IVV vs VRP
iShares Core S&P 500 ETF vs Invesco Variable Rate Preferred ETF
Which is better, IVV or VRP?
Large Cap Blend against Preferred Stock.
IVV has a lower expense ratio. IVV led over 1Y, 3Y, 5Y and the full window.
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 | VRP |
|---|---|---|
| Expense Ratio | 0.03%Best | 0.50% |
| AUM | $876.4B | $3.0B |
| Dividend Yield | 1.06% | 6.09% |
| Holdings | 508 | 343 |
| YTD Return | +12.39%Best | +1.93% |
| 1Y Return | +16.61%Best | +2.72% |
| 3Y Return (annualized) | +21.38%Best | +8.41% |
| 5Y Return (annualized) | +13.51%Best | +4.03% |
| Volatility (annualized) | 14.8% | 7.4%Best |
| Max Drawdown | -33.9%Best | -46.2% |
| $10,000 over 5 years | $18,844Best | $12,184 |
| Fund Family | iShares by BlackRock (US) | Invesco (US) |
| Category | Equity | Allocation/Balanced |
| Style | Large Cap Blend | Preferred Stock |
| Inception | May 15, 2000 | May 1, 2014 |
Not shown on this pair: Top 10 Weight.
Volatility and max drawdown are measured over the window both funds cover: May 1, 2014 to Sep 18, 2026 (12.4 years).
IVV vs VRP 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 12.4 years both funds cover.
IVV vs VRP Performance
iShares Core S&P 500 ETF (IVV) is an ETF from iShares by BlackRock (US) and Invesco Variable Rate Preferred ETF (VRP) is an ETF from Invesco (US). Over the past year IVV returned +16.61% while VRP returned +2.72%. Year to date, IVV is up 12.39% versus a gain of 1.93% for VRP.
Over three years, IVV compounded at +21.38% per year against +8.41% for VRP; over five years the annualized figures are +13.51% and +4.03% respectively. Across the full 12-year window we track, IVV has the edge at +12.65% annualized vs +2.27%.
Past performance does not guarantee future results.
Risk: Volatility and Drawdowns
IVV has been the more volatile fund, with annualized monthly volatility of 14.8% compared with 7.4% for VRP. 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 -33.9% for IVV and -46.2% for VRP. Drawdown depth is what each fund did in the worst stretch of the window measured above.
The two funds' monthly returns correlate at 0.73. They usually move together, but the gap leaves some room for diversification.
Fees and Cost Over Time
IVV charges 0.03% per year while VRP charges 0.50%. On a $10,000 position that is $3 vs $50 annually, a gap of $47 per year that compounds over a long holding period. On income, IVV currently yields 1.06% against 6.09% for VRP.
Holdings Overlap
At least 6.1% of IVV's money is in holdings VRP also owns.
Stated as a floor: for VRP, our book for it covers 72.4% 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 VRP share little of their money.
31 positions in common, counted across the 490 positions we hold weights for in IVV and 265 in VRP, against full books of 508 and 343.
Top Shared Holdings
| Stock | Weight in IVV | Weight in VRP | Difference |
|---|---|---|---|
| JPMJpmorgan Chase | 1.44% | 1.05% | 0.39% |
| BACBank of America Corp.: Financials | 0.61% | 1.06% | 0.45% |
| WFCWells Fargo & Co. | 0.40% | 0.77% | 0.37% |
| CVSCvs Corp | 0.18% | 0.83% | 0.65% |
| VZVerizon Communic | 0.32% | 0.68% | 0.36% |
| AXPAmerican Express Co. | 0.27% | 0.56% | 0.29% |
| SOSouthern Co. | 0.15% | 0.64% | 0.49% |
| NEENextera Energy Inc | 0.26% | 0.51% | 0.25% |
| GSGoldman Sachs Group, Inc. (The), Series V | 0.46% | 0.26% | 0.20% |
| CCitigroup Inc 6.875 11/73 6.88 2173-11-15 | 0.34% | 0.35% | 0.01% |
You are not choosing between two funds in isolation.
Whichever of IVV and VRP 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 VRP?
IVV has an expense ratio of 0.03% while VRP charges 0.50%. IVV is the cheaper option, by $47 a year on a $10,000 investment.
Which performed better, IVV or VRP?
Over the past year IVV returned +16.61% vs +2.72% for VRP, so IVV leads on 1-year performance. Over the longest common window we track (12 years), IVV annualized +12.65% vs +2.27% for VRP. Past performance does not guarantee future results. This is information, not a recommendation.
Which is riskier, IVV or VRP?
IVV has been the more volatile fund at 14.8% annualized versus 7.4% for VRP. Worst drawdown: IVV -33.9% vs VRP -46.2%.
Should I hold both IVV and VRP?
IVV and VRP have a monthly-return correlation of 0.73, 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 VRP?
At least 6.1% of IVV's money is in holdings VRP also owns. Our book for VRP is partial, so the real figure is this or higher. They hold 31 positions in common, counted across the 490 positions we hold weights for in IVV and 265 in VRP.
Which pays a higher dividend, IVV or VRP?
IVV yields 1.06% while VRP yields 6.09%, so VRP currently pays the higher dividend yield.
Is VRP better than IVV?
IVV has a lower expense ratio. IVV led over 1Y, 3Y, 5Y and the full window. Which one suits a particular account depends on what it is for. This is information, not a recommendation.