IVV vs USMC
iShares Core S&P 500 ETF vs Principal U.S. Mega-Cap ETF
Quick Verdict
IVV has a lower expense ratio. IVV delivered stronger 1-year returns. IVV offers more diversification with 508 holdings.
Side-by-Side Comparison
| Metric | IVV | USMC | Winner |
|---|---|---|---|
| Expense Ratio | 0.03% | 0.12% | |
| AUM | $886.7B | $5.1B | |
| Dividend Yield | 1.10% | 0.76% | |
| Holdings | 508 | 29 | |
| YTD Return | +12.13% | +11.90% | |
| 1Y Return | +20.37% | +18.37% | |
| 3Y Return (annualized) | +20.91% | +20.46% | |
| 5Y Return (annualized) | +12.59% | +14.02% | |
| Volatility (annualized) | 15.1% | 15.4% | |
| Max Drawdown | -56.5% | -30.0% | |
| Fund Family | iShares by BlackRock (US) | Principal Funds | |
| Category | Equity | Equity | |
| Inception | May 15, 2000 | Oct 11, 2017 |
IVV vs USMC Performance
iShares Core S&P 500 ETF (IVV) is a ETF from iShares by BlackRock (US) and Principal U.S. Mega-Cap ETF (USMC) is a ETF from Principal Funds. Over the past year IVV returned +20.37% while USMC returned +18.37%. Year to date, IVV is up 12.13% versus a gain of 11.90% for USMC.
Over three years, IVV compounded at +20.91% per year against +20.46% for USMC; over five years the annualized figures are +12.59% and +14.02% respectively. Across the full 9-year window we track, USMC has the edge at +14.25% annualized vs +6.97%. Past performance does not guarantee future results.
Risk: Volatility and Drawdowns
USMC has been the more volatile fund, with annualized monthly volatility of 15.4% 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 -30.0% for USMC. 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 0.97. 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 USMC charges 0.12%. On a $10,000 position that is $3 vs $12 annually, a gap of $9 per year that compounds over a long holding period. On income, IVV currently yields 1.10% against 0.76% for USMC.
Holdings Overlap
IVV and USMC share 26 holdings out of 506 unique holdings combined, representing a 48.6% weight overlap.
Moderate overlap means holding both could provide meaningful diversification benefits.
Frequently Asked Questions
Which is cheaper, IVV or USMC?
IVV has an expense ratio of 0.03% while USMC charges 0.12%. IVV is the cheaper option. On a $10,000 investment, that is $9 per year of difference.
Which performed better, IVV or USMC?
Over the past year IVV returned +20.37% vs +18.37% for USMC, so IVV leads on 1-year performance. Over the longest common window we track (9 years), IVV annualized +6.97% vs +14.25% for USMC. Past performance does not guarantee future results.
Which is riskier, IVV or USMC?
USMC has been the more volatile fund at 15.4% annualized versus 15.1% for IVV. Worst drawdown: IVV -56.5% vs USMC -30.0%.
Should I hold both IVV and USMC?
IVV and USMC have a monthly-return correlation of 0.97, so they move almost identically. Holding both adds little diversification - most investors pick one, usually on fees or the specific index tracked.
What is the holdings overlap between IVV and USMC?
IVV and USMC share 26 common holdings with a 48.6% weight overlap. Combined, they hold 506 unique securities.
Which pays a higher dividend, IVV or USMC?
IVV yields 1.10% while USMC yields 0.76%, so IVV currently pays the higher dividend yield.
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