IVV vs PMM
iShares Core S&P 500 ETF vs Putnam Managed Municipal Income Trust
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 | PMM | Winner |
|---|---|---|---|
| Expense Ratio | 0.03% | 0.98% | |
| AUM | $907.0B | $2,812.2 | |
| Dividend Yield | 1.10% | 5.04% | |
| Holdings | 508 | 396 | |
| YTD Return | +14.29% | +5.21% | |
| 1Y Return | +21.79% | +13.29% | |
| 3Y Return (annualized) | +22.19% | +8.23% | |
| 5Y Return (annualized) | +13.28% | -0.90% | |
| Volatility (annualized) | 15.1% | 13.4% | |
| Max Drawdown | -56.5% | -63.9% | |
| Fund Family | iShares by BlackRock (US) | Putnam Investments | |
| Category | Equity | Tax Preferred | |
| Inception | May 15, 2000 | Feb 24, 1989 |
IVV vs PMM Performance
iShares Core S&P 500 ETF (IVV) is a ETF from iShares by BlackRock (US) and Putnam Managed Municipal Income Trust (PMM) is a ETF from Putnam Investments. Over the past year IVV returned +21.79% while PMM returned +13.29%. Year to date, IVV is up 14.29% versus a gain of 5.21% for PMM.
Over three years, IVV compounded at +22.19% per year against +8.23% for PMM; over five years the annualized figures are +13.28% and -0.90% respectively. Across the full 26-year window we track, IVV has the edge at +7.06% annualized vs -0.88%. Past performance does not guarantee future results.
Risk: Volatility and Drawdowns
IVV has been the more volatile fund, with annualized monthly volatility of 15.1% compared with 13.4% for PMM. 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 -63.9% for PMM. 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 0.31. They move independently enough that combining them can meaningfully diversify a portfolio.
Fees and Cost Over Time
IVV charges 0.03% per year while PMM charges 0.98%. On a $10,000 position that is $3 vs $98 annually, a gap of $95 per year that compounds over a long holding period. On income, IVV currently yields 1.10% against 5.04% for PMM.
Holdings Overlap
IVV and PMM share 0 holdings out of 629 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 PMM?
IVV has an expense ratio of 0.03% while PMM charges 0.98%. IVV is the cheaper option. On a $10,000 investment, that is $95 per year of difference.
Which performed better, IVV or PMM?
Over the past year IVV returned +21.79% vs +13.29% for PMM, so IVV leads on 1-year performance. Over the longest common window we track (26 years), IVV annualized +7.06% vs -0.88% for PMM. Past performance does not guarantee future results.
Which is riskier, IVV or PMM?
IVV has been the more volatile fund at 15.1% annualized versus 13.4% for PMM. Worst drawdown: IVV -56.5% vs PMM -63.9%.
Should I hold both IVV and PMM?
IVV and PMM have a monthly-return correlation of 0.31, so combining them can provide real diversification depending on your allocation goals.
What is the holdings overlap between IVV and PMM?
IVV and PMM share 0 common holdings with a 0.0% weight overlap. Combined, they hold 629 unique securities.
Which pays a higher dividend, IVV or PMM?
IVV yields 1.10% while PMM yields 5.04%, so PMM currently pays the higher dividend yield.
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