IVV vs XBI
iShares Core S&P 500 ETF vs State Street SPDR S&P Biotech ETF
Quick Verdict
IVV has a lower expense ratio. XBI delivered stronger 1-year returns. IVV offers more diversification with 508 holdings.
Side-by-Side Comparison
| Metric | IVV | XBI | Winner |
|---|---|---|---|
| Expense Ratio | 0.03% | 0.35% | |
| AUM | $907.0B | $10.6B | |
| Dividend Yield | 1.10% | 0.39% | |
| Holdings | 508 | 157 | |
| YTD Return | +12.28% | +34.58% | |
| 1Y Return | +20.94% | +83.96% | |
| 3Y Return (annualized) | +21.81% | +28.02% | |
| 5Y Return (annualized) | +13.05% | +6.13% | |
| Volatility (annualized) | 15.1% | 27.0% | |
| Max Drawdown | -56.5% | -63.9% | |
| Fund Family | iShares by BlackRock (US) | State Street Investment Management | |
| Category | Equity | Equity | |
| Inception | May 15, 2000 | Jan 31, 2006 |
IVV vs XBI Performance
iShares Core S&P 500 ETF (IVV) is a ETF from iShares by BlackRock (US) and State Street SPDR S&P Biotech ETF (XBI) is a ETF from State Street Investment Management. Over the past year IVV returned +20.94% while XBI returned +83.96%. Year to date, IVV is up 12.28% versus a gain of 34.58% for XBI.
Over three years, IVV compounded at +21.81% per year against +28.02% for XBI; over five years the annualized figures are +13.05% and +6.13% respectively. Across the full 21-year window we track, XBI has the edge at +11.88% annualized vs +6.98%. Past performance does not guarantee future results.
Risk: Volatility and Drawdowns
XBI has been the more volatile fund, with annualized monthly volatility of 27.0% 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 -63.9% for XBI. 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 0.55. They move independently enough that combining them can meaningfully diversify a portfolio.
Fees and Cost Over Time
IVV charges 0.03% per year while XBI 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 0.39% for XBI.
Holdings Overlap
IVV and XBI share 8 holdings out of 650 unique holdings combined, representing a 1.7% weight overlap.
Moderate overlap means holding both could provide meaningful diversification benefits.
Frequently Asked Questions
Which is cheaper, IVV or XBI?
IVV has an expense ratio of 0.03% while XBI charges 0.35%. IVV is the cheaper option. On a $10,000 investment, that is $32 per year of difference.
Which performed better, IVV or XBI?
Over the past year IVV returned +20.94% vs +83.96% for XBI, so XBI leads on 1-year performance. Over the longest common window we track (21 years), IVV annualized +6.98% vs +11.88% for XBI. Past performance does not guarantee future results.
Which is riskier, IVV or XBI?
XBI has been the more volatile fund at 27.0% annualized versus 15.1% for IVV. Worst drawdown: IVV -56.5% vs XBI -63.9%.
Should I hold both IVV and XBI?
IVV and XBI have a monthly-return correlation of 0.55, so combining them can provide real diversification depending on your allocation goals.
What is the holdings overlap between IVV and XBI?
IVV and XBI share 8 common holdings with a 1.7% weight overlap. Combined, they hold 650 unique securities.
Which pays a higher dividend, IVV or XBI?
IVV yields 1.10% while XBI yields 0.39%, so IVV currently pays the higher dividend yield.
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