IVV vs XLV
iShares Core S&P 500 ETF vs State Street Health Care Select Sector SPDR ETF
Quick Verdict
IVV has a lower expense ratio. XLV delivered stronger 1-year returns. IVV offers more diversification with 508 holdings.
Side-by-Side Comparison
| Metric | IVV | XLV | Winner |
|---|---|---|---|
| Expense Ratio | 0.03% | 0.08% | |
| AUM | $907.0B | $43.9B | |
| Dividend Yield | 1.10% | 1.56% | |
| Holdings | 508 | 63 | |
| YTD Return | +12.28% | +11.80% | |
| 1Y Return | +20.94% | +27.56% | |
| 3Y Return (annualized) | +21.81% | +10.70% | |
| 5Y Return (annualized) | +13.05% | +6.55% | |
| Volatility (annualized) | 15.1% | 14.2% | |
| Max Drawdown | -56.5% | -40.6% | |
| Fund Family | iShares by BlackRock (US) | SPDR State Street Global Advisors | |
| Category | Equity | Equity | |
| Inception | May 15, 2000 | Dec 16, 1998 |
IVV vs XLV Performance
iShares Core S&P 500 ETF (IVV) is a ETF from iShares by BlackRock (US) and State Street Health Care Select Sector SPDR ETF (XLV) is a ETF from SPDR State Street Global Advisors. Over the past year IVV returned +20.94% while XLV returned +27.56%. Year to date, IVV is up 12.28% versus a gain of 11.80% for XLV.
Over three years, IVV compounded at +21.81% per year against +10.70% for XLV; over five years the annualized figures are +13.05% and +6.55% respectively. Across the full 26-year window we track, XLV has the edge at +7.57% annualized vs +6.98%. 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 14.2% for XLV. 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 -40.6% for XLV. 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 0.75. They usually move together, but the gap leaves some room for diversification.
Fees and Cost Over Time
IVV charges 0.03% per year while XLV 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 1.10% against 1.56% for XLV.
Holdings Overlap
IVV and XLV share 59 holdings out of 506 unique holdings combined, representing a 8.9% weight overlap.
Moderate overlap means holding both could provide meaningful diversification benefits.
Frequently Asked Questions
Which is cheaper, IVV or XLV?
IVV has an expense ratio of 0.03% while XLV 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 XLV?
Over the past year IVV returned +20.94% vs +27.56% for XLV, so XLV leads on 1-year performance. Over the longest common window we track (26 years), IVV annualized +6.98% vs +7.57% for XLV. Past performance does not guarantee future results.
Which is riskier, IVV or XLV?
IVV has been the more volatile fund at 15.1% annualized versus 14.2% for XLV. Worst drawdown: IVV -56.5% vs XLV -40.6%.
Should I hold both IVV and XLV?
IVV and XLV have a monthly-return correlation of 0.75, so combining them can provide real diversification depending on your allocation goals.
What is the holdings overlap between IVV and XLV?
IVV and XLV share 59 common holdings with a 8.9% weight overlap. Combined, they hold 506 unique securities.
Which pays a higher dividend, IVV or XLV?
IVV yields 1.10% while XLV yields 1.56%, so XLV currently pays the higher dividend yield.
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