IVV vs VSDM
iShares Core S&P 500 ETF vs Vanguard Short Duration Tax-Exempt Bond 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 | VSDM | Winner |
|---|---|---|---|
| Expense Ratio | 0.03% | 0.12% | |
| AUM | $865.2B | $763M | |
| Dividend Yield | 1.09% | 3.10% | |
| Holdings | 508 | 3,774 | |
| YTD Return | +13.43% | -0.33% | |
| 1Y Return | +22.61% | +1.46% | |
| 3Y Return (annualized) | +21.47% | - | |
| 5Y Return (annualized) | +13.26% | - | |
| Volatility (annualized) | 15.1% | 2.1% | |
| Max Drawdown | -56.5% | -2.0% | |
| Fund Family | iShares by BlackRock (US) | Vanguard (US) | |
| Category | Equity | Tax Preferred | |
| Inception | May 15, 2000 | Nov 19, 2024 |
IVV vs VSDM Performance
iShares Core S&P 500 ETF (IVV) is a ETF from iShares by BlackRock (US) and Vanguard Short Duration Tax-Exempt Bond ETF (VSDM) is a ETF from Vanguard (US). Over the past year IVV returned +22.61% while VSDM returned +1.46%. Year to date, IVV is up 13.43% versus a loss of 0.33% for VSDM.
Risk: Volatility and Drawdowns
IVV has been the more volatile fund, with annualized monthly volatility of 15.1% compared with 2.1% for VSDM. 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 -2.0% for VSDM. 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 VSDM charges 0.12%. On a $10,000 position that is $3 vs $12 annually, a gap of $9 per year that compounds over a long holding period. On income, IVV currently yields 1.09% against 3.10% for VSDM.
Holdings Overlap
IVV and VSDM share 0 holdings out of 929 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 VSDM?
IVV has an expense ratio of 0.03% while VSDM charges 0.12%. IVV is the cheaper option. On a $10,000 investment, that is $9 per year of difference.
Which performed better, IVV or VSDM?
Over the past year IVV returned +22.61% vs +1.46% for VSDM, so IVV leads on 1-year performance. Over the longest common window we track (2 years), IVV annualized +7.03% vs +3.41% for VSDM. Past performance does not guarantee future results.
Which is riskier, IVV or VSDM?
IVV has been the more volatile fund at 15.1% annualized versus 2.1% for VSDM. Worst drawdown: IVV -56.5% vs VSDM -2.0%.
Should I hold both IVV and VSDM?
IVV and VSDM 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 VSDM?
IVV and VSDM share 0 common holdings with a 0.0% weight overlap. Combined, they hold 929 unique securities.
Which pays a higher dividend, IVV or VSDM?
IVV yields 1.09% while VSDM yields 3.10%, so VSDM currently pays the higher dividend yield.
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