IVV vs PSEP

Quick Verdict

IVV has a lower expense ratio. IVV delivered stronger 1-year returns. IVV offers more diversification with 505 holdings.

Lower Fees: IVVHigher Returns: IVVMore Diversified: IVV

Side-by-Side Comparison

MetricIVVPSEPWinner
Expense Ratio0.03%0.79%
AUM$865.2B$843M
Dividend Yield1.09%0.00%
Holdings5086
YTD Return+13.80%+6.68%
1Y Return+23.70%+12.16%
3Y Return (annualized)+21.49%+12.10%
5Y Return (annualized)+13.43%+9.54%
Volatility (annualized)15.1%8.4%
Max Drawdown-56.5%-17.9%
Fund FamilyiShares by BlackRock (US)Innovator ETFs Trust
CategoryEquityAlternative
InceptionMay 15, 2000Aug 30, 2019

IVV vs PSEP Performance

iShares Core S&P 500 ETF (IVV) is a ETF from iShares by BlackRock (US) and Innovator U.S. Equity Power Buffer ETF - September (PSEP) is a ETF from Innovator ETFs Trust. Over the past year IVV returned +23.70% while PSEP returned +12.16%. Year to date, IVV is up 13.80% versus a gain of 6.68% for PSEP.

Over three years, IVV compounded at +21.49% per year against +12.10% for PSEP; over five years the annualized figures are +13.43% and +9.54% respectively. Across the full 7-year window we track, PSEP has the edge at +9.68% annualized vs +7.05%. 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 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 -56.5% for IVV and -17.9% for PSEP. 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 0.96. 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 1.09% against 0.00% for PSEP.

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. On a $10,000 investment, that is $76 per year of difference.

Which performed better, IVV or PSEP?

Over the past year IVV returned +23.70% vs +12.16% for PSEP, so IVV leads on 1-year performance. Over the longest common window we track (7 years), IVV annualized +7.05% vs +9.68% for PSEP. Past performance does not guarantee future results.

Which is riskier, IVV or PSEP?

IVV has been the more volatile fund at 15.1% annualized versus 8.4% for PSEP. Worst drawdown: IVV -56.5% 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. Holding both adds little diversification - most investors pick one, usually on fees or the specific index tracked.

Which pays a higher dividend, IVV or PSEP?

IVV yields 1.09% while PSEP yields 0.00%, so IVV currently pays the higher dividend yield.

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