IVV vs VAW
iShares Core S&P 500 ETF vs Vanguard Materials 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 | VAW | Winner |
|---|---|---|---|
| Expense Ratio | 0.03% | 0.09% | |
| AUM | $907.0B | $2.9B | |
| Dividend Yield | 1.10% | 1.39% | |
| Holdings | 508 | 111 | |
| YTD Return | +12.28% | +12.02% | |
| 1Y Return | +20.94% | +17.01% | |
| 3Y Return (annualized) | +21.81% | +11.52% | |
| 5Y Return (annualized) | +13.05% | +6.99% | |
| Volatility (annualized) | 15.1% | 20.4% | |
| Max Drawdown | -56.5% | -63.5% | |
| Fund Family | iShares by BlackRock (US) | Vanguard (US) | |
| Category | Equity | Equity | |
| Inception | May 15, 2000 | Jan 26, 2004 |
IVV vs VAW Performance
iShares Core S&P 500 ETF (IVV) is a ETF from iShares by BlackRock (US) and Vanguard Materials ETF (VAW) is a ETF from Vanguard (US). Over the past year IVV returned +20.94% while VAW returned +17.01%. Year to date, IVV is up 12.28% versus a gain of 12.02% for VAW.
Over three years, IVV compounded at +21.81% per year against +11.52% for VAW; over five years the annualized figures are +13.05% and +6.99% respectively. Across the full 23-year window we track, VAW has the edge at +7.62% annualized vs +6.98%. Past performance does not guarantee future results.
Risk: Volatility and Drawdowns
VAW has been the more volatile fund, with annualized monthly volatility of 20.4% 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 -63.5% for VAW. 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 usually move together, but the gap leaves some room for diversification.
Fees and Cost Over Time
IVV charges 0.03% per year while VAW charges 0.09%. On a $10,000 position that is $3 vs $9 annually, a gap of $6 per year that compounds over a long holding period. On income, IVV currently yields 1.10% against 1.39% for VAW.
Holdings Overlap
IVV and VAW share 25 holdings out of 591 unique holdings combined, representing a 1.7% weight overlap.
Moderate overlap means holding both could provide meaningful diversification benefits.
Frequently Asked Questions
Which is cheaper, IVV or VAW?
IVV has an expense ratio of 0.03% while VAW charges 0.09%. IVV is the cheaper option. On a $10,000 investment, that is $6 per year of difference.
Which performed better, IVV or VAW?
Over the past year IVV returned +20.94% vs +17.01% for VAW, so IVV leads on 1-year performance. Over the longest common window we track (23 years), IVV annualized +6.98% vs +7.62% for VAW. Past performance does not guarantee future results.
Which is riskier, IVV or VAW?
VAW has been the more volatile fund at 20.4% annualized versus 15.1% for IVV. Worst drawdown: IVV -56.5% vs VAW -63.5%.
Should I hold both IVV and VAW?
IVV and VAW 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 VAW?
IVV and VAW share 25 common holdings with a 1.7% weight overlap. Combined, they hold 591 unique securities.
Which pays a higher dividend, IVV or VAW?
IVV yields 1.10% while VAW yields 1.39%, so VAW currently pays the higher dividend yield.
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