IVV vs VTEB
iShares Core S&P 500 ETF vs Vanguard Tax-Exempt Bond ETF
Quick Verdict
IVV delivered stronger 1-year returns. VTEB offers more diversification with 3533 holdings.
Side-by-Side Comparison
| Metric | IVV | VTEB | Winner |
|---|---|---|---|
| Expense Ratio | 0.03% | 0.03% | |
| AUM | $865.2B | $46.0B | |
| Dividend Yield | 1.09% | 3.34% | |
| Holdings | 508 | 9,952 | |
| YTD Return | +13.43% | +0.62% | |
| 1Y Return | +22.61% | +5.07% | |
| 3Y Return (annualized) | +21.47% | +3.14% | |
| 5Y Return (annualized) | +13.26% | +0.61% | |
| Volatility (annualized) | 15.1% | 4.9% | |
| Max Drawdown | -56.5% | -17.0% | |
| Fund Family | iShares by BlackRock (US) | Vanguard (US) | |
| Category | Equity | Tax Preferred | |
| Inception | May 15, 2000 | Aug 21, 2015 |
IVV vs VTEB Performance
iShares Core S&P 500 ETF (IVV) is a ETF from iShares by BlackRock (US) and Vanguard Tax-Exempt Bond ETF (VTEB) is a ETF from Vanguard (US). Over the past year IVV returned +22.61% while VTEB returned +5.07%. Year to date, IVV is up 13.43% versus a gain of 0.62% for VTEB.
Over three years, IVV compounded at +21.47% per year against +3.14% for VTEB; over five years the annualized figures are +13.26% and +0.61% respectively. Across the full 11-year window we track, IVV has the edge at +7.03% annualized vs +1.27%. 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 4.9% for VTEB. 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 -17.0% for VTEB. 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 0.43. They move independently enough that combining them can meaningfully diversify a portfolio.
Fees and Cost Over Time
IVV charges 0.03% per year while VTEB charges 0.03%. On a $10,000 position that is $3 vs $3 annually. On income, IVV currently yields 1.09% against 3.34% for VTEB.
Holdings Overlap
IVV and VTEB share 0 holdings out of 4038 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 VTEB?
IVV has an expense ratio of 0.03% while VTEB charges 0.03%. They cost the same. On a $10,000 investment, that is $0 per year of difference.
Which performed better, IVV or VTEB?
Over the past year IVV returned +22.61% vs +5.07% for VTEB, so IVV leads on 1-year performance. Over the longest common window we track (11 years), IVV annualized +7.03% vs +1.27% for VTEB. Past performance does not guarantee future results.
Which is riskier, IVV or VTEB?
IVV has been the more volatile fund at 15.1% annualized versus 4.9% for VTEB. Worst drawdown: IVV -56.5% vs VTEB -17.0%.
Should I hold both IVV and VTEB?
IVV and VTEB have a monthly-return correlation of 0.43, so combining them can provide real diversification depending on your allocation goals.
What is the holdings overlap between IVV and VTEB?
IVV and VTEB share 0 common holdings with a 0.0% weight overlap. Combined, they hold 4038 unique securities.
Which pays a higher dividend, IVV or VTEB?
IVV yields 1.09% while VTEB yields 3.34%, so VTEB currently pays the higher dividend yield.
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