IVV vs VCEB
iShares Core S&P 500 ETF vs Vanguard ESG US Corporate Bond ETF
Quick Verdict
IVV has a lower expense ratio. IVV delivered stronger 1-year returns. VCEB offers more diversification with 2566 holdings.
Side-by-Side Comparison
| Metric | IVV | VCEB | Winner |
|---|---|---|---|
| Expense Ratio | 0.03% | 0.12% | |
| AUM | $865.2B | $1.2B | |
| Dividend Yield | 1.09% | 4.63% | |
| Holdings | 508 | 2,754 | |
| 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 Family | iShares by BlackRock (US) | Vanguard (US) | |
| Category | Equity | Fixed Income | |
| Inception | May 15, 2000 | Sep 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
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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