IVV vs XLI
iShares Core S&P 500 ETF vs State Street Industrial Select Sector SPDR ETF
Quick Verdict
IVV has a lower expense ratio. XLI delivered stronger 1-year returns. IVV offers more diversification with 505 holdings.
Side-by-Side Comparison
| Metric | IVV | XLI | Winner |
|---|---|---|---|
| Expense Ratio | 0.03% | 0.08% | |
| AUM | $865.2B | $33.4B | |
| Dividend Yield | 1.09% | 1.11% | |
| Holdings | 508 | 82 | |
| YTD Return | +14.50% | +18.22% | |
| 1Y Return | +22.02% | +23.42% | |
| 3Y Return (annualized) | +21.80% | +21.23% | |
| 5Y Return (annualized) | +13.37% | +13.80% | |
| Volatility (annualized) | 15.1% | 18.7% | |
| Max Drawdown | -56.5% | -63.3% | |
| Fund Family | iShares by BlackRock (US) | SPDR State Street Global Advisors | |
| Category | Equity | Equity | |
| Inception | May 15, 2000 | Dec 16, 1998 |
IVV vs XLI Performance
iShares Core S&P 500 ETF (IVV) is a ETF from iShares by BlackRock (US) and State Street Industrial Select Sector SPDR ETF (XLI) is a ETF from SPDR State Street Global Advisors. Over the past year IVV returned +22.02% while XLI returned +23.42%. Year to date, IVV is up 14.50% versus a gain of 18.22% for XLI.
Over three years, IVV compounded at +21.80% per year against +21.23% for XLI; over five years the annualized figures are +13.37% and +13.80% respectively. Across the full 26-year window we track, XLI has the edge at +8.12% annualized vs +7.07%. Past performance does not guarantee future results.
Risk: Volatility and Drawdowns
XLI has been the more volatile fund, with annualized monthly volatility of 18.7% 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 -63.3% for XLI. 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 0.90. They move almost in lockstep, so holding both mostly duplicates the same exposure.
Fees and Cost Over Time
IVV charges 0.03% per year while XLI 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 1.11% for XLI.
Holdings Overlap
IVV and XLI share 80 holdings out of 507 unique holdings combined, representing a 8.3% weight overlap.
Moderate overlap means holding both could provide meaningful diversification benefits.
Frequently Asked Questions
Which is cheaper, IVV or XLI?
IVV has an expense ratio of 0.03% while XLI 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 XLI?
Over the past year IVV returned +22.02% vs +23.42% for XLI, so XLI leads on 1-year performance. Over the longest common window we track (26 years), IVV annualized +7.07% vs +8.12% for XLI. Past performance does not guarantee future results.
Which is riskier, IVV or XLI?
XLI has been the more volatile fund at 18.7% annualized versus 15.1% for IVV. Worst drawdown: IVV -56.5% vs XLI -63.3%.
Should I hold both IVV and XLI?
IVV and XLI have a monthly-return correlation of 0.90, so they move almost identically. Holding both adds little diversification - most investors pick one, usually on fees or the specific index tracked.
What is the holdings overlap between IVV and XLI?
IVV and XLI share 80 common holdings with a 8.3% weight overlap. Combined, they hold 507 unique securities.
Which pays a higher dividend, IVV or XLI?
IVV yields 1.09% while XLI yields 1.11%, so XLI currently pays the higher dividend yield.
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