IVV vs XAR
iShares Core S&P 500 ETF vs State Street SPDR S&P Aerospace & Defense ETF
Which is better, IVV or XAR?
Large Cap Blend against Mid Cap Growth.
IVV has a lower expense ratio. IVV led over 1Y, XAR over 3Y, 5Y and the full window. XAR is less concentrated, with 31.1% of the fund in its ten largest positions against 37.9%.
MarketXLS is not an investment adviser. This comparison is generated automatically from market data and is for information only. A Best mark means the better reading on that one measure, not a recommendation to buy.
Side-by-Side Comparison
| Metric | IVV | XAR |
|---|---|---|
| Expense Ratio | 0.03%Best | 0.35% |
| AUM | $886.7B | $6.0B |
| Dividend Yield | 1.10% | 0.31% |
| Holdings | 508 | 48 |
| YTD Return | +13.39%Best | +1.07% |
| 1Y Return | +20.08%Best | +17.88% |
| 3Y Return (annualized) | +21.29% | +28.71%Best |
| 5Y Return (annualized) | +12.88% | +16.56%Best |
| Volatility (annualized) | 14.1%Best | 20.3% |
| Max Drawdown | -33.9%Best | -46.7% |
| $10,000 over 5 years | $18,327 | $21,515Best |
| Top 10 Weight | 37.9% | 31.1%Best |
| Fund Family | iShares by BlackRock (US) | State Street Investment Management |
| Category | Equity | Equity |
| Style | Large Cap Blend | Mid Cap Growth |
| Inception | May 15, 2000 | Sep 28, 2011 |
Volatility and max drawdown are measured over the window both funds cover: Sep 29, 2011 to Sep 4, 2026 (14.9 years).
IVV vs XAR growth
Month-end closes. Both lines start at 0% in the first month shown, so the gap between them is the difference in growth across that window. The full view covers the 14.9 years both funds cover.
IVV vs XAR Performance
iShares Core S&P 500 ETF (IVV) is an ETF from iShares by BlackRock (US) and State Street SPDR S&P Aerospace & Defense ETF (XAR) is an ETF from State Street Investment Management. Over the past year IVV returned +20.08% while XAR returned +17.88%. Year to date, IVV is up 13.39% versus a gain of 1.07% for XAR.
Over three years, IVV compounded at +21.29% per year against +28.71% for XAR; over five years the annualized figures are +12.88% and +16.56% respectively. Across the full 15-year window we track, XAR has the edge at +16.93% annualized vs +14.11%.
Past performance does not guarantee future results.
Risk: Volatility and Drawdowns
XAR has been the more volatile fund, with annualized monthly volatility of 20.3% compared with 14.1% 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 -33.9% for IVV and -46.7% for XAR. Drawdown depth is what each fund did in the worst stretch of the window measured above.
The two funds' monthly returns correlate at 0.76. They usually move together, but the gap leaves some room for diversification.
Fees and Cost Over Time
IVV charges 0.03% per year while XAR charges 0.35%. On a $10,000 position that is $3 vs $35 annually, a gap of $32 per year that compounds over a long holding period. On income, IVV currently yields 1.10% against 0.31% for XAR.
Holdings Overlap
2.3% of IVV's money is in holdings XAR also owns. 34.8% of XAR's money is in holdings IVV also owns.
The two portfolios partly overlap.
12 positions in common, counted across the 505 positions we hold weights for in IVV and 48 in XAR, against full books of 508 and 48.
What only one of them owns
Measured across the 505 and 48 positions we hold weights for.
IVV holds 485 positions XAR does not, 97.1% of the fund.
Largest: NVDA 7.98%, AAPL 6.86%, MSFT 5.44%, AMZN 4.01%, GOOGL 3.19%
Top Shared Holdings
| Stock | Weight in IVV | Weight in XAR | Difference |
|---|---|---|---|
| GEGeneral Electric Co. | 0.60% | 3.07% | 2.47% |
| RTXRaytheon Co. | 0.45% | 3.19% | 2.74% |
| AXONAxon Enterprise Inc | 0.07% | 3.52% | 3.45% |
| BABoeing Co | 0.28% | 2.94% | 2.66% |
| HWMHowmet Aerospace Inc. | 0.18% | 3.00% | 2.82% |
| LMTLockheed Martin Corp | 0.18% | 2.91% | 2.73% |
| GDGeneral Dynamics Corp. | 0.15% | 2.93% | 2.78% |
| HIIHuntington Ingalls Industries Inc. | 0.02% | 2.90% | 2.88% |
| TDGTransdigm Group Inc. | 0.11% | 2.73% | 2.62% |
| NOCNorthrop Grumman Corp. | 0.11% | 2.64% | 2.53% |
34.8% of XAR is already inside IVV.
You probably hold more than these two. Add the rest and see how much of the whole book is the same companies twice.
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Frequently Asked Questions
Which is cheaper, IVV or XAR?
IVV has an expense ratio of 0.03% while XAR charges 0.35%. IVV is the cheaper option, by $32 a year on a $10,000 investment.
Which performed better, IVV or XAR?
Over the past year IVV returned +20.08% vs +17.88% for XAR, so IVV leads on 1-year performance. Over the longest common window we track (15 years), IVV annualized +14.11% vs +16.93% for XAR. Past performance does not guarantee future results. This is information, not a recommendation.
Which is riskier, IVV or XAR?
XAR has been the more volatile fund at 20.3% annualized versus 14.1% for IVV. Worst drawdown: IVV -33.9% vs XAR -46.7%.
Should I hold both IVV and XAR?
IVV and XAR have a monthly-return correlation of 0.76, so their returns are far enough apart for the mix to behave differently from either one alone. This is information, not a recommendation.
What is the holdings overlap between IVV and XAR?
34.8% of XAR's money is in holdings IVV also owns. 34.8% of XAR's is in holdings IVV also owns. They hold 12 positions in common, counted across the 505 positions we hold weights for in IVV and 48 in XAR.
Which pays a higher dividend, IVV or XAR?
IVV yields 1.10% while XAR yields 0.31%, so IVV currently pays the higher dividend yield.
Is XAR better than IVV?
IVV has a lower expense ratio. IVV led over 1Y, XAR over 3Y, 5Y and the full window. XAR is less concentrated, with 31.1% of the fund in its ten largest positions against 37.9%. Which one suits a particular account depends on what it is for. This is information, not a recommendation.