IVV vs XHB
iShares Core S&P 500 ETF vs State Street SPDR S&P Homebuilders ETF
Quick Verdict
IVV has a lower expense ratio. IVV delivered stronger 1-year returns. IVV offers more diversification with 508 holdings.
Side-by-Side Comparison
| Metric | IVV | XHB | Winner |
|---|---|---|---|
| Expense Ratio | 0.03% | 0.35% | |
| AUM | $907.0B | $1.5B | |
| Dividend Yield | 1.10% | 0.55% | |
| Holdings | 508 | 36 | |
| YTD Return | +12.28% | +1.40% | |
| 1Y Return | +20.94% | -5.32% | |
| 3Y Return (annualized) | +21.81% | +10.92% | |
| 5Y Return (annualized) | +13.05% | +7.57% | |
| Volatility (annualized) | 15.1% | 28.1% | |
| Max Drawdown | -56.5% | -82.3% | |
| Fund Family | iShares by BlackRock (US) | State Street Investment Management | |
| Category | Equity | Equity | |
| Inception | May 15, 2000 | Jan 31, 2006 |
IVV vs XHB Performance
iShares Core S&P 500 ETF (IVV) is a ETF from iShares by BlackRock (US) and State Street SPDR S&P Homebuilders ETF (XHB) is a ETF from State Street Investment Management. Over the past year IVV returned +20.94% while XHB returned -5.32%. Year to date, IVV is up 12.28% versus a gain of 1.40% for XHB.
Over three years, IVV compounded at +21.81% per year against +10.92% for XHB; over five years the annualized figures are +13.05% and +7.57% respectively. Across the full 21-year window we track, IVV has the edge at +6.98% annualized vs +4.45%. Past performance does not guarantee future results.
Risk: Volatility and Drawdowns
XHB has been the more volatile fund, with annualized monthly volatility of 28.1% 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 -82.3% for XHB. 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 0.73. They usually move together, but the gap leaves some room for diversification.
Fees and Cost Over Time
IVV charges 0.03% per year while XHB 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 0.55% for XHB.
Holdings Overlap
IVV and XHB share 14 holdings out of 525 unique holdings combined, representing a 1.3% weight overlap.
Moderate overlap means holding both could provide meaningful diversification benefits.
Frequently Asked Questions
Which is cheaper, IVV or XHB?
IVV has an expense ratio of 0.03% while XHB 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 XHB?
Over the past year IVV returned +20.94% vs -5.32% for XHB, so IVV leads on 1-year performance. Over the longest common window we track (21 years), IVV annualized +6.98% vs +4.45% for XHB. Past performance does not guarantee future results.
Which is riskier, IVV or XHB?
XHB has been the more volatile fund at 28.1% annualized versus 15.1% for IVV. Worst drawdown: IVV -56.5% vs XHB -82.3%.
Should I hold both IVV and XHB?
IVV and XHB have a monthly-return correlation of 0.73, so combining them can provide real diversification depending on your allocation goals.
What is the holdings overlap between IVV and XHB?
IVV and XHB share 14 common holdings with a 1.3% weight overlap. Combined, they hold 525 unique securities.
Which pays a higher dividend, IVV or XHB?
IVV yields 1.10% while XHB yields 0.55%, so IVV currently pays the higher dividend yield.
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