IVV vs PMMF
iShares Core S&P 500 ETF vs iShares Prime Money Market 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 | PMMF | Winner |
|---|---|---|---|
| Expense Ratio | 0.03% | 0.20% | |
| AUM | $907.0B | $692M | |
| Dividend Yield | 1.10% | 4.06% | |
| Holdings | 508 | 248 | |
| YTD Return | +14.29% | +2.09% | |
| 1Y Return | +21.79% | +3.71% | |
| 3Y Return (annualized) | +22.19% | - | |
| 5Y Return (annualized) | +13.28% | - | |
| Volatility (annualized) | 15.1% | 0.7% | |
| Max Drawdown | -56.5% | -0.3% | |
| Fund Family | iShares by BlackRock (US) | iShares by BlackRock (US) | |
| Category | Equity | Money Market | |
| Inception | May 15, 2000 | Feb 4, 2025 |
IVV vs PMMF Performance
iShares Core S&P 500 ETF (IVV) is a ETF from iShares by BlackRock (US) and iShares Prime Money Market ETF (PMMF) is a ETF from iShares by BlackRock (US). Over the past year IVV returned +21.79% while PMMF returned +3.71%. Year to date, IVV is up 14.29% versus a gain of 2.09% for PMMF.
Risk: Volatility and Drawdowns
IVV has been the more volatile fund, with annualized monthly volatility of 15.1% compared with 0.7% for PMMF. 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 -0.3% for PMMF. 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 0.09. They move independently enough that combining them can meaningfully diversify a portfolio.
Fees and Cost Over Time
IVV charges 0.03% per year while PMMF charges 0.20%. On a $10,000 position that is $3 vs $20 annually, a gap of $17 per year that compounds over a long holding period. On income, IVV currently yields 1.10% against 4.06% for PMMF.
Holdings Overlap
IVV and PMMF share 0 holdings out of 506 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 PMMF?
IVV has an expense ratio of 0.03% while PMMF charges 0.20%. IVV is the cheaper option. On a $10,000 investment, that is $17 per year of difference.
Which performed better, IVV or PMMF?
Over the past year IVV returned +21.79% vs +3.71% for PMMF, so IVV leads on 1-year performance. Over the longest common window we track (2 years), IVV annualized +7.06% vs +3.94% for PMMF. Past performance does not guarantee future results.
Which is riskier, IVV or PMMF?
IVV has been the more volatile fund at 15.1% annualized versus 0.7% for PMMF. Worst drawdown: IVV -56.5% vs PMMF -0.3%.
Should I hold both IVV and PMMF?
IVV and PMMF have a monthly-return correlation of 0.09, so combining them can provide real diversification depending on your allocation goals.
What is the holdings overlap between IVV and PMMF?
IVV and PMMF share 0 common holdings with a 0.0% weight overlap. Combined, they hold 506 unique securities.
Which pays a higher dividend, IVV or PMMF?
IVV yields 1.10% while PMMF yields 4.06%, so PMMF currently pays the higher dividend yield.
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