IVV vs PHB
iShares Core S&P 500 ETF vs Invesco Fundamental High Yield Corporate Bond 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 | PHB | Winner |
|---|---|---|---|
| Expense Ratio | 0.03% | 0.50% | |
| AUM | $865.2B | $387M | |
| Dividend Yield | 1.09% | 5.06% | |
| Holdings | 508 | 268 | |
| YTD Return | +13.80% | +0.43% | |
| 1Y Return | +23.70% | +7.15% | |
| 3Y Return (annualized) | +21.49% | +8.52% | |
| 5Y Return (annualized) | +13.43% | +3.74% | |
| Volatility (annualized) | 15.1% | 16.1% | |
| Max Drawdown | -56.5% | -71.2% | |
| Fund Family | iShares by BlackRock (US) | Invesco (US) | |
| Category | Equity | Fixed Income | |
| Inception | May 15, 2000 | Nov 15, 2007 |
IVV vs PHB Performance
iShares Core S&P 500 ETF (IVV) is a ETF from iShares by BlackRock (US) and Invesco Fundamental High Yield Corporate Bond ETF (PHB) is a ETF from Invesco (US). Over the past year IVV returned +23.70% while PHB returned +7.15%. Year to date, IVV is up 13.80% versus a gain of 0.43% for PHB.
Over three years, IVV compounded at +21.49% per year against +8.52% for PHB; over five years the annualized figures are +13.43% and +3.74% respectively. Across the full 18-year window we track, IVV has the edge at +7.05% annualized vs -1.63%. Past performance does not guarantee future results.
Risk: Volatility and Drawdowns
PHB has been the more volatile fund, with annualized monthly volatility of 16.1% 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 -71.2% for PHB. 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 0.38. They move independently enough that combining them can meaningfully diversify a portfolio.
Fees and Cost Over Time
IVV charges 0.03% per year while PHB charges 0.50%. On a $10,000 position that is $3 vs $50 annually, a gap of $47 per year that compounds over a long holding period. On income, IVV currently yields 1.09% against 5.06% for PHB.
Holdings Overlap
IVV and PHB share 0 holdings out of 765 unique holdings combined, representing a 0.0% weight overlap.
Moderate overlap means holding both could provide meaningful diversification benefits.
Frequently Asked Questions
Which is cheaper, IVV or PHB?
IVV has an expense ratio of 0.03% while PHB charges 0.50%. IVV is the cheaper option. On a $10,000 investment, that is $47 per year of difference.
Which performed better, IVV or PHB?
Over the past year IVV returned +23.70% vs +7.15% for PHB, so IVV leads on 1-year performance. Over the longest common window we track (18 years), IVV annualized +7.05% vs -1.63% for PHB. Past performance does not guarantee future results.
Which is riskier, IVV or PHB?
PHB has been the more volatile fund at 16.1% annualized versus 15.1% for IVV. Worst drawdown: IVV -56.5% vs PHB -71.2%.
Should I hold both IVV and PHB?
IVV and PHB have a monthly-return correlation of 0.38, so combining them can provide real diversification depending on your allocation goals.
What is the holdings overlap between IVV and PHB?
IVV and PHB share 0 common holdings with a 0.0% weight overlap. Combined, they hold 765 unique securities.
Which pays a higher dividend, IVV or PHB?
IVV yields 1.09% while PHB yields 5.06%, so PHB currently pays the higher dividend yield.
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