IVV vs VTBNX
iShares Core S&P 500 ETF vs Vanguard Total Bond Market II Index Fund Institutional Shares
Quick Verdict
VTBNX has a lower expense ratio. IVV delivered stronger 1-year returns. VTBNX offers more diversification with 15,623 holdings.
Side-by-Side Comparison
| Metric | IVV | VTBNX | Winner |
|---|---|---|---|
| Expense Ratio | 0.03% | 0.02% | |
| AUM | $907.0B | $207.3B | |
| Dividend Yield | 1.10% | 3.79% | |
| Holdings | 508 | 15,623 | |
| YTD Return | +12.71% | -2.49% | |
| 1Y Return | +21.89% | -1.68% | |
| 3Y Return (annualized) | +22.08% | +0.72% | |
| 5Y Return (annualized) | +12.96% | -3.58% | |
| Volatility (annualized) | 15.1% | 6.3% | |
| Max Drawdown | -56.5% | -21.5% | |
| Fund Family | iShares by BlackRock (US) | Vanguard (US) | |
| Category | Equity | Fixed Income | |
| Inception | May 15, 2000 | Feb 17, 2009 |
IVV vs VTBNX Performance
iShares Core S&P 500 ETF (IVV) is a ETF from iShares by BlackRock (US) and Vanguard Total Bond Market II Index Fund Institutional Shares (VTBNX) is a mutual fund from Vanguard (US). Over the past year IVV returned +21.89% while VTBNX returned -1.68%. Year to date, IVV is up 12.71% versus a loss of 2.49% for VTBNX.
Over three years, IVV compounded at +22.08% per year against +0.72% for VTBNX; over five years the annualized figures are +12.96% and -3.58% respectively. Across the full 5-year window we track, IVV has the edge at +7.00% annualized vs -3.58%. 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 6.3% for VTBNX. 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 -21.5% for VTBNX. 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 0.63. They move independently enough that combining them can meaningfully diversify a portfolio.
Fees and Cost Over Time
IVV charges 0.03% per year while VTBNX charges 0.02%. On a $10,000 position that is $3 vs $2 annually, a gap of $1 per year that compounds over a long holding period. On income, IVV currently yields 1.10% against 3.79% for VTBNX.
Holdings Overlap
IVV and VTBNX share 6 holdings out of 13227 unique holdings combined, representing a 0.1% weight overlap.
Moderate overlap means holding both could provide meaningful diversification benefits.
Frequently Asked Questions
Which is cheaper, IVV or VTBNX?
IVV has an expense ratio of 0.03% while VTBNX charges 0.02%. VTBNX is the cheaper option. On a $10,000 investment, that is $1 per year of difference.
Which performed better, IVV or VTBNX?
Over the past year IVV returned +21.89% vs -1.68% for VTBNX, so IVV leads on 1-year performance. Over the longest common window we track (5 years), IVV annualized +7.00% vs -3.58% for VTBNX. Past performance does not guarantee future results.
Which is riskier, IVV or VTBNX?
IVV has been the more volatile fund at 15.1% annualized versus 6.3% for VTBNX. Worst drawdown: IVV -56.5% vs VTBNX -21.5%.
Should I hold both IVV and VTBNX?
IVV and VTBNX have a monthly-return correlation of 0.63, so combining them can provide real diversification depending on your allocation goals.
What is the holdings overlap between IVV and VTBNX?
IVV and VTBNX share 6 common holdings with a 0.1% weight overlap. Combined, they hold 13227 unique securities.
Which pays a higher dividend, IVV or VTBNX?
IVV yields 1.10% while VTBNX yields 3.79%, so VTBNX currently pays the higher dividend yield.
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