IVV vs XLE
iShares Core S&P 500 ETF vs State Street Energy Select Sector SPDR ETF
Quick Verdict
IVV has a lower expense ratio. XLE delivered stronger 1-year returns. IVV offers more diversification with 505 holdings.
Side-by-Side Comparison
| Metric | IVV | XLE | Winner |
|---|---|---|---|
| Expense Ratio | 0.03% | 0.08% | |
| AUM | $865.2B | $38.1B | |
| Dividend Yield | 1.09% | 2.85% | |
| Holdings | 508 | 25 | |
| YTD Return | +14.50% | +35.60% | |
| 1Y Return | +22.02% | +47.04% | |
| 3Y Return (annualized) | +21.80% | +14.53% | |
| 5Y Return (annualized) | +13.37% | +24.28% | |
| Volatility (annualized) | 15.1% | 25.1% | |
| Max Drawdown | -56.5% | -76.7% | |
| Fund Family | iShares by BlackRock (US) | SPDR State Street Global Advisors | |
| Category | Equity | Equity | |
| Inception | May 15, 2000 | Dec 16, 1998 |
IVV vs XLE Performance
iShares Core S&P 500 ETF (IVV) is a ETF from iShares by BlackRock (US) and State Street Energy Select Sector SPDR ETF (XLE) is a ETF from SPDR State Street Global Advisors. Over the past year IVV returned +22.02% while XLE returned +47.04%. Year to date, IVV is up 14.50% versus a gain of 35.60% for XLE.
Over three years, IVV compounded at +21.80% per year against +14.53% for XLE; over five years the annualized figures are +13.37% and +24.28% respectively. Across the full 26-year window we track, IVV has the edge at +7.07% annualized vs +6.96%. Past performance does not guarantee future results.
Risk: Volatility and Drawdowns
XLE has been the more volatile fund, with annualized monthly volatility of 25.1% 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 -76.7% for XLE. 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 0.59. They move independently enough that combining them can meaningfully diversify a portfolio.
Fees and Cost Over Time
IVV charges 0.03% per year while XLE 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 2.85% for XLE.
Holdings Overlap
IVV and XLE share 21 holdings out of 506 unique holdings combined, representing a 3.3% weight overlap.
Moderate overlap means holding both could provide meaningful diversification benefits.
Frequently Asked Questions
Which is cheaper, IVV or XLE?
IVV has an expense ratio of 0.03% while XLE 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 XLE?
Over the past year IVV returned +22.02% vs +47.04% for XLE, so XLE leads on 1-year performance. Over the longest common window we track (26 years), IVV annualized +7.07% vs +6.96% for XLE. Past performance does not guarantee future results.
Which is riskier, IVV or XLE?
XLE has been the more volatile fund at 25.1% annualized versus 15.1% for IVV. Worst drawdown: IVV -56.5% vs XLE -76.7%.
Should I hold both IVV and XLE?
IVV and XLE have a monthly-return correlation of 0.59, so combining them can provide real diversification depending on your allocation goals.
What is the holdings overlap between IVV and XLE?
IVV and XLE share 21 common holdings with a 3.3% weight overlap. Combined, they hold 506 unique securities.
Which pays a higher dividend, IVV or XLE?
IVV yields 1.09% while XLE yields 2.85%, so XLE currently pays the higher dividend yield.
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