FMY vs IVV
FMY vs IVV
First Trust Mortgage Income Fund vs iShares Core S&P 500 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 | FMY | IVV | Winner |
|---|---|---|---|
| Expense Ratio | 1.35% | 0.03% | |
| AUM | $52M | $865.2B | |
| Dividend Yield | 6.29% | 1.09% | |
| Holdings | 166 | 508 | |
| YTD Return | -1.39% | +11.54% | |
| 1Y Return | -0.57% | +21.48% | |
| 3Y Return (annualized) | +7.97% | +20.86% | |
| 5Y Return (annualized) | +2.70% | +13.02% | |
| Volatility (annualized) | 8.9% | 15.1% | |
| Max Drawdown | -47.3% | -56.5% | |
| Fund Family | First Trust Portfolios (US) | iShares by BlackRock (US) | |
| Category | Fixed Income | Equity | |
| Inception | May 25, 2005 | May 15, 2000 |
FMY vs IVV Performance
First Trust Mortgage Income Fund (FMY) is a ETF from First Trust Portfolios (US) and iShares Core S&P 500 ETF (IVV) is a ETF from iShares by BlackRock (US). Over the past year FMY returned -0.57% while IVV returned +21.48%. Year to date, FMY is down 1.39% versus a gain of 11.54% for IVV.
Over three years, FMY compounded at +7.97% per year against +20.86% for IVV; over five years the annualized figures are +2.70% and +13.02% respectively. Across the full 21-year window we track, IVV has the edge at +6.97% annualized vs -0.96%. 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 8.9% for FMY. 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 -47.3% for FMY 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 0.42. They move independently enough that combining them can meaningfully diversify a portfolio.
Fees and Cost Over Time
FMY charges 1.35% per year while IVV charges 0.03%. On a $10,000 position that is $135 vs $3 annually, a gap of $132 per year that compounds over a long holding period. On income, FMY currently yields 6.29% against 1.09% for IVV.
Holdings Overlap
FMY and IVV share 0 holdings out of 534 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, FMY or IVV?
FMY has an expense ratio of 1.35% while IVV charges 0.03%. IVV is the cheaper option. On a $10,000 investment, that is $132 per year of difference.
Which performed better, FMY or IVV?
Over the past year FMY returned -0.57% vs +21.48% for IVV, so IVV leads on 1-year performance. Over the longest common window we track (21 years), FMY annualized -0.96% vs +6.97% for IVV. Past performance does not guarantee future results.
Which is riskier, FMY or IVV?
IVV has been the more volatile fund at 15.1% annualized versus 8.9% for FMY. Worst drawdown: FMY -47.3% vs IVV -56.5%.
Should I hold both FMY and IVV?
FMY and IVV have a monthly-return correlation of 0.42, so combining them can provide real diversification depending on your allocation goals.
What is the holdings overlap between FMY and IVV?
FMY and IVV share 0 common holdings with a 0.0% weight overlap. Combined, they hold 534 unique securities.
Which pays a higher dividend, FMY or IVV?
FMY yields 6.29% while IVV yields 1.09%, so FMY currently pays the higher dividend yield.
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