IVV vs ZTAX
iShares Core S&P 500 ETF vs X-Square Municipal Income Tax Free 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 | ZTAX | Winner |
|---|---|---|---|
| Expense Ratio | 0.03% | 0.92% | |
| AUM | $907.0B | $5M | |
| Dividend Yield | 1.10% | 4.72% | |
| Holdings | 508 | 17 | |
| YTD Return | +13.51% | +1.54% | |
| 1Y Return | +20.65% | +7.18% | |
| 3Y Return (annualized) | +21.94% | +5.83% | |
| 5Y Return (annualized) | +12.95% | - | |
| Volatility (annualized) | 15.1% | 8.2% | |
| Max Drawdown | -56.5% | -15.3% | |
| Fund Family | iShares by BlackRock (US) | X-Square Capital | |
| Category | Equity | Tax Preferred | |
| Inception | May 15, 2000 | May 17, 2023 |
IVV vs ZTAX Performance
iShares Core S&P 500 ETF (IVV) is a ETF from iShares by BlackRock (US) and X-Square Municipal Income Tax Free ETF (ZTAX) is a ETF from X-Square Capital. Over the past year IVV returned +20.65% while ZTAX returned +7.18%. Year to date, IVV is up 13.51% versus a gain of 1.54% for ZTAX.
Over three years, IVV compounded at +21.94% per year against +5.83% for ZTAX. Across the full 3-year window we track, IVV has the edge at +7.02% annualized vs +6.05%. 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 8.2% for ZTAX. 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 -15.3% for ZTAX. 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 0.26. They move independently enough that combining them can meaningfully diversify a portfolio.
Fees and Cost Over Time
IVV charges 0.03% per year while ZTAX charges 0.92%. On a $10,000 position that is $3 vs $92 annually, a gap of $89 per year that compounds over a long holding period. On income, IVV currently yields 1.10% against 4.72% for ZTAX.
Holdings Overlap
IVV and ZTAX share 0 holdings out of 517 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 ZTAX?
IVV has an expense ratio of 0.03% while ZTAX charges 0.92%. IVV is the cheaper option. On a $10,000 investment, that is $89 per year of difference.
Which performed better, IVV or ZTAX?
Over the past year IVV returned +20.65% vs +7.18% for ZTAX, so IVV leads on 1-year performance. Over the longest common window we track (3 years), IVV annualized +7.02% vs +6.05% for ZTAX. Past performance does not guarantee future results.
Which is riskier, IVV or ZTAX?
IVV has been the more volatile fund at 15.1% annualized versus 8.2% for ZTAX. Worst drawdown: IVV -56.5% vs ZTAX -15.3%.
Should I hold both IVV and ZTAX?
IVV and ZTAX have a monthly-return correlation of 0.26, so combining them can provide real diversification depending on your allocation goals.
What is the holdings overlap between IVV and ZTAX?
IVV and ZTAX share 0 common holdings with a 0.0% weight overlap. Combined, they hold 517 unique securities.
Which pays a higher dividend, IVV or ZTAX?
IVV yields 1.10% while ZTAX yields 4.72%, so ZTAX currently pays the higher dividend yield.
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