IVV vs TAXF
iShares Core S&P 500 ETF vs American Century Diversified Municipal Bond ETF
Which is better, IVV or TAXF?
Large Cap Blend against Municipal Bond.
IVV has a lower expense ratio. IVV led over 1Y, 3Y, 5Y and the full window.
MarketXLS is not an investment adviser. This comparison is generated automatically from market data and is for information only. A Best mark means the better reading on that one measure, not a recommendation to buy.
Side-by-Side Comparison
| Metric | IVV | TAXF |
|---|---|---|
| Expense Ratio | 0.03%Best | 0.25% |
| AUM | $876.4B | $680M |
| Dividend Yield | 1.06% | 3.88% |
| Holdings | 508 | 785 |
| YTD Return | +12.51%Best | -1.54% |
| 1Y Return | +17.57%Best | +0.50% |
| 3Y Return (annualized) | +21.27%Best | +3.12% |
| 5Y Return (annualized) | +12.95%Best | +0.27% |
| Volatility (annualized) | 16.9% | 6.0%Best |
| Max Drawdown | -33.9% | -13.9%Best |
| $10,000 over 5 years | $18,384Best | $10,136 |
| Fund Family | iShares by BlackRock (US) | American Century Investments |
| Category | Equity | Tax Preferred |
| Style | Large Cap Blend | Municipal Bond |
| Inception | May 15, 2000 | Sep 10, 2018 |
Not shown on this pair: Top 10 Weight.
Volatility and max drawdown are measured over the window both funds cover: Sep 12, 2018 to Sep 11, 2026 (8 years).
IVV vs TAXF growth
Month-end closes. Both lines start at 0% in the first month shown, so the gap between them is the difference in growth across that window. The full view is available from the range buttons; it is not the opening view here because over the whole period one of these two funds moves so much further than the other that its line would sit flat on the axis.
IVV vs TAXF Performance
iShares Core S&P 500 ETF (IVV) is an ETF from iShares by BlackRock (US) and American Century Diversified Municipal Bond ETF (TAXF) is an ETF from American Century Investments. Over the past year IVV returned +17.57% while TAXF returned +0.50%. Year to date, IVV is up 12.51% versus a loss of 1.54% for TAXF.
Over three years, IVV compounded at +21.27% per year against +3.12% for TAXF; over five years the annualized figures are +12.95% and +0.27% respectively. Across the full 8-year window we track, IVV has the edge at +13.98% annualized vs +1.60%.
Past performance does not guarantee future results.
Risk: Volatility and Drawdowns
IVV has been the more volatile fund, with annualized monthly volatility of 16.9% compared with 6.0% for TAXF. 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 -33.9% for IVV and -13.9% for TAXF. Drawdown depth is what each fund did in the worst stretch of the window measured above.
The two funds' monthly returns correlate at 0.52. They move together some of the time, and apart the rest.
Fees and Cost Over Time
IVV charges 0.03% per year while TAXF charges 0.25%. On a $10,000 position that is $3 vs $25 annually, a gap of $22 per year that compounds over a long holding period. On income, IVV currently yields 1.06% against 3.88% for TAXF.
Holdings Overlap
We hold position weights for 505 holdings in IVV and 482 in TAXF, totalling 100.0% and 54.3% of the two funds. The two books name no position in common, so there is no overlap percentage to show.
0 positions in common, counted across the 505 positions we hold weights for in IVV and 482 in TAXF, against full books of 508 and 785.
You are not choosing between two funds in isolation.
Whichever of IVV and TAXF you pick has to sit alongside everything else you own. Add the rest and see what the combination actually holds.
Free for up to 10 holdings. No account needed.
Frequently Asked Questions
Which is cheaper, IVV or TAXF?
IVV has an expense ratio of 0.03% while TAXF charges 0.25%. IVV is the cheaper option, by $22 a year on a $10,000 investment.
Which performed better, IVV or TAXF?
Over the past year IVV returned +17.57% vs +0.50% for TAXF, so IVV leads on 1-year performance. Over the longest common window we track (8 years), IVV annualized +13.98% vs +1.60% for TAXF. Past performance does not guarantee future results. This is information, not a recommendation.
Which is riskier, IVV or TAXF?
IVV has been the more volatile fund at 16.9% annualized versus 6.0% for TAXF. Worst drawdown: IVV -33.9% vs TAXF -13.9%.
Should I hold both IVV and TAXF?
IVV and TAXF have a monthly-return correlation of 0.52, so their returns are far enough apart for the mix to behave differently from either one alone. This is information, not a recommendation.
Which pays a higher dividend, IVV or TAXF?
IVV yields 1.06% while TAXF yields 3.88%, so TAXF currently pays the higher dividend yield.
Is TAXF better than IVV?
IVV has a lower expense ratio. IVV led over 1Y, 3Y, 5Y and the full window. Which one suits a particular account depends on what it is for. This is information, not a recommendation.