IVV vs VCEB

Quick Verdict

IVV has a lower expense ratio. IVV delivered stronger 1-year returns. VCEB offers more diversification with 2566 holdings.

Lower Fees: IVVHigher Returns: IVVMore Diversified: VCEB

Side-by-Side Comparison

MetricIVVVCEBWinner
Expense Ratio0.03%0.12%
AUM$865.2B$1.2B
Dividend Yield1.09%4.63%
Holdings5082,754
YTD Return+13.80%-3.51%
1Y Return+23.01%-1.34%
3Y Return (annualized)+21.77%+4.00%
5Y Return (annualized)+13.39%-0.54%
Volatility (annualized)15.1%7.4%
Max Drawdown-56.5%-21.7%
Fund FamilyiShares by BlackRock (US)Vanguard (US)
CategoryEquityFixed Income
InceptionMay 15, 2000Sep 22, 2020

IVV vs VCEB Performance

iShares Core S&P 500 ETF (IVV) is a ETF from iShares by BlackRock (US) and Vanguard ESG US Corporate Bond ETF (VCEB) is a ETF from Vanguard (US). Over the past year IVV returned +23.01% while VCEB returned -1.34%. Year to date, IVV is up 13.80% versus a loss of 3.51% for VCEB.

Over three years, IVV compounded at +21.77% per year against +4.00% for VCEB; over five years the annualized figures are +13.39% and -0.54% respectively. Across the full 6-year window we track, IVV has the edge at +7.04% annualized vs -0.38%. 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 7.4% for VCEB. 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 -21.7% for VCEB. 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 0.69. They move independently enough that combining them can meaningfully diversify a portfolio.

Fees and Cost Over Time

IVV charges 0.03% per year while VCEB 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 1.09% against 4.63% for VCEB.

Holdings Overlap

0.0%overlap

IVV and VCEB share 2 holdings out of 3069 unique holdings combined, representing a 0.0% weight overlap.

Moderate overlap means holding both could provide meaningful diversification benefits.

Top Shared Holdings

StockWeight in IVVWeight in VCEBDifference
AON0.12%0.01%0.11%
KDP0.06%0.01%0.05%

Frequently Asked Questions

Which is cheaper, IVV or VCEB?

IVV has an expense ratio of 0.03% while VCEB 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 VCEB?

Over the past year IVV returned +23.01% vs -1.34% for VCEB, so IVV leads on 1-year performance. Over the longest common window we track (6 years), IVV annualized +7.04% vs -0.38% for VCEB. Past performance does not guarantee future results.

Which is riskier, IVV or VCEB?

IVV has been the more volatile fund at 15.1% annualized versus 7.4% for VCEB. Worst drawdown: IVV -56.5% vs VCEB -21.7%.

Should I hold both IVV and VCEB?

IVV and VCEB have a monthly-return correlation of 0.69, so combining them can provide real diversification depending on your allocation goals.

What is the holdings overlap between IVV and VCEB?

IVV and VCEB share 2 common holdings with a 0.0% weight overlap. Combined, they hold 3069 unique securities.

Which pays a higher dividend, IVV or VCEB?

IVV yields 1.09% while VCEB yields 4.63%, so VCEB currently pays the higher dividend yield.

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