IVV vs VTES
iShares Core S&P 500 ETF vs Vanguard Short-Term Tax-Exempt Bond ETF
Quick Verdict
IVV has a lower expense ratio. IVV delivered stronger 1-year returns. VTES offers more diversification with 1031 holdings.
Side-by-Side Comparison
| Metric | IVV | VTES | Winner |
|---|---|---|---|
| Expense Ratio | 0.03% | 0.05% | |
| AUM | $865.2B | $2.1B | |
| Dividend Yield | 1.09% | 2.74% | |
| Holdings | 508 | 3,067 | |
| YTD Return | +13.43% | +0.53% | |
| 1Y Return | +22.61% | +1.77% | |
| 3Y Return (annualized) | +21.47% | +3.00% | |
| 5Y Return (annualized) | +13.26% | - | |
| Volatility (annualized) | 15.1% | 2.3% | |
| Max Drawdown | -56.5% | -2.4% | |
| Fund Family | iShares by BlackRock (US) | Vanguard (US) | |
| Category | Equity | Tax Preferred | |
| Inception | May 15, 2000 | Mar 7, 2023 |
IVV vs VTES Performance
iShares Core S&P 500 ETF (IVV) is a ETF from iShares by BlackRock (US) and Vanguard Short-Term Tax-Exempt Bond ETF (VTES) is a ETF from Vanguard (US). Over the past year IVV returned +22.61% while VTES returned +1.77%. Year to date, IVV is up 13.43% versus a gain of 0.53% for VTES.
Over three years, IVV compounded at +21.47% per year against +3.00% for VTES. Across the full 3-year window we track, IVV has the edge at +7.03% annualized vs +2.82%. 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 2.3% for VTES. 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 -2.4% for VTES. 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 0.64. They move independently enough that combining them can meaningfully diversify a portfolio.
Fees and Cost Over Time
IVV charges 0.03% per year while VTES charges 0.05%. On a $10,000 position that is $3 vs $5 annually, a gap of $2 per year that compounds over a long holding period. On income, IVV currently yields 1.09% against 2.74% for VTES.
Holdings Overlap
IVV and VTES share 0 holdings out of 1536 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 VTES?
IVV has an expense ratio of 0.03% while VTES charges 0.05%. IVV is the cheaper option. On a $10,000 investment, that is $2 per year of difference.
Which performed better, IVV or VTES?
Over the past year IVV returned +22.61% vs +1.77% for VTES, so IVV leads on 1-year performance. Over the longest common window we track (3 years), IVV annualized +7.03% vs +2.82% for VTES. Past performance does not guarantee future results.
Which is riskier, IVV or VTES?
IVV has been the more volatile fund at 15.1% annualized versus 2.3% for VTES. Worst drawdown: IVV -56.5% vs VTES -2.4%.
Should I hold both IVV and VTES?
IVV and VTES have a monthly-return correlation of 0.64, so combining them can provide real diversification depending on your allocation goals.
What is the holdings overlap between IVV and VTES?
IVV and VTES share 0 common holdings with a 0.0% weight overlap. Combined, they hold 1536 unique securities.
Which pays a higher dividend, IVV or VTES?
IVV yields 1.09% while VTES yields 2.74%, so VTES currently pays the higher dividend yield.
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