IVV vs RFEM

Quick Verdict

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

Lower Fees: IVVHigher Returns: RFEMMore Diversified: IVV

Side-by-Side Comparison

MetricIVVRFEMWinner
Expense Ratio0.03%0.95%
AUM$865.2B$78M
Dividend Yield1.09%1.70%
Holdings508115
YTD Return+13.80%+20.32%
1Y Return+23.01%+36.06%
3Y Return (annualized)+21.77%+24.53%
5Y Return (annualized)+13.39%+10.21%
Volatility (annualized)15.1%17.1%
Max Drawdown-56.5%-45.6%
Fund FamilyiShares by BlackRock (US)First Trust Portfolios (US)
CategoryEquityEquity
InceptionMay 15, 2000Jun 14, 2016

IVV vs RFEM Performance

iShares Core S&P 500 ETF (IVV) is a ETF from iShares by BlackRock (US) and First Trust RiverFront Dynamic Emerging Markets ETF (RFEM) is a ETF from First Trust Portfolios (US). Over the past year IVV returned +23.01% while RFEM returned +36.06%. Year to date, IVV is up 13.80% versus a gain of 20.32% for RFEM.

Over three years, IVV compounded at +21.77% per year against +24.53% for RFEM; over five years the annualized figures are +13.39% and +10.21% respectively. Across the full 10-year window we track, RFEM has the edge at +8.75% annualized vs +7.04%. Past performance does not guarantee future results.

Risk: Volatility and Drawdowns

RFEM has been the more volatile fund, with annualized monthly volatility of 17.1% compared with 15.1% for IVV. 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 -45.6% for RFEM. 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 0.73. They usually move together, but the gap leaves some room for diversification.

Fees and Cost Over Time

IVV charges 0.03% per year while RFEM charges 0.95%. On a $10,000 position that is $3 vs $95 annually, a gap of $92 per year that compounds over a long holding period. On income, IVV currently yields 1.09% against 1.70% for RFEM.

Holdings Overlap

0.0%overlap

IVV and RFEM share 0 holdings out of 611 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 RFEM?

IVV has an expense ratio of 0.03% while RFEM charges 0.95%. IVV is the cheaper option. On a $10,000 investment, that is $92 per year of difference.

Which performed better, IVV or RFEM?

Over the past year IVV returned +23.01% vs +36.06% for RFEM, so RFEM leads on 1-year performance. Over the longest common window we track (10 years), IVV annualized +7.04% vs +8.75% for RFEM. Past performance does not guarantee future results.

Which is riskier, IVV or RFEM?

RFEM has been the more volatile fund at 17.1% annualized versus 15.1% for IVV. Worst drawdown: IVV -56.5% vs RFEM -45.6%.

Should I hold both IVV and RFEM?

IVV and RFEM have a monthly-return correlation of 0.73, so combining them can provide real diversification depending on your allocation goals.

What is the holdings overlap between IVV and RFEM?

IVV and RFEM share 0 common holdings with a 0.0% weight overlap. Combined, they hold 611 unique securities.

Which pays a higher dividend, IVV or RFEM?

IVV yields 1.09% while RFEM yields 1.70%, so RFEM currently pays the higher dividend yield.

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