IVV vs PDT
iShares Core S&P 500 ETF vs John Hancock Premium Dividend 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 | PDT | Winner |
|---|---|---|---|
| Expense Ratio | 0.03% | 2.41% | |
| AUM | $907.0B | $690M | |
| Dividend Yield | 1.10% | 6.95% | |
| Holdings | 508 | 144 | |
| YTD Return | +12.28% | +4.64% | |
| 1Y Return | +20.94% | +2.56% | |
| 3Y Return (annualized) | +21.81% | +16.94% | |
| 5Y Return (annualized) | +13.05% | +2.63% | |
| Volatility (annualized) | 15.1% | 16.7% | |
| Max Drawdown | -56.5% | -62.6% | |
| Fund Family | iShares by BlackRock (US) | John Hancock Investment Management | |
| Category | Equity | Allocation/Balanced | |
| Inception | May 15, 2000 | Dec 21, 1989 |
IVV vs PDT Performance
iShares Core S&P 500 ETF (IVV) is a ETF from iShares by BlackRock (US) and John Hancock Premium Dividend Fund (PDT) is a ETF from John Hancock Investment Management. Over the past year IVV returned +20.94% while PDT returned +2.56%. Year to date, IVV is up 12.28% versus a gain of 4.64% for PDT.
Over three years, IVV compounded at +21.81% per year against +16.94% for PDT; over five years the annualized figures are +13.05% and +2.63% respectively. Across the full 26-year window we track, IVV has the edge at +6.98% annualized vs +1.91%. Past performance does not guarantee future results.
Risk: Volatility and Drawdowns
PDT has been the more volatile fund, with annualized monthly volatility of 16.7% 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 -62.6% for PDT. 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 0.53. They move independently enough that combining them can meaningfully diversify a portfolio.
Fees and Cost Over Time
IVV charges 0.03% per year while PDT charges 2.41%. On a $10,000 position that is $3 vs $241 annually, a gap of $238 per year that compounds over a long holding period. On income, IVV currently yields 1.10% against 6.95% for PDT.
Holdings Overlap
IVV and PDT share 38 holdings out of 566 unique holdings combined, representing a 4.7% weight overlap.
Moderate overlap means holding both could provide meaningful diversification benefits.
Frequently Asked Questions
Which is cheaper, IVV or PDT?
IVV has an expense ratio of 0.03% while PDT charges 2.41%. IVV is the cheaper option. On a $10,000 investment, that is $238 per year of difference.
Which performed better, IVV or PDT?
Over the past year IVV returned +20.94% vs +2.56% for PDT, so IVV leads on 1-year performance. Over the longest common window we track (26 years), IVV annualized +6.98% vs +1.91% for PDT. Past performance does not guarantee future results.
Which is riskier, IVV or PDT?
PDT has been the more volatile fund at 16.7% annualized versus 15.1% for IVV. Worst drawdown: IVV -56.5% vs PDT -62.6%.
Should I hold both IVV and PDT?
IVV and PDT have a monthly-return correlation of 0.53, so combining them can provide real diversification depending on your allocation goals.
What is the holdings overlap between IVV and PDT?
IVV and PDT share 38 common holdings with a 4.7% weight overlap. Combined, they hold 566 unique securities.
Which pays a higher dividend, IVV or PDT?
IVV yields 1.10% while PDT yields 6.95%, so PDT currently pays the higher dividend yield.
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