IVV vs VABS
iShares Core S&P 500 ETF vs Virtus Newfleet ABS/MBS 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 | VABS | Winner |
|---|---|---|---|
| Expense Ratio | 0.03% | 0.39% | |
| AUM | $865.2B | $112M | |
| Dividend Yield | 1.09% | 5.18% | |
| Holdings | 508 | 131 | |
| YTD Return | +13.43% | +2.31% | |
| 1Y Return | +22.61% | +3.43% | |
| 3Y Return (annualized) | +21.47% | +6.31% | |
| 5Y Return (annualized) | +13.26% | +3.34% | |
| Volatility (annualized) | 15.1% | 2.1% | |
| Max Drawdown | -56.5% | -7.1% | |
| Fund Family | iShares by BlackRock (US) | Virtus Investment Partners | |
| Category | Equity | Fixed Income | |
| Inception | May 15, 2000 | Feb 9, 2021 |
IVV vs VABS Performance
iShares Core S&P 500 ETF (IVV) is a ETF from iShares by BlackRock (US) and Virtus Newfleet ABS/MBS ETF (VABS) is a ETF from Virtus Investment Partners. Over the past year IVV returned +22.61% while VABS returned +3.43%. Year to date, IVV is up 13.43% versus a gain of 2.31% for VABS.
Over three years, IVV compounded at +21.47% per year against +6.31% for VABS; over five years the annualized figures are +13.26% and +3.34% respectively. Across the full 6-year window we track, IVV has the edge at +7.03% annualized vs +3.19%. 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 2.1% for VABS. 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 -7.1% for VABS. 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 0.36. They move independently enough that combining them can meaningfully diversify a portfolio.
Fees and Cost Over Time
IVV charges 0.03% per year while VABS charges 0.39%. On a $10,000 position that is $3 vs $39 annually, a gap of $36 per year that compounds over a long holding period. On income, IVV currently yields 1.09% against 5.18% for VABS.
Frequently Asked Questions
Which is cheaper, IVV or VABS?
IVV has an expense ratio of 0.03% while VABS charges 0.39%. IVV is the cheaper option. On a $10,000 investment, that is $36 per year of difference.
Which performed better, IVV or VABS?
Over the past year IVV returned +22.61% vs +3.43% for VABS, so IVV leads on 1-year performance. Over the longest common window we track (6 years), IVV annualized +7.03% vs +3.19% for VABS. Past performance does not guarantee future results.
Which is riskier, IVV or VABS?
IVV has been the more volatile fund at 15.1% annualized versus 2.1% for VABS. Worst drawdown: IVV -56.5% vs VABS -7.1%.
Should I hold both IVV and VABS?
IVV and VABS have a monthly-return correlation of 0.36, so combining them can provide real diversification depending on your allocation goals.
Which pays a higher dividend, IVV or VABS?
IVV yields 1.09% while VABS yields 5.18%, so VABS currently pays the higher dividend yield.
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