IVV vs XLU
iShares Core S&P 500 ETF vs State Street Utilities Select Sector SPDR ETF
Quick Verdict
IVV has a lower expense ratio. IVV delivered stronger 1-year returns. IVV offers more diversification with 505 holdings.
Side-by-Side Comparison
| Metric | IVV | XLU | Winner |
|---|---|---|---|
| Expense Ratio | 0.03% | 0.08% | |
| AUM | $865.2B | $23.5B | |
| Dividend Yield | 1.09% | 2.64% | |
| Holdings | 508 | 34 | |
| YTD Return | +13.43% | +2.40% | |
| 1Y Return | +22.61% | +4.40% | |
| 3Y Return (annualized) | +21.47% | +14.27% | |
| 5Y Return (annualized) | +13.26% | +8.29% | |
| Volatility (annualized) | 15.1% | 15.1% | |
| Max Drawdown | -56.5% | -55.7% | |
| Fund Family | iShares by BlackRock (US) | SPDR State Street Global Advisors | |
| Category | Equity | Equity | |
| Inception | May 15, 2000 | Dec 16, 1998 |
IVV vs XLU Performance
iShares Core S&P 500 ETF (IVV) is a ETF from iShares by BlackRock (US) and State Street Utilities Select Sector SPDR ETF (XLU) is a ETF from SPDR State Street Global Advisors. Over the past year IVV returned +22.61% while XLU returned +4.40%. Year to date, IVV is up 13.43% versus a gain of 2.40% for XLU.
Over three years, IVV compounded at +21.47% per year against +14.27% for XLU; over five years the annualized figures are +13.26% and +8.29% respectively. Across the full 26-year window we track, IVV has the edge at +7.03% annualized vs +4.59%. 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 15.1% for XLU. 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 -55.7% for XLU. 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 0.47. They move independently enough that combining them can meaningfully diversify a portfolio.
Fees and Cost Over Time
IVV charges 0.03% per year while XLU 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 XLU.
Holdings Overlap
IVV and XLU share 31 holdings out of 506 unique holdings combined, representing a 2.2% weight overlap.
Moderate overlap means holding both could provide meaningful diversification benefits.
Frequently Asked Questions
Which is cheaper, IVV or XLU?
IVV has an expense ratio of 0.03% while XLU 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 XLU?
Over the past year IVV returned +22.61% vs +4.40% for XLU, so IVV leads on 1-year performance. Over the longest common window we track (26 years), IVV annualized +7.03% vs +4.59% for XLU. Past performance does not guarantee future results.
Which is riskier, IVV or XLU?
IVV has been the more volatile fund at 15.1% annualized versus 15.1% for XLU. Worst drawdown: IVV -56.5% vs XLU -55.7%.
Should I hold both IVV and XLU?
IVV and XLU have a monthly-return correlation of 0.47, so combining them can provide real diversification depending on your allocation goals.
What is the holdings overlap between IVV and XLU?
IVV and XLU share 31 common holdings with a 2.2% weight overlap. Combined, they hold 506 unique securities.
Which pays a higher dividend, IVV or XLU?
IVV yields 1.09% while XLU yields 2.64%, so XLU currently pays the higher dividend yield.
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