IVV vs PSEP

IVV vs PSEP

Which is better, IVV or PSEP?

Large Cap Blend against Option Writing.

IVV has a lower expense ratio. IVV led over 1Y, 3Y, 5Y and the full window. The two have moved almost in lockstep, correlation 0.96.

Lower Fees: IVVHigher Returns: IVV

MarketXLS is not an investment adviser. This comparison is generated automatically from market data and is for information only. A Best mark means the better reading on that one measure, not a recommendation to buy.

Side-by-Side Comparison

MetricIVVPSEP
Expense Ratio0.03%Best0.79%
AUM$876.4B$815M
Dividend Yield1.06%0.00%
Holdings50812
YTD Return+12.27%Best+7.00%
1Y Return+17.04%Best+9.55%
3Y Return (annualized)+21.24%Best+12.22%
5Y Return (annualized)+13.08%Best+9.75%
Volatility (annualized)16.7%8.4%Best
Max Drawdown-33.9%-17.9%Best
$10,000 over 5 years$18,490Best$15,923
Top 10 Weight37.8%Tie37.8%Tie
Fund FamilyiShares by BlackRock (US)Innovator ETFs Trust
CategoryEquityAlternative
StyleLarge Cap BlendOption Writing
InceptionMay 15, 2000Aug 30, 2019

Volatility and max drawdown are measured over the window both funds cover: Sep 3, 2019 to Sep 17, 2026 (7 years).

IVV vs PSEP growth

Month-end closes. Both lines start at 0% in the first month shown, so the gap between them is the difference in growth across that window. The full view covers the 7 years both funds cover.

IVV vs PSEP Performance

iShares Core S&P 500 ETF (IVV) is an ETF from iShares by BlackRock (US) and Innovator U.S. Equity Power Buffer ETF - September (PSEP) is an ETF from Innovator ETFs Trust. Over the past year IVV returned +17.04% while PSEP returned +9.55%. Year to date, IVV is up 12.27% versus a gain of 7.00% for PSEP.

Over three years, IVV compounded at +21.24% per year against +12.22% for PSEP; over five years the annualized figures are +13.08% and +9.75% respectively. Across the full 7-year window we track, IVV has the edge at +15.92% annualized vs +9.56%.

Past performance does not guarantee future results.

Risk: Volatility and Drawdowns

IVV has been the more volatile fund, with annualized monthly volatility of 16.7% compared with 8.4% for PSEP. 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 -33.9% for IVV and -17.9% for PSEP. Drawdown depth is what each fund did in the worst stretch of the window measured above.

The two funds' monthly returns correlate at 0.96. They move almost in lockstep, so holding both mostly duplicates the same exposure.

Fees and Cost Over Time

IVV charges 0.03% per year while PSEP charges 0.79%. On a $10,000 position that is $3 vs $79 annually, a gap of $76 per year that compounds over a long holding period. On income, IVV currently yields 1.06% against 0.00% for PSEP.

Holdings Overlap

IVV already in PSEP96.7%
PSEP already in IVV96.3%

96.7% of IVV's money is in holdings PSEP also owns. 96.3% of PSEP's money is in holdings IVV also owns.

Most of IVV is already inside PSEP. Owning both mostly buys the same companies twice.

465 positions in common, counted across the 490 positions we hold weights for in IVV and 491 in PSEP, against full books of 508 and 12.

What only one of them owns

Our book lists 23 positions for PSEP that do not appear in our book for IVV (1.9% of the fund), and 18 for IVV that do not appear in PSEP (1.9%).

Some of those will be the same company recorded under a different code in one of the two books, so the real difference in what you would own is no larger than this and may be smaller. We do not name the individual positions here for that reason.

Top Shared Holdings

StockWeight in IVVWeight in PSEPDifference
NVDANvidia Corp8.07%8.21%0.14%
AAPLApple, Inc7.02%7.15%0.13%
MSFTMicrosoft Corp5.69%5.62%0.07%
AMZNAmazon.Com Inc3.84%3.76%0.08%
GOOGLAlphabet Inc,class A3.00%2.98%0.02%
AVGOBroadcom Inc2.65%2.51%0.14%
GOOGAlphabet Inc2.39%2.38%0.01%
METAMeta Platforms Inc1.90%1.99%0.09%
MUMicron Technology, Inc.1.63%1.60%0.03%
TSLATesla Inc1.56%1.57%0.01%

96.7% of IVV is already inside PSEP.

You probably hold more than these two. Add the rest and see how much of the whole book is the same companies twice.

IVVPSEP

Free for up to 10 holdings. No account needed.

Frequently Asked Questions

Which is cheaper, IVV or PSEP?

IVV has an expense ratio of 0.03% while PSEP charges 0.79%. IVV is the cheaper option, by $76 a year on a $10,000 investment.

Which performed better, IVV or PSEP?

Over the past year IVV returned +17.04% vs +9.55% for PSEP, so IVV leads on 1-year performance. Over the longest common window we track (7 years), IVV annualized +15.92% vs +9.56% for PSEP. Past performance does not guarantee future results. This is information, not a recommendation.

Which is riskier, IVV or PSEP?

IVV has been the more volatile fund at 16.7% annualized versus 8.4% for PSEP. Worst drawdown: IVV -33.9% vs PSEP -17.9%.

Should I hold both IVV and PSEP?

IVV and PSEP have a monthly-return correlation of 0.96, so they move almost identically. What is left to separate them is the fee and the index each one tracks. This is information, not a recommendation.

What is the holdings overlap between IVV and PSEP?

96.7% of IVV's money is in holdings PSEP also owns. 96.3% of PSEP's is in holdings IVV also owns. They hold 465 positions in common, counted across the 490 positions we hold weights for in IVV and 491 in PSEP.

Which pays a higher dividend, IVV or PSEP?

IVV yields 1.06% while PSEP yields 0.00%, so IVV currently pays the higher dividend yield.

Is PSEP better than IVV?

IVV has a lower expense ratio. IVV led over 1Y, 3Y, 5Y and the full window. The two have moved almost in lockstep, correlation 0.96. Which one suits a particular account depends on what it is for. This is information, not a recommendation.