IVV vs PFF
iShares Core S&P 500 ETF vs iShares Preferred and Income Securities 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 | PFF | Winner |
|---|---|---|---|
| Expense Ratio | 0.03% | 0.45% | |
| AUM | $907.0B | $13.3B | |
| Dividend Yield | 1.10% | 5.51% | |
| Holdings | 508 | 464 | |
| YTD Return | +14.29% | +1.58% | |
| 1Y Return | +21.79% | +3.46% | |
| 3Y Return (annualized) | +22.19% | +6.91% | |
| 5Y Return (annualized) | +13.28% | +1.11% | |
| Volatility (annualized) | 15.1% | 15.3% | |
| Max Drawdown | -56.5% | -70.2% | |
| Fund Family | iShares by BlackRock (US) | iShares by BlackRock (US) | |
| Category | Equity | Allocation/Balanced | |
| Inception | May 15, 2000 | Mar 26, 2007 |
IVV vs PFF Performance
iShares Core S&P 500 ETF (IVV) is a ETF from iShares by BlackRock (US) and iShares Preferred and Income Securities ETF (PFF) is a ETF from iShares by BlackRock (US). Over the past year IVV returned +21.79% while PFF returned +3.46%. Year to date, IVV is up 14.29% versus a gain of 1.58% for PFF.
Over three years, IVV compounded at +22.19% per year against +6.91% for PFF; over five years the annualized figures are +13.28% and +1.11% respectively. Across the full 19-year window we track, IVV has the edge at +7.06% annualized vs -0.81%. Past performance does not guarantee future results.
Risk: Volatility and Drawdowns
PFF has been the more volatile fund, with annualized monthly volatility of 15.3% 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 -70.2% for PFF. 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 0.60. They move independently enough that combining them can meaningfully diversify a portfolio.
Fees and Cost Over Time
IVV charges 0.03% per year while PFF charges 0.45%. On a $10,000 position that is $3 vs $45 annually, a gap of $42 per year that compounds over a long holding period. On income, IVV currently yields 1.10% against 5.51% for PFF.
Holdings Overlap
IVV and PFF share 60 holdings out of 656 unique holdings combined, representing a 10.4% weight overlap.
Moderate overlap means holding both could provide meaningful diversification benefits.
Frequently Asked Questions
Which is cheaper, IVV or PFF?
IVV has an expense ratio of 0.03% while PFF charges 0.45%. IVV is the cheaper option. On a $10,000 investment, that is $42 per year of difference.
Which performed better, IVV or PFF?
Over the past year IVV returned +21.79% vs +3.46% for PFF, so IVV leads on 1-year performance. Over the longest common window we track (19 years), IVV annualized +7.06% vs -0.81% for PFF. Past performance does not guarantee future results.
Which is riskier, IVV or PFF?
PFF has been the more volatile fund at 15.3% annualized versus 15.1% for IVV. Worst drawdown: IVV -56.5% vs PFF -70.2%.
Should I hold both IVV and PFF?
IVV and PFF have a monthly-return correlation of 0.60, so combining them can provide real diversification depending on your allocation goals.
What is the holdings overlap between IVV and PFF?
IVV and PFF share 60 common holdings with a 10.4% weight overlap. Combined, they hold 656 unique securities.
Which pays a higher dividend, IVV or PFF?
IVV yields 1.10% while PFF yields 5.51%, so PFF currently pays the higher dividend yield.
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