IVV vs PREF
iShares Core S&P 500 ETF vs Principal Spectrum Preferred Securities Active 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 | PREF | Winner |
|---|---|---|---|
| Expense Ratio | 0.03% | 0.55% | |
| AUM | $865.2B | $1.8B | |
| Dividend Yield | 1.09% | 5.13% | |
| Holdings | 508 | 153 | |
| YTD Return | +13.80% | +1.43% | |
| 1Y Return | +23.70% | +4.77% | |
| 3Y Return (annualized) | +21.49% | +8.16% | |
| 5Y Return (annualized) | +13.43% | +2.65% | |
| Volatility (annualized) | 15.1% | 7.8% | |
| Max Drawdown | -56.5% | -23.3% | |
| Fund Family | iShares by BlackRock (US) | Principal Funds | |
| Category | Equity | Allocation/Balanced | |
| Inception | May 15, 2000 | Jul 10, 2017 |
IVV vs PREF Performance
iShares Core S&P 500 ETF (IVV) is a ETF from iShares by BlackRock (US) and Principal Spectrum Preferred Securities Active ETF (PREF) is a ETF from Principal Funds. Over the past year IVV returned +23.70% while PREF returned +4.77%. Year to date, IVV is up 13.80% versus a gain of 1.43% for PREF.
Over three years, IVV compounded at +21.49% per year against +8.16% for PREF; over five years the annualized figures are +13.43% and +2.65% respectively. Across the full 9-year window we track, IVV has the edge at +7.05% annualized vs +2.07%. 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 7.8% for PREF. 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 -23.3% for PREF. 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 0.72. They usually move together, but the gap leaves some room for diversification.
Fees and Cost Over Time
IVV charges 0.03% per year while PREF charges 0.55%. On a $10,000 position that is $3 vs $55 annually, a gap of $52 per year that compounds over a long holding period. On income, IVV currently yields 1.09% against 5.13% for PREF.
Holdings Overlap
Frequently Asked Questions
Which is cheaper, IVV or PREF?
IVV has an expense ratio of 0.03% while PREF charges 0.55%. IVV is the cheaper option. On a $10,000 investment, that is $52 per year of difference.
Which performed better, IVV or PREF?
Over the past year IVV returned +23.70% vs +4.77% for PREF, so IVV leads on 1-year performance. Over the longest common window we track (9 years), IVV annualized +7.05% vs +2.07% for PREF. Past performance does not guarantee future results.
Which is riskier, IVV or PREF?
IVV has been the more volatile fund at 15.1% annualized versus 7.8% for PREF. Worst drawdown: IVV -56.5% vs PREF -23.3%.
Should I hold both IVV and PREF?
IVV and PREF have a monthly-return correlation of 0.72, so combining them can provide real diversification depending on your allocation goals.
What is the holdings overlap between IVV and PREF?
IVV and PREF share 2 common holdings with a 0.2% weight overlap. Combined, they hold 616 unique securities.
Which pays a higher dividend, IVV or PREF?
IVV yields 1.09% while PREF yields 5.13%, so PREF currently pays the higher dividend yield.
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