IVV vs VTWO
iShares Core S&P 500 ETF vs Vanguard Russell 2000 ETF
Quick Verdict
IVV has a lower expense ratio. VTWO delivered stronger 1-year returns. VTWO offers more diversification with 1943 holdings.
Side-by-Side Comparison
| Metric | IVV | VTWO | Winner |
|---|---|---|---|
| Expense Ratio | 0.03% | 0.06% | |
| AUM | $865.2B | $17.9B | |
| Dividend Yield | 1.09% | 1.39% | |
| Holdings | 508 | 1,970 | |
| YTD Return | +13.80% | +21.83% | |
| 1Y Return | +23.70% | +38.81% | |
| 3Y Return (annualized) | +21.49% | +17.59% | |
| 5Y Return (annualized) | +13.43% | +7.82% | |
| Volatility (annualized) | 15.1% | 19.1% | |
| Max Drawdown | -56.5% | -42.4% | |
| Fund Family | iShares by BlackRock (US) | Vanguard (US) | |
| Category | Equity | Equity | |
| Inception | May 15, 2000 | Sep 20, 2010 |
IVV vs VTWO Performance
iShares Core S&P 500 ETF (IVV) is a ETF from iShares by BlackRock (US) and Vanguard Russell 2000 ETF (VTWO) is a ETF from Vanguard (US). Over the past year IVV returned +23.70% while VTWO returned +38.81%. Year to date, IVV is up 13.80% versus a gain of 21.83% for VTWO.
Over three years, IVV compounded at +21.49% per year against +17.59% for VTWO; over five years the annualized figures are +13.43% and +7.82% respectively. Across the full 16-year window we track, VTWO has the edge at +10.77% annualized vs +7.05%. Past performance does not guarantee future results.
Risk: Volatility and Drawdowns
VTWO has been the more volatile fund, with annualized monthly volatility of 19.1% 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 -42.4% for VTWO. 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 0.86. They usually move together, but the gap leaves some room for diversification.
Fees and Cost Over Time
IVV charges 0.03% per year while VTWO 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 1.09% against 1.39% for VTWO.
Holdings Overlap
IVV and VTWO share 4 holdings out of 2444 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 VTWO?
IVV has an expense ratio of 0.03% while VTWO 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 VTWO?
Over the past year IVV returned +23.70% vs +38.81% for VTWO, so VTWO leads on 1-year performance. Over the longest common window we track (16 years), IVV annualized +7.05% vs +10.77% for VTWO. Past performance does not guarantee future results.
Which is riskier, IVV or VTWO?
VTWO has been the more volatile fund at 19.1% annualized versus 15.1% for IVV. Worst drawdown: IVV -56.5% vs VTWO -42.4%.
Should I hold both IVV and VTWO?
IVV and VTWO have a monthly-return correlation of 0.86, so combining them can provide real diversification depending on your allocation goals.
What is the holdings overlap between IVV and VTWO?
IVV and VTWO share 4 common holdings with a 0.1% weight overlap. Combined, they hold 2444 unique securities.
Which pays a higher dividend, IVV or VTWO?
IVV yields 1.09% while VTWO yields 1.39%, so VTWO currently pays the higher dividend yield.
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