IVV vs VCIT
iShares Core S&P 500 ETF vs Vanguard Intermediate Term Corporate Bond ETF
Quick Verdict
IVV delivered stronger 1-year returns. VCIT offers more diversification with 2019 holdings.
Side-by-Side Comparison
| Metric | IVV | VCIT | Winner |
|---|---|---|---|
| Expense Ratio | 0.03% | 0.03% | |
| AUM | $865.2B | $67.3B | |
| Dividend Yield | 1.09% | 4.77% | |
| Holdings | 508 | 2,253 | |
| YTD Return | +13.80% | -0.86% | |
| 1Y Return | +23.01% | +2.08% | |
| 3Y Return (annualized) | +21.77% | +5.97% | |
| 5Y Return (annualized) | +13.39% | +0.79% | |
| Volatility (annualized) | 15.1% | 6.0% | |
| Max Drawdown | -56.5% | -20.7% | |
| Fund Family | iShares by BlackRock (US) | Vanguard (US) | |
| Category | Equity | Fixed Income | |
| Inception | May 15, 2000 | Nov 19, 2009 |
IVV vs VCIT Performance
iShares Core S&P 500 ETF (IVV) is a ETF from iShares by BlackRock (US) and Vanguard Intermediate Term Corporate Bond ETF (VCIT) is a ETF from Vanguard (US). Over the past year IVV returned +23.01% while VCIT returned +2.08%. Year to date, IVV is up 13.80% versus a loss of 0.86% for VCIT.
Over three years, IVV compounded at +21.77% per year against +5.97% for VCIT; over five years the annualized figures are +13.39% and +0.79% respectively. Across the full 17-year window we track, IVV has the edge at +7.04% annualized vs +1.72%. 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 6.0% for VCIT. 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 -20.7% for VCIT. 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 0.46. They move independently enough that combining them can meaningfully diversify a portfolio.
Fees and Cost Over Time
IVV charges 0.03% per year while VCIT charges 0.03%. On a $10,000 position that is $3 vs $3 annually. On income, IVV currently yields 1.09% against 4.77% for VCIT.
Holdings Overlap
IVV and VCIT share 3 holdings out of 2521 unique holdings combined, representing a 0.2% weight overlap.
Moderate overlap means holding both could provide meaningful diversification benefits.
Frequently Asked Questions
Which is cheaper, IVV or VCIT?
IVV has an expense ratio of 0.03% while VCIT charges 0.03%. They cost the same. On a $10,000 investment, that is $0 per year of difference.
Which performed better, IVV or VCIT?
Over the past year IVV returned +23.01% vs +2.08% for VCIT, so IVV leads on 1-year performance. Over the longest common window we track (17 years), IVV annualized +7.04% vs +1.72% for VCIT. Past performance does not guarantee future results.
Which is riskier, IVV or VCIT?
IVV has been the more volatile fund at 15.1% annualized versus 6.0% for VCIT. Worst drawdown: IVV -56.5% vs VCIT -20.7%.
Should I hold both IVV and VCIT?
IVV and VCIT have a monthly-return correlation of 0.46, so combining them can provide real diversification depending on your allocation goals.
What is the holdings overlap between IVV and VCIT?
IVV and VCIT share 3 common holdings with a 0.2% weight overlap. Combined, they hold 2521 unique securities.
Which pays a higher dividend, IVV or VCIT?
IVV yields 1.09% while VCIT yields 4.77%, so VCIT currently pays the higher dividend yield.
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