IVV vs SHYD
iShares Core S&P 500 ETF vs VanEck Short High Yield Muni ETF
Quick Verdict
IVV has a lower expense ratio. IVV delivered stronger 1-year returns. SHYD offers more diversification with 541 holdings.
Side-by-Side Comparison
| Metric | IVV | SHYD | Winner |
|---|---|---|---|
| Expense Ratio | 0.03% | 0.32% | |
| AUM | $907.0B | $450M | |
| Dividend Yield | 1.10% | 3.63% | |
| Holdings | 508 | 541 | |
| YTD Return | +12.71% | -0.83% | |
| 1Y Return | +21.89% | +1.35% | |
| 3Y Return (annualized) | +22.08% | +3.67% | |
| 5Y Return (annualized) | +12.96% | +0.27% | |
| Volatility (annualized) | 15.1% | 5.7% | |
| Max Drawdown | -56.5% | -31.2% | |
| Fund Family | iShares by BlackRock (US) | VanEck | |
| Category | Equity | Tax Preferred | |
| Inception | May 15, 2000 | Jan 13, 2014 |
IVV vs SHYD Performance
iShares Core S&P 500 ETF (IVV) is a ETF from iShares by BlackRock (US) and VanEck Short High Yield Muni ETF (SHYD) is a ETF from VanEck. Over the past year IVV returned +21.89% while SHYD returned +1.35%. Year to date, IVV is up 12.71% versus a loss of 0.83% for SHYD.
Over three years, IVV compounded at +22.08% per year against +3.67% for SHYD; over five years the annualized figures are +12.96% and +0.27% respectively. Across the full 13-year window we track, IVV has the edge at +7.00% annualized vs +2.07%. 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 5.7% for SHYD. 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 -31.2% for SHYD. 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 SHYD charges 0.32%. On a $10,000 position that is $3 vs $32 annually, a gap of $29 per year that compounds over a long holding period. On income, IVV currently yields 1.10% against 3.63% for SHYD.
Holdings Overlap
IVV and SHYD share 0 holdings out of 512 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 SHYD?
IVV has an expense ratio of 0.03% while SHYD charges 0.32%. IVV is the cheaper option. On a $10,000 investment, that is $29 per year of difference.
Which performed better, IVV or SHYD?
Over the past year IVV returned +21.89% vs +1.35% for SHYD, so IVV leads on 1-year performance. Over the longest common window we track (13 years), IVV annualized +7.00% vs +2.07% for SHYD. Past performance does not guarantee future results.
Which is riskier, IVV or SHYD?
IVV has been the more volatile fund at 15.1% annualized versus 5.7% for SHYD. Worst drawdown: IVV -56.5% vs SHYD -31.2%.
Should I hold both IVV and SHYD?
IVV and SHYD 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 SHYD?
IVV and SHYD share 0 common holdings with a 0.0% weight overlap. Combined, they hold 512 unique securities.
Which pays a higher dividend, IVV or SHYD?
IVV yields 1.10% while SHYD yields 3.63%, so SHYD currently pays the higher dividend yield.
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