IVV vs XLY
iShares Core S&P 500 ETF vs State Street Consumer Discretionary 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 | XLY | Winner |
|---|---|---|---|
| Expense Ratio | 0.03% | 0.08% | |
| AUM | $865.2B | $21.5B | |
| Dividend Yield | 1.09% | 0.77% | |
| Holdings | 508 | 51 | |
| YTD Return | +14.50% | +0.49% | |
| 1Y Return | +22.02% | +3.87% | |
| 3Y Return (annualized) | +21.80% | +12.57% | |
| 5Y Return (annualized) | +13.37% | +6.34% | |
| Volatility (annualized) | 15.1% | 19.2% | |
| Max Drawdown | -56.5% | -60.1% | |
| Fund Family | iShares by BlackRock (US) | SPDR State Street Global Advisors | |
| Category | Equity | Equity | |
| Inception | May 15, 2000 | Dec 16, 1998 |
IVV vs XLY Performance
iShares Core S&P 500 ETF (IVV) is a ETF from iShares by BlackRock (US) and State Street Consumer Discretionary Select Sector SPDR ETF (XLY) is a ETF from SPDR State Street Global Advisors. Over the past year IVV returned +22.02% while XLY returned +3.87%. Year to date, IVV is up 14.50% versus a gain of 0.49% for XLY.
Over three years, IVV compounded at +21.80% per year against +12.57% for XLY; over five years the annualized figures are +13.37% and +6.34% respectively. Across the full 26-year window we track, XLY has the edge at +8.58% annualized vs +7.07%. Past performance does not guarantee future results.
Risk: Volatility and Drawdowns
XLY has been the more volatile fund, with annualized monthly volatility of 19.2% 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 -60.1% for XLY. 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 0.87. They usually move together, but the gap leaves some room for diversification.
Fees and Cost Over Time
IVV charges 0.03% per year while XLY 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 0.77% for XLY.
Holdings Overlap
IVV and XLY share 46 holdings out of 507 unique holdings combined, representing a 9.1% weight overlap.
Moderate overlap means holding both could provide meaningful diversification benefits.
Frequently Asked Questions
Which is cheaper, IVV or XLY?
IVV has an expense ratio of 0.03% while XLY 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 XLY?
Over the past year IVV returned +22.02% vs +3.87% for XLY, so IVV leads on 1-year performance. Over the longest common window we track (26 years), IVV annualized +7.07% vs +8.58% for XLY. Past performance does not guarantee future results.
Which is riskier, IVV or XLY?
XLY has been the more volatile fund at 19.2% annualized versus 15.1% for IVV. Worst drawdown: IVV -56.5% vs XLY -60.1%.
Should I hold both IVV and XLY?
IVV and XLY have a monthly-return correlation of 0.87, so combining them can provide real diversification depending on your allocation goals.
What is the holdings overlap between IVV and XLY?
IVV and XLY share 46 common holdings with a 9.1% weight overlap. Combined, they hold 507 unique securities.
Which pays a higher dividend, IVV or XLY?
IVV yields 1.09% while XLY yields 0.77%, so IVV currently pays the higher dividend yield.
Popular ETF Comparisons
Get Full ETF Analytics
Access complete holdings data, overlap analysis, screener tools, and more with FundXLS.