IVV vs XLP

Quick Verdict

IVV has a lower expense ratio. IVV delivered stronger 1-year returns. IVV offers more diversification with 505 holdings.

Lower Fees: IVVHigher Returns: IVVMore Diversified: IVV

Side-by-Side Comparison

MetricIVVXLPWinner
Expense Ratio0.03%0.08%
AUM$865.2B$14.5B
Dividend Yield1.09%2.64%
Holdings50839
YTD Return+13.72%+10.89%
1Y Return+21.64%+5.82%
3Y Return (annualized)+21.55%+7.45%
5Y Return (annualized)+13.27%+6.19%
Volatility (annualized)15.1%12.5%
Max Drawdown-56.5%-37.8%
Fund FamilyiShares by BlackRock (US)SPDR State Street Global Advisors
CategoryEquityEquity
InceptionMay 15, 2000Dec 16, 1998

IVV vs XLP Performance

iShares Core S&P 500 ETF (IVV) is a ETF from iShares by BlackRock (US) and State Street Consumer Staples Select Sector SPDR ETF (XLP) is a ETF from SPDR State Street Global Advisors. Over the past year IVV returned +21.64% while XLP returned +5.82%. Year to date, IVV is up 13.72% versus a gain of 10.89% for XLP.

Over three years, IVV compounded at +21.55% per year against +7.45% for XLP; over five years the annualized figures are +13.27% and +6.19% respectively. Across the full 26-year window we track, IVV has the edge at +7.04% annualized vs +4.86%. Past performance does not guarantee future results.

Risk: Volatility and Drawdowns

IVV has been the more volatile fund, with annualized monthly volatility of 15.1% compared with 12.5% for XLP. 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 -37.8% for XLP. 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 0.66. They move independently enough that combining them can meaningfully diversify a portfolio.

Fees and Cost Over Time

IVV charges 0.03% per year while XLP 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 2.64% for XLP.

Holdings Overlap

4.6%overlap

IVV and XLP share 34 holdings out of 506 unique holdings combined, representing a 4.6% weight overlap.

Moderate overlap means holding both could provide meaningful diversification benefits.

Top Shared Holdings

StockWeight in IVVWeight in XLPDifference
WMT0.75%10.43%9.68%
COST0.64%9.07%8.43%
PG0.53%7.48%6.95%
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Frequently Asked Questions

Which is cheaper, IVV or XLP?

IVV has an expense ratio of 0.03% while XLP 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 XLP?

Over the past year IVV returned +21.64% vs +5.82% for XLP, so IVV leads on 1-year performance. Over the longest common window we track (26 years), IVV annualized +7.04% vs +4.86% for XLP. Past performance does not guarantee future results.

Which is riskier, IVV or XLP?

IVV has been the more volatile fund at 15.1% annualized versus 12.5% for XLP. Worst drawdown: IVV -56.5% vs XLP -37.8%.

Should I hold both IVV and XLP?

IVV and XLP have a monthly-return correlation of 0.66, so combining them can provide real diversification depending on your allocation goals.

What is the holdings overlap between IVV and XLP?

IVV and XLP share 34 common holdings with a 4.6% weight overlap. Combined, they hold 506 unique securities.

Which pays a higher dividend, IVV or XLP?

IVV yields 1.09% while XLP yields 2.64%, so XLP currently pays the higher dividend yield.

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