IVV vs SHYG
iShares Core S&P 500 ETF vs iShares 0-5 Year High Yield Corporate Bond ETF
Quick Verdict
IVV has a lower expense ratio. IVV delivered stronger 1-year returns. SHYG offers more diversification with 1,165 holdings.
Side-by-Side Comparison
| Metric | IVV | SHYG | Winner |
|---|---|---|---|
| Expense Ratio | 0.03% | 0.30% | |
| AUM | $907.0B | $7.6B | |
| Dividend Yield | 1.10% | 7.03% | |
| Holdings | 508 | 1,165 | |
| YTD Return | +12.71% | +2.54% | |
| 1Y Return | +21.89% | +5.50% | |
| 3Y Return (annualized) | +22.08% | +8.16% | |
| 5Y Return (annualized) | +12.96% | +5.01% | |
| Volatility (annualized) | 15.1% | 5.5% | |
| Max Drawdown | -56.5% | -26.3% | |
| Fund Family | iShares by BlackRock (US) | iShares by BlackRock (US) | |
| Category | Equity | Fixed Income | |
| Inception | May 15, 2000 | Oct 15, 2013 |
IVV vs SHYG Performance
iShares Core S&P 500 ETF (IVV) is a ETF from iShares by BlackRock (US) and iShares 0-5 Year High Yield Corporate Bond ETF (SHYG) is a ETF from iShares by BlackRock (US). Over the past year IVV returned +21.89% while SHYG returned +5.50%. Year to date, IVV is up 12.71% versus a gain of 2.54% for SHYG.
Over three years, IVV compounded at +22.08% per year against +8.16% for SHYG; over five years the annualized figures are +12.96% and +5.01% respectively. Across the full 13-year window we track, IVV has the edge at +7.00% annualized vs +1.43%. 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 5.5% for SHYG. 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 -26.3% for SHYG. 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 0.78. They usually move together, but the gap leaves some room for diversification.
Fees and Cost Over Time
IVV charges 0.03% per year while SHYG charges 0.30%. On a $10,000 position that is $3 vs $30 annually, a gap of $27 per year that compounds over a long holding period. On income, IVV currently yields 1.10% against 7.03% for SHYG.
Holdings Overlap
IVV and SHYG share 1 holdings out of 1485 unique holdings combined, representing a 0.1% weight overlap.
Moderate overlap means holding both could provide meaningful diversification benefits.
Top Shared Holdings
| Stock | Weight in IVV | Weight in SHYG | Difference |
|---|---|---|---|
| XTSLA | 0.15% | 1.15% | 1.00% |
Frequently Asked Questions
Which is cheaper, IVV or SHYG?
IVV has an expense ratio of 0.03% while SHYG charges 0.30%. IVV is the cheaper option. On a $10,000 investment, that is $27 per year of difference.
Which performed better, IVV or SHYG?
Over the past year IVV returned +21.89% vs +5.50% for SHYG, so IVV leads on 1-year performance. Over the longest common window we track (13 years), IVV annualized +7.00% vs +1.43% for SHYG. Past performance does not guarantee future results.
Which is riskier, IVV or SHYG?
IVV has been the more volatile fund at 15.1% annualized versus 5.5% for SHYG. Worst drawdown: IVV -56.5% vs SHYG -26.3%.
Should I hold both IVV and SHYG?
IVV and SHYG have a monthly-return correlation of 0.78, so combining them can provide real diversification depending on your allocation goals.
What is the holdings overlap between IVV and SHYG?
IVV and SHYG share 1 common holdings with a 0.1% weight overlap. Combined, they hold 1485 unique securities.
Which pays a higher dividend, IVV or SHYG?
IVV yields 1.10% while SHYG yields 7.03%, so SHYG currently pays the higher dividend yield.
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