IVV vs VTEI
iShares Core S&P 500 ETF vs Vanguard Intermediate-Term Tax-Exempt Bond ETF
Quick Verdict
IVV has a lower expense ratio. IVV delivered stronger 1-year returns. VTEI offers more diversification with 1768 holdings.
Side-by-Side Comparison
| Metric | IVV | VTEI | Winner |
|---|---|---|---|
| Expense Ratio | 0.03% | 0.08% | |
| AUM | $865.2B | $1.5B | |
| Dividend Yield | 1.09% | 3.04% | |
| Holdings | 508 | 10,147 | |
| YTD Return | +13.72% | -1.20% | |
| 1Y Return | +21.64% | +2.28% | |
| 3Y Return (annualized) | +21.55% | - | |
| 5Y Return (annualized) | +13.27% | - | |
| Volatility (annualized) | 15.1% | 3.4% | |
| Max Drawdown | -56.5% | -3.6% | |
| Fund Family | iShares by BlackRock (US) | Vanguard (US) | |
| Category | Equity | Tax Preferred | |
| Inception | May 15, 2000 | Jan 26, 2024 |
IVV vs VTEI Performance
iShares Core S&P 500 ETF (IVV) is a ETF from iShares by BlackRock (US) and Vanguard Intermediate-Term Tax-Exempt Bond ETF (VTEI) is a ETF from Vanguard (US). Over the past year IVV returned +21.64% while VTEI returned +2.28%. Year to date, IVV is up 13.72% versus a loss of 1.20% for VTEI.
Risk: Volatility and Drawdowns
IVV has been the more volatile fund, with annualized monthly volatility of 15.1% compared with 3.4% for VTEI. 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 -3.6% for VTEI. 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 0.57. They move independently enough that combining them can meaningfully diversify a portfolio.
Fees and Cost Over Time
IVV charges 0.03% per year while VTEI charges 0.08%. On a $10,000 position that is $3 vs $8 annually, a gap of $5 per year that compounds over a long holding period. On income, IVV currently yields 1.09% against 3.04% for VTEI.
Holdings Overlap
IVV and VTEI share 0 holdings out of 2273 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 VTEI?
IVV has an expense ratio of 0.03% while VTEI charges 0.08%. IVV is the cheaper option. On a $10,000 investment, that is $5 per year of difference.
Which performed better, IVV or VTEI?
Over the past year IVV returned +21.64% vs +2.28% for VTEI, so IVV leads on 1-year performance. Over the longest common window we track (3 years), IVV annualized +7.04% vs +1.94% for VTEI. Past performance does not guarantee future results.
Which is riskier, IVV or VTEI?
IVV has been the more volatile fund at 15.1% annualized versus 3.4% for VTEI. Worst drawdown: IVV -56.5% vs VTEI -3.6%.
Should I hold both IVV and VTEI?
IVV and VTEI have a monthly-return correlation of 0.57, so combining them can provide real diversification depending on your allocation goals.
What is the holdings overlap between IVV and VTEI?
IVV and VTEI share 0 common holdings with a 0.0% weight overlap. Combined, they hold 2273 unique securities.
Which pays a higher dividend, IVV or VTEI?
IVV yields 1.09% while VTEI yields 3.04%, so VTEI currently pays the higher dividend yield.
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