IVV vs RAVI
iShares Core S&P 500 ETF vs FlexShares Ultra Short Income Fund
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 | RAVI | Winner |
|---|---|---|---|
| Expense Ratio | 0.03% | 0.25% | |
| AUM | $865.2B | $1.5B | |
| Dividend Yield | 1.09% | 4.37% | |
| Holdings | 508 | 254 | |
| YTD Return | +13.72% | +1.88% | |
| 1Y Return | +21.64% | +3.74% | |
| 3Y Return (annualized) | +21.55% | +4.96% | |
| 5Y Return (annualized) | +13.27% | +3.56% | |
| Volatility (annualized) | 15.1% | 1.2% | |
| Max Drawdown | -56.5% | -3.8% | |
| Fund Family | iShares by BlackRock (US) | Flexshares Trust | |
| Category | Equity | Fixed Income | |
| Inception | May 15, 2000 | Oct 9, 2012 |
IVV vs RAVI Performance
iShares Core S&P 500 ETF (IVV) is a ETF from iShares by BlackRock (US) and FlexShares Ultra Short Income Fund (RAVI) is a ETF from Flexshares Trust. Over the past year IVV returned +21.64% while RAVI returned +3.74%. Year to date, IVV is up 13.72% versus a gain of 1.88% for RAVI.
Over three years, IVV compounded at +21.55% per year against +4.96% for RAVI; over five years the annualized figures are +13.27% and +3.56% respectively. Across the full 14-year window we track, IVV has the edge at +7.04% annualized vs +1.40%. 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 1.2% for RAVI. 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 -3.8% for RAVI. 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 0.42. They move independently enough that combining them can meaningfully diversify a portfolio.
Fees and Cost Over Time
IVV charges 0.03% per year while RAVI charges 0.25%. On a $10,000 position that is $3 vs $25 annually, a gap of $22 per year that compounds over a long holding period. On income, IVV currently yields 1.09% against 4.37% for RAVI.
Holdings Overlap
IVV and RAVI share 0 holdings out of 700 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 RAVI?
IVV has an expense ratio of 0.03% while RAVI charges 0.25%. IVV is the cheaper option. On a $10,000 investment, that is $22 per year of difference.
Which performed better, IVV or RAVI?
Over the past year IVV returned +21.64% vs +3.74% for RAVI, so IVV leads on 1-year performance. Over the longest common window we track (14 years), IVV annualized +7.04% vs +1.40% for RAVI. Past performance does not guarantee future results.
Which is riskier, IVV or RAVI?
IVV has been the more volatile fund at 15.1% annualized versus 1.2% for RAVI. Worst drawdown: IVV -56.5% vs RAVI -3.8%.
Should I hold both IVV and RAVI?
IVV and RAVI have a monthly-return correlation of 0.42, so combining them can provide real diversification depending on your allocation goals.
What is the holdings overlap between IVV and RAVI?
IVV and RAVI share 0 common holdings with a 0.0% weight overlap. Combined, they hold 700 unique securities.
Which pays a higher dividend, IVV or RAVI?
IVV yields 1.09% while RAVI yields 4.37%, so RAVI currently pays the higher dividend yield.
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