vs Western Asset Investment Grade Income Fund Inc.
Which is better, IVV or PAI?
Large Cap Blend against Long Term Mid Quality.
IVV has a lower expense ratio. IVV led over 1Y, 3Y, 5Y and the full window.
MarketXLS is not an investment adviser. This comparison is generated automatically from market data and is for information only. A Best mark means the better reading on that one measure, not a recommendation to buy.
Side-by-Side Comparison
| Metric | IVV | PAI |
|---|---|---|
| Expense Ratio | 0.03%Best | 0.73% |
| AUM | $876.4B | $122M |
| Dividend Yield | 1.06% | 4.90% |
| Holdings | 508 | 476 |
| YTD Return | +11.51%Best | -3.78% |
| 1Y Return | +15.96%Best | -4.87% |
| 3Y Return (annualized) | +21.01%Best | +6.03% |
| 5Y Return (annualized) | +12.66%Best | -2.63% |
| Volatility (annualized) | 15.1% | 13.1%Best |
| Max Drawdown | -56.5% | -45.9%Best |
| $10,000 over 5 years | $18,149Best | $8,752 |
| Fund Family | iShares by BlackRock (US) | Franklin Templeton Investments (US) |
| Category | Equity | Fixed Income |
| Style | Large Cap Blend | Long Term Mid Quality |
| Inception | May 15, 2000 | Mar 22, 1973 |
Not shown on this pair: Top 10 Weight.
Volatility and max drawdown are measured over the window both funds cover: May 19, 2000 to Sep 15, 2026 (26.3 years).
IVV vs PAI growth
Month-end closes. Both lines start at 0% in the first month shown, so the gap between them is the difference in growth across that window. The full view covers the 26.3 years both funds cover.
IVV vs PAI Performance
iShares Core S&P 500 ETF (IVV) is an ETF from iShares by BlackRock (US) and Western Asset Investment Grade Income Fund Inc. (PAI) is an ETF from Franklin Templeton Investments (US). Over the past year IVV returned +15.96% while PAI returned -4.87%. Year to date, IVV is up 11.51% versus a loss of 3.78% for PAI.
Over three years, IVV compounded at +21.01% per year against +6.03% for PAI; over five years the annualized figures are +12.66% and -2.63% respectively. Across the full 26-year window we track, IVV has the edge at +6.93% annualized vs +0.76%.
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 13.1% for PAI. 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 -45.9% for PAI. Drawdown depth is what each fund did in the worst stretch of the window measured above.
The two funds' monthly returns correlate at 0.37. They move together some of the time, and apart the rest.
Fees and Cost Over Time
IVV charges 0.03% per year while PAI charges 0.73%. On a $10,000 position that is $3 vs $73 annually, a gap of $70 per year that compounds over a long holding period. On income, IVV currently yields 1.06% against 4.90% for PAI.
Holdings Overlap
At least 0.3% of IVV's money is in holdings PAI also owns.
Stated as a floor: for PAI, our book for it covers 1.2% of that fund, so a holding it does not list is one we cannot count as shared. The real figure is this or higher.
We cannot see either book well enough to say how much of this pair is duplicated.
1 positions in common, counted across the 490 positions we hold weights for in IVV and 7 in PAI, against full books of 508 and 476.
Top Shared Holdings
| Stock | Weight in IVV | Weight in PAI | Difference |
|---|---|---|---|
| CCitigroup Inc. | 0.34% | 0.34% | 0.00% |
You are not choosing between two funds in isolation.
Whichever of IVV and PAI you pick has to sit alongside everything else you own. Add the rest and see what the combination actually holds.
Free for up to 10 holdings. No account needed.
Frequently Asked Questions
Which is cheaper, IVV or PAI?
IVV has an expense ratio of 0.03% while PAI charges 0.73%. IVV is the cheaper option, by $70 a year on a $10,000 investment.
Which performed better, IVV or PAI?
Over the past year IVV returned +15.96% vs -4.87% for PAI, so IVV leads on 1-year performance. Over the longest common window we track (26 years), IVV annualized +6.93% vs +0.76% for PAI. Past performance does not guarantee future results. This is information, not a recommendation.
Which is riskier, IVV or PAI?
IVV has been the more volatile fund at 15.1% annualized versus 13.1% for PAI. Worst drawdown: IVV -56.5% vs PAI -45.9%.
Should I hold both IVV and PAI?
IVV and PAI have a monthly-return correlation of 0.37, so their returns are far enough apart for the mix to behave differently from either one alone. This is information, not a recommendation.
Which pays a higher dividend, IVV or PAI?
IVV yields 1.06% while PAI yields 4.90%, so PAI currently pays the higher dividend yield.
Is PAI better than IVV?
IVV has a lower expense ratio. IVV led over 1Y, 3Y, 5Y and the full window. Which one suits a particular account depends on what it is for. This is information, not a recommendation.