IVV vs TZA
iShares Core S&P 500 ETF vs Direxion Daily Small Cap Bear 3X 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 | TZA | Winner |
|---|---|---|---|
| Expense Ratio | 0.03% | 0.99% | |
| AUM | $865.2B | $232M | |
| Dividend Yield | 1.09% | 51.31% | |
| Holdings | 508 | 11 | |
| YTD Return | +13.72% | -48.00% | |
| 1Y Return | +21.64% | -62.29% | |
| 3Y Return (annualized) | +21.55% | -45.27% | |
| 5Y Return (annualized) | +13.27% | -32.63% | |
| Volatility (annualized) | 15.1% | 55.9% | |
| Max Drawdown | -56.5% | -100.0% | |
| Fund Family | iShares by BlackRock (US) | Direxion Shares ETF Trust | |
| Category | Equity | Alternative | |
| Inception | May 15, 2000 | Nov 5, 2008 |
IVV vs TZA Performance
iShares Core S&P 500 ETF (IVV) is a ETF from iShares by BlackRock (US) and Direxion Daily Small Cap Bear 3X ETF (TZA) is a ETF from Direxion Shares ETF Trust. Over the past year IVV returned +21.64% while TZA returned -62.29%. Year to date, IVV is up 13.72% versus a loss of 48.00% for TZA.
Over three years, IVV compounded at +21.55% per year against -45.27% for TZA; over five years the annualized figures are +13.27% and -32.63% respectively. Across the full 18-year window we track, IVV has the edge at +7.04% annualized vs -48.97%. Past performance does not guarantee future results.
Risk: Volatility and Drawdowns
TZA has been the more volatile fund, with annualized monthly volatility of 55.9% 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 -100.0% for TZA. 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 -0.85. They move independently enough that combining them can meaningfully diversify a portfolio.
Fees and Cost Over Time
IVV charges 0.03% per year while TZA charges 0.99%. On a $10,000 position that is $3 vs $99 annually, a gap of $96 per year that compounds over a long holding period. On income, IVV currently yields 1.09% against 51.31% for TZA.
Holdings Overlap
IVV and TZA share 0 holdings out of 509 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 TZA?
IVV has an expense ratio of 0.03% while TZA charges 0.99%. IVV is the cheaper option. On a $10,000 investment, that is $96 per year of difference.
Which performed better, IVV or TZA?
Over the past year IVV returned +21.64% vs -62.29% for TZA, so IVV leads on 1-year performance. Over the longest common window we track (18 years), IVV annualized +7.04% vs -48.97% for TZA. Past performance does not guarantee future results.
Which is riskier, IVV or TZA?
TZA has been the more volatile fund at 55.9% annualized versus 15.1% for IVV. Worst drawdown: IVV -56.5% vs TZA -100.0%.
Should I hold both IVV and TZA?
IVV and TZA have a monthly-return correlation of -0.85, so combining them can provide real diversification depending on your allocation goals.
What is the holdings overlap between IVV and TZA?
IVV and TZA share 0 common holdings with a 0.0% weight overlap. Combined, they hold 509 unique securities.
Which pays a higher dividend, IVV or TZA?
IVV yields 1.09% while TZA yields 51.31%, so TZA currently pays the higher dividend yield.
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