IVV vs TAFM
iShares Core S&P 500 ETF vs AB Tax-Aware Intermediate 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 | TAFM | Winner |
|---|---|---|---|
| Expense Ratio | 0.03% | 0.28% | |
| AUM | $865.2B | $700M | |
| Dividend Yield | 1.09% | 2.79% | |
| Holdings | 508 | 560 | |
| YTD Return | +14.50% | +1.16% | |
| 1Y Return | +22.02% | +5.52% | |
| 3Y Return (annualized) | +21.80% | - | |
| 5Y Return (annualized) | +13.37% | - | |
| Volatility (annualized) | 15.1% | 4.0% | |
| Max Drawdown | -56.5% | -4.7% | |
| Fund Family | iShares by BlackRock (US) | AllianceBernstein L.P. | |
| Category | Equity | Tax Preferred | |
| Inception | May 15, 2000 | Dec 13, 2023 |
IVV vs TAFM Performance
iShares Core S&P 500 ETF (IVV) is a ETF from iShares by BlackRock (US) and AB Tax-Aware Intermediate Municipal ETF (TAFM) is a ETF from AllianceBernstein L.P.. Over the past year IVV returned +22.02% while TAFM returned +5.52%. Year to date, IVV is up 14.50% versus a gain of 1.16% for TAFM.
Risk: Volatility and Drawdowns
IVV has been the more volatile fund, with annualized monthly volatility of 15.1% compared with 4.0% for TAFM. 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 -4.7% for TAFM. 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 0.52. They move independently enough that combining them can meaningfully diversify a portfolio.
Fees and Cost Over Time
IVV charges 0.03% per year while TAFM 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 1.09% against 2.79% for TAFM.
Holdings Overlap
IVV and TAFM share 0 holdings out of 726 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 TAFM?
IVV has an expense ratio of 0.03% while TAFM 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 TAFM?
Over the past year IVV returned +22.02% vs +5.52% for TAFM, so IVV leads on 1-year performance. Over the longest common window we track (3 years), IVV annualized +7.07% vs +3.59% for TAFM. Past performance does not guarantee future results.
Which is riskier, IVV or TAFM?
IVV has been the more volatile fund at 15.1% annualized versus 4.0% for TAFM. Worst drawdown: IVV -56.5% vs TAFM -4.7%.
Should I hold both IVV and TAFM?
IVV and TAFM have a monthly-return correlation of 0.52, so combining them can provide real diversification depending on your allocation goals.
What is the holdings overlap between IVV and TAFM?
IVV and TAFM share 0 common holdings with a 0.0% weight overlap. Combined, they hold 726 unique securities.
Which pays a higher dividend, IVV or TAFM?
IVV yields 1.09% while TAFM yields 2.79%, so TAFM currently pays the higher dividend yield.
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