IVV vs XLC
iShares Core S&P 500 ETF vs State Street Communication Services Select Sector SPDR ETF
Which is better, IVV or XLC?
Large Cap Blend against Large Cap Growth.
IVV has a lower expense ratio. IVV led over 1Y, 3Y, 5Y and the full window. IVV is less concentrated, with 37.8% of the fund in its ten largest positions against 69.7%.
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 | XLC |
|---|---|---|
| Expense Ratio | 0.03%Best | 0.08% |
| AUM | $876.4B | $22.4B |
| Dividend Yield | 1.06% | 1.28% |
| Holdings | 508 | 26 |
| YTD Return | +13.32%Best | -3.15% |
| 1Y Return | +17.08%Best | -4.08% |
| 3Y Return (annualized) | +22.72%Best | +20.90% |
| 5Y Return (annualized) | +13.20%Best | +7.66% |
| Volatility (annualized) | 16.6%Best | 18.9% |
| Max Drawdown | -33.9%Best | -46.6% |
| $10,000 over 5 years | $18,588Best | $14,463 |
| Top 10 Weight | 37.8%Best | 69.7% |
| Fund Family | iShares by BlackRock (US) | SPDR State Street Global Advisors |
| Category | Equity | Equity |
| Style | Large Cap Blend | Large Cap Growth |
| Inception | May 15, 2000 | Jun 18, 2018 |
Volatility and max drawdown are measured over the window both funds cover: Jun 19, 2018 to Sep 23, 2026 (8.3 years).
IVV vs XLC 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 8.3 years both funds cover.
IVV vs XLC Performance
iShares Core S&P 500 ETF (IVV) is an ETF from iShares by BlackRock (US) and State Street Communication Services Select Sector SPDR ETF (XLC) is an ETF from SPDR State Street Global Advisors. Over the past year IVV returned +17.08% while XLC returned -4.08%. Year to date, IVV is up 13.32% versus a loss of 3.15% for XLC.
Over three years, IVV compounded at +22.72% per year against +20.90% for XLC; over five years the annualized figures are +13.20% and +7.66% respectively. Across the full 8-year window we track, IVV has the edge at +14.20% annualized vs +11.07%.
Past performance does not guarantee future results.
Risk: Volatility and Drawdowns
XLC has been the more volatile fund, with annualized monthly volatility of 18.9% compared with 16.6% 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 -46.6% for XLC. Drawdown depth is what each fund did in the worst stretch of the window measured above.
The two funds' monthly returns correlate at 0.87. They usually move together, but the gap leaves some room for diversification.
Fees and Cost Over Time
IVV charges 0.03% per year while XLC 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 1.06% against 1.28% for XLC.
Holdings Overlap
9.5% of IVV's money is in holdings XLC also owns. 98.8% of XLC's money is in holdings IVV also owns.
Most of XLC is already inside IVV. Owning both mostly buys the same companies twice.
23 positions in common, counted across the 490 positions we hold weights for in IVV and 25 in XLC, against full books of 508 and 26.
What only one of them owns
Measured across the 490 and 25 positions we hold weights for.
IVV holds 459 positions XLC does not, 89.2% of the fund.
Largest: NVDA 8.07%, AAPL 7.02%, MSFT 5.69%, AMZN 3.84%, AVGO 2.65%
Top Shared Holdings
| Stock | Weight in IVV | Weight in XLC | Difference |
|---|---|---|---|
| METAMeta Platforms Inc | 1.90% | 17.08% | 15.18% |
| GOOGLAlphabet Inc,class A | 3.00% | 10.24% | 7.24% |
| GOOGAlphabet Inc | 2.39% | 8.18% | 5.79% |
| TBBAt&t Inc | 0.27% | 5.31% | 5.04% |
| VZVerizon Communic | 0.32% | 5.09% | 4.77% |
| NFLXNetflix, Inc. | 0.51% | 4.88% | 4.37% |
| DISWalt Disney Co | 0.28% | 4.80% | 4.52% |
| CMCSAComcast Corp-class A Cmcsa | 0.14% | 4.84% | 4.70% |
| TMUST-Mobile Usa Inc Esrw Usd Npv Ref Sm#585558 | 0.13% | 4.67% | 4.54% |
| WBDWarner Bros. Discovery, Inc | 0.11% | 4.65% | 4.54% |
98.8% of XLC 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 XLC?
IVV has an expense ratio of 0.03% while XLC charges 0.08%. IVV is the cheaper option, by $5 a year on a $10,000 investment.
Which performed better, IVV or XLC?
Over the past year IVV returned +17.08% vs -4.08% for XLC, so IVV leads on 1-year performance. Over the longest common window we track (8 years), IVV annualized +14.20% vs +11.07% for XLC. Past performance does not guarantee future results. This is information, not a recommendation.
Which is riskier, IVV or XLC?
XLC has been the more volatile fund at 18.9% annualized versus 16.6% for IVV. Worst drawdown: IVV -33.9% vs XLC -46.6%.
Should I hold both IVV and XLC?
IVV and XLC have a monthly-return correlation of 0.87, 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 XLC?
98.8% of XLC's money is in holdings IVV also owns. 98.8% of XLC's is in holdings IVV also owns. They hold 23 positions in common, counted across the 490 positions we hold weights for in IVV and 25 in XLC.
Which pays a higher dividend, IVV or XLC?
IVV yields 1.06% while XLC yields 1.28%, so XLC currently pays the higher dividend yield.
Is XLC better than IVV?
IVV has a lower expense ratio. IVV led over 1Y, 3Y, 5Y and the full window. IVV is less concentrated, with 37.8% of the fund in its ten largest positions against 69.7%. Which one suits a particular account depends on what it is for. This is information, not a recommendation.