IVV vs XLB
iShares Core S&P 500 ETF vs State Street Materials Select Sector SPDR ETF
Quick Verdict
IVV has a lower expense ratio. IVV delivered stronger 1-year returns. IVV offers more diversification with 505 holdings.
Side-by-Side Comparison
| Metric | IVV | XLB | Winner |
|---|---|---|---|
| Expense Ratio | 0.03% | 0.08% | |
| AUM | $865.2B | $8.6B | |
| Dividend Yield | 1.09% | 1.67% | |
| Holdings | 508 | 29 | |
| YTD Return | +13.72% | +14.94% | |
| 1Y Return | +21.64% | +19.91% | |
| 3Y Return (annualized) | +21.55% | +10.37% | |
| 5Y Return (annualized) | +13.27% | +6.10% | |
| Volatility (annualized) | 15.1% | 20.7% | |
| Max Drawdown | -56.5% | -60.7% | |
| Fund Family | iShares by BlackRock (US) | SPDR State Street Global Advisors | |
| Category | Equity | Equity | |
| Inception | May 15, 2000 | Dec 16, 1998 |
IVV vs XLB Performance
iShares Core S&P 500 ETF (IVV) is a ETF from iShares by BlackRock (US) and State Street Materials Select Sector SPDR ETF (XLB) is a ETF from SPDR State Street Global Advisors. Over the past year IVV returned +21.64% while XLB returned +19.91%. Year to date, IVV is up 13.72% versus a gain of 14.94% for XLB.
Over three years, IVV compounded at +21.55% per year against +10.37% for XLB; over five years the annualized figures are +13.27% and +6.10% respectively. Across the full 26-year window we track, IVV has the edge at +7.04% annualized vs +6.45%. Past performance does not guarantee future results.
Risk: Volatility and Drawdowns
XLB has been the more volatile fund, with annualized monthly volatility of 20.7% 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 -60.7% for XLB. 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 0.82. They usually move together, but the gap leaves some room for diversification.
Fees and Cost Over Time
IVV charges 0.03% per year while XLB charges 0.08%. On a $10,000 position that is $3 vs $8 annually, a gap of $5 per year that compounds over a long holding period. On income, IVV currently yields 1.09% against 1.67% for XLB.
Holdings Overlap
IVV and XLB share 23 holdings out of 509 unique holdings combined, representing a 1.6% weight overlap.
Moderate overlap means holding both could provide meaningful diversification benefits.
Frequently Asked Questions
Which is cheaper, IVV or XLB?
IVV has an expense ratio of 0.03% while XLB charges 0.08%. IVV is the cheaper option. On a $10,000 investment, that is $5 per year of difference.
Which performed better, IVV or XLB?
Over the past year IVV returned +21.64% vs +19.91% for XLB, so IVV leads on 1-year performance. Over the longest common window we track (26 years), IVV annualized +7.04% vs +6.45% for XLB. Past performance does not guarantee future results.
Which is riskier, IVV or XLB?
XLB has been the more volatile fund at 20.7% annualized versus 15.1% for IVV. Worst drawdown: IVV -56.5% vs XLB -60.7%.
Should I hold both IVV and XLB?
IVV and XLB have a monthly-return correlation of 0.82, so combining them can provide real diversification depending on your allocation goals.
What is the holdings overlap between IVV and XLB?
IVV and XLB share 23 common holdings with a 1.6% weight overlap. Combined, they hold 509 unique securities.
Which pays a higher dividend, IVV or XLB?
IVV yields 1.09% while XLB yields 1.67%, so XLB currently pays the higher dividend yield.
Popular ETF Comparisons
Get Full ETF Analytics
Access complete holdings data, overlap analysis, screener tools, and more with FundXLS.