IVV vs TAFL
iShares Core S&P 500 ETF vs AB Tax-Aware Long Municipal ETF
Quick Verdict
IVV has a lower expense ratio. IVV delivered stronger 1-year returns. IVV offers more diversification with 508 holdings.
Side-by-Side Comparison
| Metric | IVV | TAFL | Winner |
|---|---|---|---|
| Expense Ratio | 0.03% | 0.28% | |
| AUM | $907.0B | $65M | |
| Dividend Yield | 1.10% | 4.15% | |
| Holdings | 508 | 156 | |
| YTD Return | +12.28% | +1.20% | |
| 1Y Return | +20.94% | +7.01% | |
| 3Y Return (annualized) | +21.81% | - | |
| 5Y Return (annualized) | +13.05% | - | |
| Volatility (annualized) | 15.1% | 4.8% | |
| Max Drawdown | -56.5% | -6.3% | |
| Fund Family | iShares by BlackRock (US) | AllianceBernstein L.P. | |
| Category | Equity | Tax Preferred | |
| Inception | May 15, 2000 | Dec 13, 2023 |
IVV vs TAFL Performance
iShares Core S&P 500 ETF (IVV) is a ETF from iShares by BlackRock (US) and AB Tax-Aware Long Municipal ETF (TAFL) is a ETF from AllianceBernstein L.P.. Over the past year IVV returned +20.94% while TAFL returned +7.01%. Year to date, IVV is up 12.28% versus a gain of 1.20% for TAFL.
Risk: Volatility and Drawdowns
IVV has been the more volatile fund, with annualized monthly volatility of 15.1% compared with 4.8% for TAFL. 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 -6.3% for TAFL. 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 0.47. They move independently enough that combining them can meaningfully diversify a portfolio.
Fees and Cost Over Time
IVV charges 0.03% per year while TAFL charges 0.28%. On a $10,000 position that is $3 vs $28 annually, a gap of $25 per year that compounds over a long holding period. On income, IVV currently yields 1.10% against 4.15% for TAFL.
Holdings Overlap
IVV and TAFL share 0 holdings out of 572 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 TAFL?
IVV has an expense ratio of 0.03% while TAFL charges 0.28%. IVV is the cheaper option. On a $10,000 investment, that is $25 per year of difference.
Which performed better, IVV or TAFL?
Over the past year IVV returned +20.94% vs +7.01% for TAFL, so IVV leads on 1-year performance. Over the longest common window we track (3 years), IVV annualized +6.98% vs +3.24% for TAFL. Past performance does not guarantee future results.
Which is riskier, IVV or TAFL?
IVV has been the more volatile fund at 15.1% annualized versus 4.8% for TAFL. Worst drawdown: IVV -56.5% vs TAFL -6.3%.
Should I hold both IVV and TAFL?
IVV and TAFL have a monthly-return correlation of 0.47, so combining them can provide real diversification depending on your allocation goals.
What is the holdings overlap between IVV and TAFL?
IVV and TAFL share 0 common holdings with a 0.0% weight overlap. Combined, they hold 572 unique securities.
Which pays a higher dividend, IVV or TAFL?
IVV yields 1.10% while TAFL yields 4.15%, so TAFL currently pays the higher dividend yield.
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