IVV vs TAFI
iShares Core S&P 500 ETF vs AB Tax Aware Short Duration Municipal ETF
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 | TAFI | Winner |
|---|---|---|---|
| Expense Ratio | 0.03% | 0.27% | |
| AUM | $865.2B | $1.4B | |
| Dividend Yield | 1.09% | 2.98% | |
| Holdings | 508 | 624 | |
| YTD Return | +13.43% | +1.00% | |
| 1Y Return | +22.61% | +2.56% | |
| 3Y Return (annualized) | +21.47% | +3.50% | |
| 5Y Return (annualized) | +13.26% | - | |
| Volatility (annualized) | 15.1% | 2.3% | |
| Max Drawdown | -56.5% | -1.9% | |
| Fund Family | iShares by BlackRock (US) | AllianceBernstein L.P. | |
| Category | Equity | Tax Preferred | |
| Inception | May 15, 2000 | Sep 13, 2022 |
IVV vs TAFI Performance
iShares Core S&P 500 ETF (IVV) is a ETF from iShares by BlackRock (US) and AB Tax Aware Short Duration Municipal ETF (TAFI) is a ETF from AllianceBernstein L.P.. Over the past year IVV returned +22.61% while TAFI returned +2.56%. Year to date, IVV is up 13.43% versus a gain of 1.00% for TAFI.
Over three years, IVV compounded at +21.47% per year against +3.50% for TAFI. Across the full 4-year window we track, IVV has the edge at +7.03% annualized vs +3.27%. 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 2.3% for TAFI. 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 -1.9% for TAFI. 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 0.59. They move independently enough that combining them can meaningfully diversify a portfolio.
Fees and Cost Over Time
IVV charges 0.03% per year while TAFI charges 0.27%. On a $10,000 position that is $3 vs $27 annually, a gap of $24 per year that compounds over a long holding period. On income, IVV currently yields 1.09% against 2.98% for TAFI.
Holdings Overlap
IVV and TAFI share 1 holdings out of 683 unique holdings combined, representing a 0.0% weight overlap.
Moderate overlap means holding both could provide meaningful diversification benefits.
Top Shared Holdings
| Stock | Weight in IVV | Weight in TAFI | Difference |
|---|---|---|---|
| C | 0.35% | 0.01% | 0.34% |
Frequently Asked Questions
Which is cheaper, IVV or TAFI?
IVV has an expense ratio of 0.03% while TAFI charges 0.27%. IVV is the cheaper option. On a $10,000 investment, that is $24 per year of difference.
Which performed better, IVV or TAFI?
Over the past year IVV returned +22.61% vs +2.56% for TAFI, so IVV leads on 1-year performance. Over the longest common window we track (4 years), IVV annualized +7.03% vs +3.27% for TAFI. Past performance does not guarantee future results.
Which is riskier, IVV or TAFI?
IVV has been the more volatile fund at 15.1% annualized versus 2.3% for TAFI. Worst drawdown: IVV -56.5% vs TAFI -1.9%.
Should I hold both IVV and TAFI?
IVV and TAFI have a monthly-return correlation of 0.59, so combining them can provide real diversification depending on your allocation goals.
What is the holdings overlap between IVV and TAFI?
IVV and TAFI share 1 common holdings with a 0.0% weight overlap. Combined, they hold 683 unique securities.
Which pays a higher dividend, IVV or TAFI?
IVV yields 1.09% while TAFI yields 2.98%, so TAFI currently pays the higher dividend yield.
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