IVV vs PSTP

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

MetricIVVPSTPWinner
Expense Ratio0.03%0.89%
AUM$865.2B$132M
Dividend Yield1.09%0.00%
Holdings5086
YTD Return+13.72%+5.99%
1Y Return+21.64%+9.80%
3Y Return (annualized)+21.55%+11.15%
5Y Return (annualized)+13.27%-
Volatility (annualized)15.1%8.3%
Max Drawdown-56.5%-12.5%
Fund FamilyiShares by BlackRock (US)Innovator ETFs Trust
CategoryEquityAlternative
InceptionMay 15, 2000Mar 7, 2022

IVV vs PSTP Performance

iShares Core S&P 500 ETF (IVV) is a ETF from iShares by BlackRock (US) and Innovator Power Buffer Step Up Strategy ETF (PSTP) is a ETF from Innovator ETFs Trust. Over the past year IVV returned +21.64% while PSTP returned +9.80%. Year to date, IVV is up 13.72% versus a gain of 5.99% for PSTP.

Over three years, IVV compounded at +21.55% per year against +11.15% for PSTP. Across the full 4-year window we track, PSTP has the edge at +9.06% annualized vs +7.04%. 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 8.3% for PSTP. 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 -12.5% for PSTP. 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 0.99. 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 PSTP charges 0.89%. On a $10,000 position that is $3 vs $89 annually, a gap of $86 per year that compounds over a long holding period. On income, IVV currently yields 1.09% against 0.00% for PSTP.

Frequently Asked Questions

Which is cheaper, IVV or PSTP?

IVV has an expense ratio of 0.03% while PSTP charges 0.89%. IVV is the cheaper option. On a $10,000 investment, that is $86 per year of difference.

Which performed better, IVV or PSTP?

Over the past year IVV returned +21.64% vs +9.80% for PSTP, so IVV leads on 1-year performance. Over the longest common window we track (4 years), IVV annualized +7.04% vs +9.06% for PSTP. Past performance does not guarantee future results.

Which is riskier, IVV or PSTP?

IVV has been the more volatile fund at 15.1% annualized versus 8.3% for PSTP. Worst drawdown: IVV -56.5% vs PSTP -12.5%.

Should I hold both IVV and PSTP?

IVV and PSTP have a monthly-return correlation of 0.99, 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 PSTP?

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

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