IVV vs VNQ
iShares Core S&P 500 ETF vs Vanguard Real Estate ETF
Which is better, IVV or VNQ?
Large Cap Blend against Mid Cap Blend.
IVV has a lower expense ratio. IVV led over 3Y, 5Y and the full window, VNQ over 1Y.
MarketXLS is not an investment adviser. This comparison is generated automatically from market data and is for information only. A Best mark means the better reading on that one measure, not a recommendation to buy.
Side-by-Side Comparison
| Metric | IVV | VNQ |
|---|---|---|
| Expense Ratio | 0.03%Best | 0.13% |
| AUM | $850.0B | $35.9B |
| Dividend Yield | 1.09% | 3.63% |
| Holdings | 1,018 | 144 |
| YTD Return | +10.70% | +12.79%Best |
| 1Y Return | +11.31% | +11.72%Best |
| 3Y Return (annualized) | +21.04%Best | +13.40% |
| 5Y Return (annualized) | +11.65%Best | +1.48% |
| Volatility (annualized) | 14.8%Best | 21.4% |
| Max Drawdown | -56.5%Best | -75.8% |
| $10,000 over 5 years | $17,350Best | $10,762 |
| Fund Family | iShares by BlackRock (US) | Vanguard (US) |
| Category | Equity | Equity |
| Style | Large Cap Blend | Mid Cap Blend |
| Inception | May 15, 2000 | Sep 23, 2004 |
Not shown on this pair: Top 10 Weight.
Volatility and max drawdown are measured over the window both funds cover: Sep 29, 2004 to Nov 10, 2026 (22.1 years).
IVV vs VNQ growth
Month-end closes. Both lines start at 0% in the first month shown, so the gap between them is the difference in growth across that window. The full view covers the 22.1 years both funds cover.
IVV vs VNQ Performance
iShares Core S&P 500 ETF (IVV) is an ETF from iShares by BlackRock (US) and Vanguard Real Estate ETF (VNQ) is an ETF from Vanguard (US). Over the past year IVV returned +11.31% while VNQ returned +11.72%. Year to date, IVV is up 10.70% versus a gain of 12.79% for VNQ.
Over three years, IVV compounded at +21.04% per year against +13.40% for VNQ; over five years the annualized figures are +11.65% and +1.48% respectively. Across the full 22-year window we track, IVV has the edge at +9.40% annualized vs +4.06%.
Past performance does not guarantee future results.
Risk: Volatility and Drawdowns
VNQ has been the more volatile fund, with annualized monthly volatility of 21.4% compared with 14.8% 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 -75.8% for VNQ. Drawdown depth is what each fund did in the worst stretch of the window measured above.
The two funds' monthly returns correlate at 0.74. They usually move together, but the gap leaves some room for diversification.
Fees and Cost Over Time
IVV charges 0.03% per year while VNQ charges 0.13%. On a $10,000 position that is $3 vs $13 annually, a gap of $10 per year that compounds over a long holding period. On income, IVV currently yields 1.09% against 3.63% for VNQ.
Holdings Overlap
At least 1.7% of IVV's money is in holdings VNQ also owns.
Stated as a floor: for VNQ, our book for it covers 84.6% of that fund, so a holding it does not list is one we cannot count as shared. The real figure is this or higher.
IVV and VNQ share little of their money.
30 positions in common, counted across the 505 positions we hold weights for in IVV and 139 in VNQ, against full books of 1,018 and 144.
Top Shared Holdings
| Stock | Weight in IVV | Weight in VNQ | Difference |
|---|---|---|---|
| WELLWelltower Inc. | 0.25% | 9.12% | 8.87% |
| PLDPrologis Inc | 0.19% | 6.86% | 6.67% |
| EQIXEquinix, Inc. | 0.15% | 5.65% | 5.50% |
| AMTAmerican Tower Corporation | 0.13% | 4.32% | 4.19% |
| SPGSimon Property Group Inc | 0.10% | 3.69% | 3.59% |
| DLRDigital Realty Trust Inc. | 0.09% | 3.68% | 3.59% |
| ORealty Income Corp. | 0.08% | 2.85% | 2.77% |
| PSAPublic Storage | 0.07% | 2.69% | 2.62% |
| EQRVivmark Residential | 0.07% | 2.46% | 2.39% |
| VTRVentas, Inc. | 0.06% | 2.34% | 2.28% |
You are not choosing between two funds in isolation.
Whichever of IVV and VNQ you pick has to sit alongside everything else you own. Add the rest and see what the combination actually holds.
Free for up to 10 holdings. No account needed.
Frequently Asked Questions
Which is cheaper, IVV or VNQ?
IVV has an expense ratio of 0.03% while VNQ charges 0.13%. IVV is the cheaper option, by $10 a year on a $10,000 investment.
Which performed better, IVV or VNQ?
Over the past year IVV returned +11.31% vs +11.72% for VNQ, so VNQ leads on 1-year performance. Over the longest common window we track (22 years), IVV annualized +9.40% vs +4.06% for VNQ. Past performance does not guarantee future results. This is information, not a recommendation.
Which is riskier, IVV or VNQ?
VNQ has been the more volatile fund at 21.4% annualized versus 14.8% for IVV. Worst drawdown: IVV -56.5% vs VNQ -75.8%.
Should I hold both IVV and VNQ?
IVV and VNQ have a monthly-return correlation of 0.74, so their returns are far enough apart for the mix to behave differently from either one alone. This is information, not a recommendation.
What is the holdings overlap between IVV and VNQ?
At least 1.7% of IVV's money is in holdings VNQ also owns. Our book for VNQ is partial, so the real figure is this or higher. They hold 30 positions in common, counted across the 505 positions we hold weights for in IVV and 139 in VNQ.
Which pays a higher dividend, IVV or VNQ?
IVV yields 1.09% while VNQ yields 3.63%, so VNQ currently pays the higher dividend yield.
Is VNQ better than IVV?
IVV has a lower expense ratio. IVV led over 3Y, 5Y and the full window, VNQ over 1Y. Which one suits a particular account depends on what it is for. This is information, not a recommendation.