IVV vs VFMF
iShares Core S&P 500 ETF vs Vanguard US Multifactor ETF
Quick Verdict
IVV has a lower expense ratio. VFMF delivered stronger 1-year returns. VFMF offers more diversification with 593 holdings.
Side-by-Side Comparison
| Metric | IVV | VFMF | Winner |
|---|---|---|---|
| Expense Ratio | 0.03% | 0.18% | |
| AUM | $865.2B | $703M | |
| Dividend Yield | 1.09% | 1.75% | |
| Holdings | 508 | 597 | |
| YTD Return | +13.43% | +22.07% | |
| 1Y Return | +22.61% | +36.87% | |
| 3Y Return (annualized) | +21.47% | +21.43% | |
| 5Y Return (annualized) | +13.26% | +14.25% | |
| Volatility (annualized) | 15.1% | 18.6% | |
| Max Drawdown | -56.5% | -41.3% | |
| Fund Family | iShares by BlackRock (US) | Vanguard (US) | |
| Category | Equity | Equity | |
| Inception | May 15, 2000 | Feb 13, 2018 |
IVV vs VFMF Performance
iShares Core S&P 500 ETF (IVV) is a ETF from iShares by BlackRock (US) and Vanguard US Multifactor ETF (VFMF) is a ETF from Vanguard (US). Over the past year IVV returned +22.61% while VFMF returned +36.87%. Year to date, IVV is up 13.43% versus a gain of 22.07% for VFMF.
Over three years, IVV compounded at +21.47% per year against +21.43% for VFMF; over five years the annualized figures are +13.26% and +14.25% respectively. Across the full 9-year window we track, VFMF has the edge at +12.67% annualized vs +7.03%. Past performance does not guarantee future results.
Risk: Volatility and Drawdowns
VFMF has been the more volatile fund, with annualized monthly volatility of 18.6% 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 -41.3% for VFMF. 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 0.89. They usually move together, but the gap leaves some room for diversification.
Fees and Cost Over Time
IVV charges 0.03% per year while VFMF charges 0.18%. On a $10,000 position that is $3 vs $18 annually, a gap of $15 per year that compounds over a long holding period. On income, IVV currently yields 1.09% against 1.75% for VFMF.
Holdings Overlap
IVV and VFMF share 140 holdings out of 958 unique holdings combined, representing a 20.4% weight overlap.
Moderate overlap means holding both could provide meaningful diversification benefits.
Frequently Asked Questions
Which is cheaper, IVV or VFMF?
IVV has an expense ratio of 0.03% while VFMF charges 0.18%. IVV is the cheaper option. On a $10,000 investment, that is $15 per year of difference.
Which performed better, IVV or VFMF?
Over the past year IVV returned +22.61% vs +36.87% for VFMF, so VFMF leads on 1-year performance. Over the longest common window we track (9 years), IVV annualized +7.03% vs +12.67% for VFMF. Past performance does not guarantee future results.
Which is riskier, IVV or VFMF?
VFMF has been the more volatile fund at 18.6% annualized versus 15.1% for IVV. Worst drawdown: IVV -56.5% vs VFMF -41.3%.
Should I hold both IVV and VFMF?
IVV and VFMF have a monthly-return correlation of 0.89, so combining them can provide real diversification depending on your allocation goals.
What is the holdings overlap between IVV and VFMF?
IVV and VFMF share 140 common holdings with a 20.4% weight overlap. Combined, they hold 958 unique securities.
Which pays a higher dividend, IVV or VFMF?
IVV yields 1.09% while VFMF yields 1.75%, so VFMF currently pays the higher dividend yield.
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