IVV vs XLC
iShares Core S&P 500 ETF vs State Street Communication Services Select Sector SPDR 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 | XLC | Winner |
|---|---|---|---|
| Expense Ratio | 0.03% | 0.08% | |
| AUM | $865.2B | $21.9B | |
| Dividend Yield | 1.09% | 1.21% | |
| Holdings | 508 | 26 | |
| YTD Return | +14.50% | -3.16% | |
| 1Y Return | +22.02% | +2.57% | |
| 3Y Return (annualized) | +21.80% | +19.87% | |
| 5Y Return (annualized) | +13.37% | +7.33% | |
| Volatility (annualized) | 15.1% | 19.0% | |
| Max Drawdown | -56.5% | -46.6% | |
| Fund Family | iShares by BlackRock (US) | SPDR State Street Global Advisors | |
| Category | Equity | Equity | |
| Inception | May 15, 2000 | Jun 18, 2018 |
IVV vs XLC Performance
iShares Core S&P 500 ETF (IVV) is a ETF from iShares by BlackRock (US) and State Street Communication Services Select Sector SPDR ETF (XLC) is a ETF from SPDR State Street Global Advisors. Over the past year IVV returned +22.02% while XLC returned +2.57%. Year to date, IVV is up 14.50% versus a loss of 3.16% for XLC.
Over three years, IVV compounded at +21.80% per year against +19.87% for XLC; over five years the annualized figures are +13.37% and +7.33% respectively. Across the full 8-year window we track, XLC has the edge at +11.23% annualized vs +7.07%. Past performance does not guarantee future results.
Risk: Volatility and Drawdowns
XLC has been the more volatile fund, with annualized monthly volatility of 19.0% 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 -46.6% for XLC. 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 0.87. 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 1.09% against 1.21% for XLC.
Holdings Overlap
IVV and XLC share 23 holdings out of 506 unique holdings combined, representing a 9.8% weight overlap.
Moderate overlap means holding both could provide meaningful diversification benefits.
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. On a $10,000 investment, that is $5 per year of difference.
Which performed better, IVV or XLC?
Over the past year IVV returned +22.02% vs +2.57% for XLC, so IVV leads on 1-year performance. Over the longest common window we track (8 years), IVV annualized +7.07% vs +11.23% for XLC. Past performance does not guarantee future results.
Which is riskier, IVV or XLC?
XLC has been the more volatile fund at 19.0% annualized versus 15.1% for IVV. Worst drawdown: IVV -56.5% vs XLC -46.6%.
Should I hold both IVV and XLC?
IVV and XLC have a monthly-return correlation of 0.87, so combining them can provide real diversification depending on your allocation goals.
What is the holdings overlap between IVV and XLC?
IVV and XLC share 23 common holdings with a 9.8% weight overlap. Combined, they hold 506 unique securities.
Which pays a higher dividend, IVV or XLC?
IVV yields 1.09% while XLC yields 1.21%, so XLC currently pays the higher dividend yield.
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