IVV vs TAXE
iShares Core S&P 500 ETF vs T. Rowe Price Intermediate Municipal Income ETF
Quick Verdict
IVV has a lower expense ratio. IVV delivered stronger 1-year returns. TAXE offers more diversification with 575 holdings.
Side-by-Side Comparison
| Metric | IVV | TAXE | Winner |
|---|---|---|---|
| Expense Ratio | 0.03% | 0.24% | |
| AUM | $907.0B | $195M | |
| Dividend Yield | 1.10% | 3.63% | |
| Holdings | 508 | 575 | |
| YTD Return | +12.71% | +0.87% | |
| 1Y Return | +21.89% | +4.84% | |
| 3Y Return (annualized) | +22.08% | - | |
| 5Y Return (annualized) | +12.96% | - | |
| Volatility (annualized) | 15.1% | 3.5% | |
| Max Drawdown | -56.5% | -3.7% | |
| Fund Family | iShares by BlackRock (US) | T.Rowe Price | |
| Category | Equity | Fixed Income | |
| Inception | May 15, 2000 | Jul 10, 2024 |
IVV vs TAXE Performance
iShares Core S&P 500 ETF (IVV) is a ETF from iShares by BlackRock (US) and T. Rowe Price Intermediate Municipal Income ETF (TAXE) is a ETF from T.Rowe Price. Over the past year IVV returned +21.89% while TAXE returned +4.84%. Year to date, IVV is up 12.71% versus a gain of 0.87% for TAXE.
Risk: Volatility and Drawdowns
IVV has been the more volatile fund, with annualized monthly volatility of 15.1% compared with 3.5% for TAXE. 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 -3.7% for TAXE. 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 0.60. They move independently enough that combining them can meaningfully diversify a portfolio.
Fees and Cost Over Time
IVV charges 0.03% per year while TAXE charges 0.24%. On a $10,000 position that is $3 vs $24 annually, a gap of $21 per year that compounds over a long holding period. On income, IVV currently yields 1.10% against 3.63% for TAXE.
Holdings Overlap
IVV and TAXE share 0 holdings out of 639 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 TAXE?
IVV has an expense ratio of 0.03% while TAXE charges 0.24%. IVV is the cheaper option. On a $10,000 investment, that is $21 per year of difference.
Which performed better, IVV or TAXE?
Over the past year IVV returned +21.89% vs +4.84% for TAXE, so IVV leads on 1-year performance. Over the longest common window we track (2 years), IVV annualized +7.00% vs +3.94% for TAXE. Past performance does not guarantee future results.
Which is riskier, IVV or TAXE?
IVV has been the more volatile fund at 15.1% annualized versus 3.5% for TAXE. Worst drawdown: IVV -56.5% vs TAXE -3.7%.
Should I hold both IVV and TAXE?
IVV and TAXE have a monthly-return correlation of 0.60, so combining them can provide real diversification depending on your allocation goals.
What is the holdings overlap between IVV and TAXE?
IVV and TAXE share 0 common holdings with a 0.0% weight overlap. Combined, they hold 639 unique securities.
Which pays a higher dividend, IVV or TAXE?
IVV yields 1.10% while TAXE yields 3.63%, so TAXE currently pays the higher dividend yield.
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