IVV vs VEU
iShares Core S&P 500 ETF vs Vanguard FTSE All World Ex US ETF
Quick Verdict
IVV has a lower expense ratio. VEU delivered stronger 1-year returns. VEU offers more diversification with 3,928 holdings.
Side-by-Side Comparison
| Metric | IVV | VEU | Winner |
|---|---|---|---|
| Expense Ratio | 0.03% | 0.04% | |
| AUM | $907.0B | $68.4B | |
| Dividend Yield | 1.10% | 2.55% | |
| Holdings | 508 | 3,928 | |
| YTD Return | +12.39% | +14.79% | |
| 1Y Return | +20.24% | +25.82% | |
| 3Y Return (annualized) | +21.78% | +20.69% | |
| 5Y Return (annualized) | +12.84% | +9.60% | |
| Volatility (annualized) | 15.1% | 17.7% | |
| Max Drawdown | -56.5% | -62.8% | |
| Fund Family | iShares by BlackRock (US) | Vanguard (US) | |
| Category | Equity | Equity | |
| Inception | May 15, 2000 | Mar 2, 2007 |
IVV vs VEU Performance
iShares Core S&P 500 ETF (IVV) is a ETF from iShares by BlackRock (US) and Vanguard FTSE All World Ex US ETF (VEU) is a ETF from Vanguard (US). Over the past year IVV returned +20.24% while VEU returned +25.82%. Year to date, IVV is up 12.39% versus a gain of 14.79% for VEU.
Over three years, IVV compounded at +21.78% per year against +20.69% for VEU; over five years the annualized figures are +12.84% and +9.60% respectively. Across the full 20-year window we track, IVV has the edge at +6.98% annualized vs +3.56%. Past performance does not guarantee future results.
Risk: Volatility and Drawdowns
VEU has been the more volatile fund, with annualized monthly volatility of 17.7% 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 -62.8% for VEU. 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 0.86. They usually move together, but the gap leaves some room for diversification.
Fees and Cost Over Time
IVV charges 0.03% per year while VEU charges 0.04%. On a $10,000 position that is $3 vs $4 annually, a gap of $1 per year that compounds over a long holding period. On income, IVV currently yields 1.10% against 2.55% for VEU.
Holdings Overlap
IVV and VEU share 6 holdings out of 3320 unique holdings combined, representing a 0.3% weight overlap.
Moderate overlap means holding both could provide meaningful diversification benefits.
Frequently Asked Questions
Which is cheaper, IVV or VEU?
IVV has an expense ratio of 0.03% while VEU charges 0.04%. IVV is the cheaper option. On a $10,000 investment, that is $1 per year of difference.
Which performed better, IVV or VEU?
Over the past year IVV returned +20.24% vs +25.82% for VEU, so VEU leads on 1-year performance. Over the longest common window we track (20 years), IVV annualized +6.98% vs +3.56% for VEU. Past performance does not guarantee future results.
Which is riskier, IVV or VEU?
VEU has been the more volatile fund at 17.7% annualized versus 15.1% for IVV. Worst drawdown: IVV -56.5% vs VEU -62.8%.
Should I hold both IVV and VEU?
IVV and VEU have a monthly-return correlation of 0.86, so combining them can provide real diversification depending on your allocation goals.
What is the holdings overlap between IVV and VEU?
IVV and VEU share 6 common holdings with a 0.3% weight overlap. Combined, they hold 3320 unique securities.
Which pays a higher dividend, IVV or VEU?
IVV yields 1.10% while VEU yields 2.55%, so VEU currently pays the higher dividend yield.
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