IVV vs PALC
iShares Core S&P 500 ETF vs Pacer Lunt Large Cap Multi-Factor Alternator ETF
Quick Verdict
IVV has a lower expense ratio. IVV delivered stronger 1-year returns. IVV offers more diversification with 505 holdings.
Side-by-Side Comparison
| Metric | IVV | PALC | Winner |
|---|---|---|---|
| Expense Ratio | 0.03% | 0.60% | |
| AUM | $865.2B | $211M | |
| Dividend Yield | 1.09% | 1.02% | |
| Holdings | 508 | 181 | |
| YTD Return | +13.72% | +10.91% | |
| 1Y Return | +21.64% | +15.08% | |
| 3Y Return (annualized) | +21.55% | +15.70% | |
| 5Y Return (annualized) | +13.27% | +8.89% | |
| Volatility (annualized) | 15.1% | 17.3% | |
| Max Drawdown | -56.5% | -24.4% | |
| Fund Family | iShares by BlackRock (US) | Pacer ETFs | |
| Category | Equity | Equity | |
| Inception | May 15, 2000 | Jun 24, 2020 |
IVV vs PALC Performance
iShares Core S&P 500 ETF (IVV) is a ETF from iShares by BlackRock (US) and Pacer Lunt Large Cap Multi-Factor Alternator ETF (PALC) is a ETF from Pacer ETFs. Over the past year IVV returned +21.64% while PALC returned +15.08%. Year to date, IVV is up 13.72% versus a gain of 10.91% for PALC.
Over three years, IVV compounded at +21.55% per year against +15.70% for PALC; over five years the annualized figures are +13.27% and +8.89% respectively. Across the full 6-year window we track, PALC has the edge at +16.05% annualized vs +7.04%. Past performance does not guarantee future results.
Risk: Volatility and Drawdowns
PALC has been the more volatile fund, with annualized monthly volatility of 17.3% 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 -24.4% for PALC. 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 0.85. They usually move together, but the gap leaves some room for diversification.
Fees and Cost Over Time
IVV charges 0.03% per year while PALC charges 0.60%. On a $10,000 position that is $3 vs $60 annually, a gap of $57 per year that compounds over a long holding period. On income, IVV currently yields 1.09% against 1.02% for PALC.
Holdings Overlap
IVV and PALC share 174 holdings out of 509 unique holdings combined, representing a 25.3% weight overlap.
Moderate overlap means holding both could provide meaningful diversification benefits.
Frequently Asked Questions
Which is cheaper, IVV or PALC?
IVV has an expense ratio of 0.03% while PALC charges 0.60%. IVV is the cheaper option. On a $10,000 investment, that is $57 per year of difference.
Which performed better, IVV or PALC?
Over the past year IVV returned +21.64% vs +15.08% for PALC, so IVV leads on 1-year performance. Over the longest common window we track (6 years), IVV annualized +7.04% vs +16.05% for PALC. Past performance does not guarantee future results.
Which is riskier, IVV or PALC?
PALC has been the more volatile fund at 17.3% annualized versus 15.1% for IVV. Worst drawdown: IVV -56.5% vs PALC -24.4%.
Should I hold both IVV and PALC?
IVV and PALC have a monthly-return correlation of 0.85, so combining them can provide real diversification depending on your allocation goals.
What is the holdings overlap between IVV and PALC?
IVV and PALC share 174 common holdings with a 25.3% weight overlap. Combined, they hold 509 unique securities.
Which pays a higher dividend, IVV or PALC?
IVV yields 1.09% while PALC yields 1.02%, so IVV currently pays the higher dividend yield.
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