IVV vs VRP
iShares Core S&P 500 ETF vs Invesco Variable Rate Preferred ETF
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 | VRP | Winner |
|---|---|---|---|
| Expense Ratio | 0.03% | 0.50% | |
| AUM | $865.2B | $3.0B | |
| Dividend Yield | 1.09% | 6.23% | |
| Holdings | 508 | 343 | |
| YTD Return | +13.80% | +2.15% | |
| 1Y Return | +23.01% | +4.92% | |
| 3Y Return (annualized) | +21.77% | +8.62% | |
| 5Y Return (annualized) | +13.39% | +4.15% | |
| Volatility (annualized) | 15.1% | 7.4% | |
| Max Drawdown | -56.5% | -46.2% | |
| Fund Family | iShares by BlackRock (US) | Invesco (US) | |
| Category | Equity | Allocation/Balanced | |
| Inception | May 15, 2000 | May 1, 2014 |
IVV vs VRP Performance
iShares Core S&P 500 ETF (IVV) is a ETF from iShares by BlackRock (US) and Invesco Variable Rate Preferred ETF (VRP) is a ETF from Invesco (US). Over the past year IVV returned +23.01% while VRP returned +4.92%. Year to date, IVV is up 13.80% versus a gain of 2.15% for VRP.
Over three years, IVV compounded at +21.77% per year against +8.62% for VRP; over five years the annualized figures are +13.39% and +4.15% respectively. Across the full 12-year window we track, IVV has the edge at +7.04% annualized vs +2.31%. 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 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 -56.5% for IVV and -46.2% for VRP. 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 0.73. 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 1.09% against 6.23% for VRP.
Holdings Overlap
IVV and VRP share 25 holdings out of 758 unique holdings combined, representing a 4.4% weight overlap.
Moderate overlap means holding both could provide meaningful diversification benefits.
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. On a $10,000 investment, that is $47 per year of difference.
Which performed better, IVV or VRP?
Over the past year IVV returned +23.01% vs +4.92% for VRP, so IVV leads on 1-year performance. Over the longest common window we track (12 years), IVV annualized +7.04% vs +2.31% for VRP. Past performance does not guarantee future results.
Which is riskier, IVV or VRP?
IVV has been the more volatile fund at 15.1% annualized versus 7.4% for VRP. Worst drawdown: IVV -56.5% vs VRP -46.2%.
Should I hold both IVV and VRP?
IVV and VRP have a monthly-return correlation of 0.73, so combining them can provide real diversification depending on your allocation goals.
What is the holdings overlap between IVV and VRP?
IVV and VRP share 25 common holdings with a 4.4% weight overlap. Combined, they hold 758 unique securities.
Which pays a higher dividend, IVV or VRP?
IVV yields 1.09% while VRP yields 6.23%, so VRP currently pays the higher dividend yield.
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