IVV vs XLII
iShares Core S&P 500 ETF vs State Street Industrial Select Sector SPDR Premium Income 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 | XLII | Winner |
|---|---|---|---|
| Expense Ratio | 0.03% | 0.35% | |
| AUM | $907.0B | $11M | |
| Dividend Yield | 1.10% | 12.08% | |
| Holdings | 508 | 5 | |
| YTD Return | +12.76% | +10.81% | |
| 1Y Return | +20.63% | +18.46% | |
| 3Y Return (annualized) | +21.71% | - | |
| 5Y Return (annualized) | +12.87% | - | |
| Volatility (annualized) | 15.1% | 11.6% | |
| Max Drawdown | -56.5% | -10.1% | |
| Fund Family | iShares by BlackRock (US) | State Street Investment Management | |
| Category | Equity | Equity | |
| Inception | May 15, 2000 | Jul 29, 2025 |
IVV vs XLII Performance
iShares Core S&P 500 ETF (IVV) is a ETF from iShares by BlackRock (US) and State Street Industrial Select Sector SPDR Premium Income ETF (XLII) is a ETF from State Street Investment Management. Over the past year IVV returned +20.63% while XLII returned +18.46%. Year to date, IVV is up 12.76% versus a gain of 10.81% for XLII.
Risk: Volatility and Drawdowns
IVV has been the more volatile fund, with annualized monthly volatility of 15.1% compared with 11.6% for XLII. 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 -10.1% for XLII. 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 0.56. They move independently enough that combining them can meaningfully diversify a portfolio.
Fees and Cost Over Time
IVV charges 0.03% per year while XLII charges 0.35%. On a $10,000 position that is $3 vs $35 annually, a gap of $32 per year that compounds over a long holding period. On income, IVV currently yields 1.10% against 12.08% for XLII.
Holdings Overlap
IVV and XLII share 0 holdings out of 507 unique holdings combined, representing a 0.0% weight overlap.
Moderate overlap means holding both could provide meaningful diversification benefits.
Frequently Asked Questions
Which is cheaper, IVV or XLII?
IVV has an expense ratio of 0.03% while XLII charges 0.35%. IVV is the cheaper option. On a $10,000 investment, that is $32 per year of difference.
Which performed better, IVV or XLII?
Over the past year IVV returned +20.63% vs +18.46% for XLII, so IVV leads on 1-year performance. Over the longest common window we track (1 years), IVV annualized +6.99% vs +17.82% for XLII. Past performance does not guarantee future results.
Which is riskier, IVV or XLII?
IVV has been the more volatile fund at 15.1% annualized versus 11.6% for XLII. Worst drawdown: IVV -56.5% vs XLII -10.1%.
Should I hold both IVV and XLII?
IVV and XLII have a monthly-return correlation of 0.56, so combining them can provide real diversification depending on your allocation goals.
What is the holdings overlap between IVV and XLII?
IVV and XLII share 0 common holdings with a 0.0% weight overlap. Combined, they hold 507 unique securities.
Which pays a higher dividend, IVV or XLII?
IVV yields 1.10% while XLII yields 12.08%, so XLII currently pays the higher dividend yield.
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