IVV vs PEY
iShares Core S&P 500 ETF vs Invesco High Yield Equity Dividend Achievers ETF
Quick Verdict
IVV has a lower expense ratio. PEY delivered stronger 1-year returns. IVV offers more diversification with 508 holdings.
Side-by-Side Comparison
| Metric | IVV | PEY | Winner |
|---|---|---|---|
| Expense Ratio | 0.03% | 0.54% | |
| AUM | $907.0B | $1.2B | |
| Dividend Yield | 1.10% | 4.22% | |
| Holdings | 508 | 52 | |
| YTD Return | +12.28% | +25.65% | |
| 1Y Return | +20.94% | +24.18% | |
| 3Y Return (annualized) | +21.81% | +12.94% | |
| 5Y Return (annualized) | +13.05% | +9.25% | |
| Volatility (annualized) | 15.1% | 17.6% | |
| Max Drawdown | -56.5% | -75.6% | |
| Fund Family | iShares by BlackRock (US) | Invesco (US) | |
| Category | Equity | Equity | |
| Inception | May 15, 2000 | Dec 9, 2004 |
IVV vs PEY Performance
iShares Core S&P 500 ETF (IVV) is a ETF from iShares by BlackRock (US) and Invesco High Yield Equity Dividend Achievers ETF (PEY) is a ETF from Invesco (US). Over the past year IVV returned +20.94% while PEY returned +24.18%. Year to date, IVV is up 12.28% versus a gain of 25.65% for PEY.
Over three years, IVV compounded at +21.81% per year against +12.94% for PEY; over five years the annualized figures are +13.05% and +9.25% respectively. Across the full 22-year window we track, IVV has the edge at +6.98% annualized vs +3.66%. Past performance does not guarantee future results.
Risk: Volatility and Drawdowns
PEY has been the more volatile fund, with annualized monthly volatility of 17.6% 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 -75.6% for PEY. 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 0.73. They usually move together, but the gap leaves some room for diversification.
Fees and Cost Over Time
IVV charges 0.03% per year while PEY charges 0.54%. On a $10,000 position that is $3 vs $54 annually, a gap of $51 per year that compounds over a long holding period. On income, IVV currently yields 1.10% against 4.22% for PEY.
Holdings Overlap
IVV and PEY share 26 holdings out of 529 unique holdings combined, representing a 2.5% weight overlap.
Moderate overlap means holding both could provide meaningful diversification benefits.
Frequently Asked Questions
Which is cheaper, IVV or PEY?
IVV has an expense ratio of 0.03% while PEY charges 0.54%. IVV is the cheaper option. On a $10,000 investment, that is $51 per year of difference.
Which performed better, IVV or PEY?
Over the past year IVV returned +20.94% vs +24.18% for PEY, so PEY leads on 1-year performance. Over the longest common window we track (22 years), IVV annualized +6.98% vs +3.66% for PEY. Past performance does not guarantee future results.
Which is riskier, IVV or PEY?
PEY has been the more volatile fund at 17.6% annualized versus 15.1% for IVV. Worst drawdown: IVV -56.5% vs PEY -75.6%.
Should I hold both IVV and PEY?
IVV and PEY have a monthly-return correlation of 0.73, so combining them can provide real diversification depending on your allocation goals.
What is the holdings overlap between IVV and PEY?
IVV and PEY share 26 common holdings with a 2.5% weight overlap. Combined, they hold 529 unique securities.
Which pays a higher dividend, IVV or PEY?
IVV yields 1.10% while PEY yields 4.22%, so PEY currently pays the higher dividend yield.
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