IVV vs VLT
iShares Core S&P 500 ETF vs Invesco High Income Trust II
Quick Verdict
IVV has a lower expense ratio. IVV delivered stronger 1-year returns. IVV offers more diversification with 505 holdings.
Side-by-Side Comparison
| Metric | IVV | VLT | Winner |
|---|---|---|---|
| Expense Ratio | 0.03% | 1.95% | |
| AUM | $865.2B | $3,093.5 | |
| Dividend Yield | 1.09% | 10.36% | |
| Holdings | 508 | 270 | |
| YTD Return | +13.43% | -4.01% | |
| 1Y Return | +22.61% | +0.74% | |
| 3Y Return (annualized) | +21.47% | +8.87% | |
| 5Y Return (annualized) | +13.26% | +2.21% | |
| Volatility (annualized) | 15.1% | 19.9% | |
| Max Drawdown | -56.5% | -89.4% | |
| Fund Family | iShares by BlackRock (US) | Invesco (US) | |
| Category | Equity | Fixed Income | |
| Inception | May 15, 2000 | Apr 28, 1989 |
IVV vs VLT Performance
iShares Core S&P 500 ETF (IVV) is a ETF from iShares by BlackRock (US) and Invesco High Income Trust II (VLT) is a ETF from Invesco (US). Over the past year IVV returned +22.61% while VLT returned +0.74%. Year to date, IVV is up 13.43% versus a loss of 4.01% for VLT.
Over three years, IVV compounded at +21.47% per year against +8.87% for VLT; over five years the annualized figures are +13.26% and +2.21% respectively. Across the full 26-year window we track, IVV has the edge at +7.03% annualized vs -2.93%. Past performance does not guarantee future results.
Risk: Volatility and Drawdowns
VLT has been the more volatile fund, with annualized monthly volatility of 19.9% 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 -89.4% for VLT. 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 0.55. They move independently enough that combining them can meaningfully diversify a portfolio.
Fees and Cost Over Time
IVV charges 0.03% per year while VLT charges 1.95%. On a $10,000 position that is $3 vs $195 annually, a gap of $192 per year that compounds over a long holding period. On income, IVV currently yields 1.09% against 10.36% for VLT.
Holdings Overlap
IVV and VLT share 0 holdings out of 703 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 VLT?
IVV has an expense ratio of 0.03% while VLT charges 1.95%. IVV is the cheaper option. On a $10,000 investment, that is $192 per year of difference.
Which performed better, IVV or VLT?
Over the past year IVV returned +22.61% vs +0.74% for VLT, so IVV leads on 1-year performance. Over the longest common window we track (26 years), IVV annualized +7.03% vs -2.93% for VLT. Past performance does not guarantee future results.
Which is riskier, IVV or VLT?
VLT has been the more volatile fund at 19.9% annualized versus 15.1% for IVV. Worst drawdown: IVV -56.5% vs VLT -89.4%.
Should I hold both IVV and VLT?
IVV and VLT have a monthly-return correlation of 0.55, so combining them can provide real diversification depending on your allocation goals.
What is the holdings overlap between IVV and VLT?
IVV and VLT share 0 common holdings with a 0.0% weight overlap. Combined, they hold 703 unique securities.
Which pays a higher dividend, IVV or VLT?
IVV yields 1.09% while VLT yields 10.36%, so VLT currently pays the higher dividend yield.
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