IVV vs VKQ
iShares Core S&P 500 ETF vs Invesco Municipal Trust
Quick Verdict
IVV has a lower expense ratio. IVV delivered stronger 1-year returns. VKQ offers more diversification with 537 holdings.
Side-by-Side Comparison
| Metric | IVV | VKQ | Winner |
|---|---|---|---|
| Expense Ratio | 0.03% | 1.77% | |
| AUM | $907.0B | $2,913.25 | |
| Dividend Yield | 1.10% | 7.67% | |
| Holdings | 508 | 537 | |
| YTD Return | +12.28% | +4.69% | |
| 1Y Return | +20.94% | +15.17% | |
| 3Y Return (annualized) | +21.81% | +9.32% | |
| 5Y Return (annualized) | +13.05% | -1.11% | |
| Volatility (annualized) | 15.1% | 13.9% | |
| Max Drawdown | -56.5% | -58.5% | |
| Fund Family | iShares by BlackRock (US) | Invesco (US) | |
| Category | Equity | Tax Preferred | |
| Inception | May 15, 2000 | Sep 27, 1991 |
IVV vs VKQ Performance
iShares Core S&P 500 ETF (IVV) is a ETF from iShares by BlackRock (US) and Invesco Municipal Trust (VKQ) is a ETF from Invesco (US). Over the past year IVV returned +20.94% while VKQ returned +15.17%. Year to date, IVV is up 12.28% versus a gain of 4.69% for VKQ.
Over three years, IVV compounded at +21.81% per year against +9.32% for VKQ; over five years the annualized figures are +13.05% and -1.11% respectively. Across the full 26-year window we track, IVV has the edge at +6.98% annualized vs -0.17%. 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 VKQ. 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 -58.5% for VKQ. 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 0.22. They move independently enough that combining them can meaningfully diversify a portfolio.
Fees and Cost Over Time
IVV charges 0.03% per year while VKQ charges 1.77%. On a $10,000 position that is $3 vs $177 annually, a gap of $174 per year that compounds over a long holding period. On income, IVV currently yields 1.10% against 7.67% for VKQ.
Holdings Overlap
IVV and VKQ share 0 holdings out of 781 unique holdings combined, representing a 0.0% weight overlap.
Moderate overlap means holding both could provide meaningful diversification benefits.
Frequently Asked Questions
Which is cheaper, IVV or VKQ?
IVV has an expense ratio of 0.03% while VKQ charges 1.77%. IVV is the cheaper option. On a $10,000 investment, that is $174 per year of difference.
Which performed better, IVV or VKQ?
Over the past year IVV returned +20.94% vs +15.17% for VKQ, so IVV leads on 1-year performance. Over the longest common window we track (26 years), IVV annualized +6.98% vs -0.17% for VKQ. Past performance does not guarantee future results.
Which is riskier, IVV or VKQ?
IVV has been the more volatile fund at 15.1% annualized versus 13.9% for VKQ. Worst drawdown: IVV -56.5% vs VKQ -58.5%.
Should I hold both IVV and VKQ?
IVV and VKQ have a monthly-return correlation of 0.22, so combining them can provide real diversification depending on your allocation goals.
What is the holdings overlap between IVV and VKQ?
IVV and VKQ share 0 common holdings with a 0.0% weight overlap. Combined, they hold 781 unique securities.
Which pays a higher dividend, IVV or VKQ?
IVV yields 1.10% while VKQ yields 7.67%, so VKQ currently pays the higher dividend yield.
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