IVV vs USEP

Quick Verdict

IVV has a lower expense ratio. IVV delivered stronger 1-year returns. IVV offers more diversification with 505 holdings.

Lower Fees: IVVHigher Returns: IVVMore Diversified: IVV

Side-by-Side Comparison

MetricIVVUSEPWinner
Expense Ratio0.03%0.79%
AUM$865.2B$148M
Dividend Yield1.09%0.00%
Holdings5086
YTD Return+13.80%+6.49%
1Y Return+23.70%+11.63%
3Y Return (annualized)+21.49%+12.22%
5Y Return (annualized)+13.43%+8.27%
Volatility (annualized)15.1%7.1%
Max Drawdown-56.5%-13.4%
Fund FamilyiShares by BlackRock (US)Innovator ETFs Trust
CategoryEquityAlternative
InceptionMay 15, 2000Aug 30, 2019

IVV vs USEP Performance

iShares Core S&P 500 ETF (IVV) is a ETF from iShares by BlackRock (US) and Innovator U.S. Equity Ultra Buffer ETF - September (USEP) is a ETF from Innovator ETFs Trust. Over the past year IVV returned +23.70% while USEP returned +11.63%. Year to date, IVV is up 13.80% versus a gain of 6.49% for USEP.

Over three years, IVV compounded at +21.49% per year against +12.22% for USEP; over five years the annualized figures are +13.43% and +8.27% respectively. Across the full 7-year window we track, USEP has the edge at +8.08% annualized vs +7.05%. Past performance does not guarantee future results.

Risk: Volatility and Drawdowns

IVV has been the more volatile fund, with annualized monthly volatility of 15.1% compared with 7.1% for USEP. 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 -13.4% for USEP. 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 0.94. They move almost in lockstep, so holding both mostly duplicates the same exposure.

Fees and Cost Over Time

IVV charges 0.03% per year while USEP charges 0.79%. On a $10,000 position that is $3 vs $79 annually, a gap of $76 per year that compounds over a long holding period. On income, IVV currently yields 1.09% against 0.00% for USEP.

Frequently Asked Questions

Which is cheaper, IVV or USEP?

IVV has an expense ratio of 0.03% while USEP charges 0.79%. IVV is the cheaper option. On a $10,000 investment, that is $76 per year of difference.

Which performed better, IVV or USEP?

Over the past year IVV returned +23.70% vs +11.63% for USEP, so IVV leads on 1-year performance. Over the longest common window we track (7 years), IVV annualized +7.05% vs +8.08% for USEP. Past performance does not guarantee future results.

Which is riskier, IVV or USEP?

IVV has been the more volatile fund at 15.1% annualized versus 7.1% for USEP. Worst drawdown: IVV -56.5% vs USEP -13.4%.

Should I hold both IVV and USEP?

IVV and USEP have a monthly-return correlation of 0.94, so they move almost identically. Holding both adds little diversification - most investors pick one, usually on fees or the specific index tracked.

Which pays a higher dividend, IVV or USEP?

IVV yields 1.09% while USEP yields 0.00%, so IVV currently pays the higher dividend yield.

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