BIT vs IVV
BIT vs IVV
BlackRock Multi-Sector Income Trust vs iShares Core S&P 500 ETF
Quick Verdict
IVV has a lower expense ratio. IVV delivered stronger 1-year returns. BIT offers more diversification with 955 holdings.
Side-by-Side Comparison
| Metric | BIT | IVV | Winner |
|---|---|---|---|
| Expense Ratio | 4.26% | 0.03% | |
| AUM | $746M | $865.2B | |
| Dividend Yield | 11.16% | 1.09% | |
| Holdings | 1,589 | 508 | |
| YTD Return | -0.16% | +11.54% | |
| 1Y Return | -7.06% | +21.48% | |
| 3Y Return (annualized) | +3.95% | +20.86% | |
| 5Y Return (annualized) | +1.58% | +13.02% | |
| Volatility (annualized) | 13.1% | 15.1% | |
| Max Drawdown | -53.3% | -56.5% | |
| Fund Family | BlackRock, Inc. (US) | iShares by BlackRock (US) | |
| Category | Fixed Income | Equity | |
| Inception | Feb 25, 2013 | May 15, 2000 |
BIT vs IVV Performance
BlackRock Multi-Sector Income Trust (BIT) is a ETF from BlackRock, Inc. (US) and iShares Core S&P 500 ETF (IVV) is a ETF from iShares by BlackRock (US). Over the past year BIT returned -7.06% while IVV returned +21.48%. Year to date, BIT is down 0.16% versus a gain of 11.54% for IVV.
Over three years, BIT compounded at +3.95% per year against +20.86% for IVV; over five years the annualized figures are +1.58% and +13.02% respectively. Across the full 13-year window we track, IVV has the edge at +6.97% annualized vs +0.37%. 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 13.1% for BIT. 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 -53.3% for BIT and -56.5% for IVV. 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
BIT charges 4.26% per year while IVV charges 0.03%. On a $10,000 position that is $426 vs $3 annually, a gap of $423 per year that compounds over a long holding period. On income, BIT currently yields 11.16% against 1.09% for IVV.
Holdings Overlap
BIT and IVV share 0 holdings out of 1460 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, BIT or IVV?
BIT has an expense ratio of 4.26% while IVV charges 0.03%. IVV is the cheaper option. On a $10,000 investment, that is $423 per year of difference.
Which performed better, BIT or IVV?
Over the past year BIT returned -7.06% vs +21.48% for IVV, so IVV leads on 1-year performance. Over the longest common window we track (13 years), BIT annualized +0.37% vs +6.97% for IVV. Past performance does not guarantee future results.
Which is riskier, BIT or IVV?
IVV has been the more volatile fund at 15.1% annualized versus 13.1% for BIT. Worst drawdown: BIT -53.3% vs IVV -56.5%.
Should I hold both BIT and IVV?
BIT and IVV 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 BIT and IVV?
BIT and IVV share 0 common holdings with a 0.0% weight overlap. Combined, they hold 1460 unique securities.
Which pays a higher dividend, BIT or IVV?
BIT yields 11.16% while IVV yields 1.09%, so BIT currently pays the higher dividend yield.
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