IVV vs VHT
iShares Core S&P 500 ETF vs Vanguard Health Care ETF
Quick Verdict
IVV has a lower expense ratio. VHT delivered stronger 1-year returns. IVV offers more diversification with 505 holdings.
Side-by-Side Comparison
| Metric | IVV | VHT | Winner |
|---|---|---|---|
| Expense Ratio | 0.03% | 0.09% | |
| AUM | $865.2B | $17.8B | |
| Dividend Yield | 1.09% | 1.64% | |
| Holdings | 508 | 414 | |
| YTD Return | +13.80% | +10.47% | |
| 1Y Return | +23.01% | +33.50% | |
| 3Y Return (annualized) | +21.77% | +10.14% | |
| 5Y Return (annualized) | +13.39% | +5.80% | |
| Volatility (annualized) | 15.1% | 13.9% | |
| Max Drawdown | -56.5% | -40.9% | |
| Fund Family | iShares by BlackRock (US) | Vanguard (US) | |
| Category | Equity | Equity | |
| Inception | May 15, 2000 | Jan 26, 2004 |
IVV vs VHT Performance
iShares Core S&P 500 ETF (IVV) is a ETF from iShares by BlackRock (US) and Vanguard Health Care ETF (VHT) is a ETF from Vanguard (US). Over the past year IVV returned +23.01% while VHT returned +33.50%. Year to date, IVV is up 13.80% versus a gain of 10.47% for VHT.
Over three years, IVV compounded at +21.77% per year against +10.14% for VHT; over five years the annualized figures are +13.39% and +5.80% respectively. Across the full 23-year window we track, VHT has the edge at +8.92% annualized vs +7.04%. 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 13.9% for VHT. 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 -40.9% for VHT. 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 0.76. They usually move together, but the gap leaves some room for diversification.
Fees and Cost Over Time
IVV charges 0.03% per year while VHT charges 0.09%. On a $10,000 position that is $3 vs $9 annually, a gap of $6 per year that compounds over a long holding period. On income, IVV currently yields 1.09% against 1.64% for VHT.
Holdings Overlap
IVV and VHT share 60 holdings out of 844 unique holdings combined, representing a 9.0% weight overlap.
Moderate overlap means holding both could provide meaningful diversification benefits.
Frequently Asked Questions
Which is cheaper, IVV or VHT?
IVV has an expense ratio of 0.03% while VHT charges 0.09%. IVV is the cheaper option. On a $10,000 investment, that is $6 per year of difference.
Which performed better, IVV or VHT?
Over the past year IVV returned +23.01% vs +33.50% for VHT, so VHT leads on 1-year performance. Over the longest common window we track (23 years), IVV annualized +7.04% vs +8.92% for VHT. Past performance does not guarantee future results.
Which is riskier, IVV or VHT?
IVV has been the more volatile fund at 15.1% annualized versus 13.9% for VHT. Worst drawdown: IVV -56.5% vs VHT -40.9%.
Should I hold both IVV and VHT?
IVV and VHT have a monthly-return correlation of 0.76, so combining them can provide real diversification depending on your allocation goals.
What is the holdings overlap between IVV and VHT?
IVV and VHT share 60 common holdings with a 9.0% weight overlap. Combined, they hold 844 unique securities.
Which pays a higher dividend, IVV or VHT?
IVV yields 1.09% while VHT yields 1.64%, so VHT currently pays the higher dividend yield.
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