IVV vs VMLUX
iShares Core S&P 500 ETF vs Vanguard Limited Term Tax-Exempt Fund admiral class
Quick Verdict
IVV has a lower expense ratio. IVV delivered stronger 1-year returns. VMLUX offers more diversification with 915 holdings.
Side-by-Side Comparison
| Metric | IVV | VMLUX | Winner |
|---|---|---|---|
| Expense Ratio | 0.03% | 0.09% | |
| AUM | $865.2B | $34.1B | |
| Dividend Yield | 1.09% | 2.89% | |
| Holdings | 508 | 7,110 | |
| YTD Return | +13.43% | -0.64% | |
| 1Y Return | +22.61% | -0.36% | |
| 3Y Return (annualized) | +21.47% | +0.77% | |
| 5Y Return (annualized) | +13.26% | -0.58% | |
| Volatility (annualized) | 15.1% | 2.8% | |
| Max Drawdown | -56.5% | -8.5% | |
| Fund Family | iShares by BlackRock (US) | Vanguard (US) | |
| Category | Equity | Tax Preferred | |
| Inception | May 15, 2000 | Feb 12, 2001 |
IVV vs VMLUX Performance
iShares Core S&P 500 ETF (IVV) is a ETF from iShares by BlackRock (US) and Vanguard Limited Term Tax-Exempt Fund admiral class (VMLUX) is a mutual fund from Vanguard (US). Over the past year IVV returned +22.61% while VMLUX returned -0.36%. Year to date, IVV is up 13.43% versus a loss of 0.64% for VMLUX.
Over three years, IVV compounded at +21.47% per year against +0.77% for VMLUX; over five years the annualized figures are +13.26% and -0.58% respectively. Across the full 5-year window we track, IVV has the edge at +7.03% annualized vs -0.58%. 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 2.8% for VMLUX. 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 -8.5% for VMLUX. 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 0.63. They move independently enough that combining them can meaningfully diversify a portfolio.
Fees and Cost Over Time
IVV charges 0.03% per year while VMLUX 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 2.89% for VMLUX.
Holdings Overlap
IVV and VMLUX share 0 holdings out of 1420 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 VMLUX?
IVV has an expense ratio of 0.03% while VMLUX 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 VMLUX?
Over the past year IVV returned +22.61% vs -0.36% for VMLUX, so IVV leads on 1-year performance. Over the longest common window we track (5 years), IVV annualized +7.03% vs -0.58% for VMLUX. Past performance does not guarantee future results.
Which is riskier, IVV or VMLUX?
IVV has been the more volatile fund at 15.1% annualized versus 2.8% for VMLUX. Worst drawdown: IVV -56.5% vs VMLUX -8.5%.
Should I hold both IVV and VMLUX?
IVV and VMLUX have a monthly-return correlation of 0.63, so combining them can provide real diversification depending on your allocation goals.
What is the holdings overlap between IVV and VMLUX?
IVV and VMLUX share 0 common holdings with a 0.0% weight overlap. Combined, they hold 1420 unique securities.
Which pays a higher dividend, IVV or VMLUX?
IVV yields 1.09% while VMLUX yields 2.89%, so VMLUX currently pays the higher dividend yield.
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