IVV vs VSS
iShares Core S&P 500 ETF vs Vanguard FTSE All-World ex-US Small-Cap ETF
Quick Verdict
IVV has a lower expense ratio. IVV delivered stronger 1-year returns. VSS offers more diversification with 4,828 holdings.
Side-by-Side Comparison
| Metric | IVV | VSS | Winner |
|---|---|---|---|
| Expense Ratio | 0.03% | 0.06% | |
| AUM | $907.0B | $11.3B | |
| Dividend Yield | 1.10% | 3.31% | |
| Holdings | 508 | 4,828 | |
| YTD Return | +13.22% | +10.58% | |
| 1Y Return | +21.62% | +18.97% | |
| 3Y Return (annualized) | +22.17% | +17.37% | |
| 5Y Return (annualized) | +13.42% | +6.68% | |
| Volatility (annualized) | 15.1% | 17.3% | |
| Max Drawdown | -56.5% | -46.8% | |
| Fund Family | iShares by BlackRock (US) | Vanguard (US) | |
| Category | Equity | Equity | |
| Inception | May 15, 2000 | Apr 2, 2009 |
IVV vs VSS Performance
iShares Core S&P 500 ETF (IVV) is a ETF from iShares by BlackRock (US) and Vanguard FTSE All-World ex-US Small-Cap ETF (VSS) is a ETF from Vanguard (US). Over the past year IVV returned +21.62% while VSS returned +18.97%. Year to date, IVV is up 13.22% versus a gain of 10.58% for VSS.
Over three years, IVV compounded at +22.17% per year against +17.37% for VSS; over five years the annualized figures are +13.42% and +6.68% respectively. Across the full 17-year window we track, VSS has the edge at +7.55% annualized vs +7.02%. Past performance does not guarantee future results.
Risk: Volatility and Drawdowns
VSS has been the more volatile fund, with annualized monthly volatility of 17.3% compared with 15.1% 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 -46.8% for VSS. 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 0.84. They usually move together, but the gap leaves some room for diversification.
Fees and Cost Over Time
IVV charges 0.03% per year while VSS charges 0.06%. On a $10,000 position that is $3 vs $6 annually, a gap of $3 per year that compounds over a long holding period. On income, IVV currently yields 1.10% against 3.31% for VSS.
Holdings Overlap
IVV and VSS share 0 holdings out of 5158 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 VSS?
IVV has an expense ratio of 0.03% while VSS charges 0.06%. IVV is the cheaper option. On a $10,000 investment, that is $3 per year of difference.
Which performed better, IVV or VSS?
Over the past year IVV returned +21.62% vs +18.97% for VSS, so IVV leads on 1-year performance. Over the longest common window we track (17 years), IVV annualized +7.02% vs +7.55% for VSS. Past performance does not guarantee future results.
Which is riskier, IVV or VSS?
VSS has been the more volatile fund at 17.3% annualized versus 15.1% for IVV. Worst drawdown: IVV -56.5% vs VSS -46.8%.
Should I hold both IVV and VSS?
IVV and VSS have a monthly-return correlation of 0.84, so combining them can provide real diversification depending on your allocation goals.
What is the holdings overlap between IVV and VSS?
IVV and VSS share 0 common holdings with a 0.0% weight overlap. Combined, they hold 5158 unique securities.
Which pays a higher dividend, IVV or VSS?
IVV yields 1.10% while VSS yields 3.31%, so VSS currently pays the higher dividend yield.
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