IVV vs TEI
iShares Core S&P 500 ETF vs Templeton Emerging Markets Income Fund Inc.
Quick Verdict
IVV has a lower expense ratio. TEI delivered stronger 1-year returns. IVV offers more diversification with 505 holdings.
Side-by-Side Comparison
| Metric | IVV | TEI | Winner |
|---|---|---|---|
| Expense Ratio | 0.03% | 1.14% | |
| AUM | $865.2B | $2,711.9 | |
| Dividend Yield | 1.09% | 12.41% | |
| Holdings | 508 | 151 | |
| YTD Return | +13.43% | +10.35% | |
| 1Y Return | +22.61% | +28.99% | |
| 3Y Return (annualized) | +21.47% | +23.68% | |
| 5Y Return (annualized) | +13.26% | +8.67% | |
| Volatility (annualized) | 15.1% | 17.9% | |
| Max Drawdown | -56.5% | -71.1% | |
| Fund Family | iShares by BlackRock (US) | Franklin Templeton Investments (US) | |
| Category | Equity | Fixed Income | |
| Inception | May 15, 2000 | Sep 23, 1993 |
IVV vs TEI Performance
iShares Core S&P 500 ETF (IVV) is a ETF from iShares by BlackRock (US) and Templeton Emerging Markets Income Fund Inc. (TEI) is a ETF from Franklin Templeton Investments (US). Over the past year IVV returned +22.61% while TEI returned +28.99%. Year to date, IVV is up 13.43% versus a gain of 10.35% for TEI.
Over three years, IVV compounded at +21.47% per year against +23.68% for TEI; over five years the annualized figures are +13.26% and +8.67% respectively. Across the full 26-year window we track, IVV has the edge at +7.03% annualized vs +0.40%. Past performance does not guarantee future results.
Risk: Volatility and Drawdowns
TEI has been the more volatile fund, with annualized monthly volatility of 17.9% compared with 15.1% for IVV. 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 -71.1% for TEI. 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 0.55. They move independently enough that combining them can meaningfully diversify a portfolio.
Fees and Cost Over Time
IVV charges 0.03% per year while TEI charges 1.14%. On a $10,000 position that is $3 vs $114 annually, a gap of $111 per year that compounds over a long holding period. On income, IVV currently yields 1.09% against 12.41% for TEI.
Holdings Overlap
IVV and TEI share 0 holdings out of 525 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 TEI?
IVV has an expense ratio of 0.03% while TEI charges 1.14%. IVV is the cheaper option. On a $10,000 investment, that is $111 per year of difference.
Which performed better, IVV or TEI?
Over the past year IVV returned +22.61% vs +28.99% for TEI, so TEI leads on 1-year performance. Over the longest common window we track (26 years), IVV annualized +7.03% vs +0.40% for TEI. Past performance does not guarantee future results.
Which is riskier, IVV or TEI?
TEI has been the more volatile fund at 17.9% annualized versus 15.1% for IVV. Worst drawdown: IVV -56.5% vs TEI -71.1%.
Should I hold both IVV and TEI?
IVV and TEI have a monthly-return correlation of 0.55, so combining them can provide real diversification depending on your allocation goals.
What is the holdings overlap between IVV and TEI?
IVV and TEI share 0 common holdings with a 0.0% weight overlap. Combined, they hold 525 unique securities.
Which pays a higher dividend, IVV or TEI?
IVV yields 1.09% while TEI yields 12.41%, so TEI currently pays the higher dividend yield.
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