FRA vs IVV
FRA vs IVV
Blackrock Floating Rate Income Strategies Fund Inc 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 | FRA | IVV | Winner |
|---|---|---|---|
| Expense Ratio | 2.97% | 0.03% | |
| AUM | $402M | $865.2B | |
| Dividend Yield | 13.06% | 1.09% | |
| Holdings | 469 | 508 | |
| YTD Return | -0.31% | +13.80% | |
| 1Y Return | -6.63% | +23.70% | |
| 3Y Return (annualized) | +7.56% | +21.49% | |
| 5Y Return (annualized) | +6.35% | +13.43% | |
| Volatility (annualized) | 14.5% | 15.1% | |
| Max Drawdown | -51.4% | -56.5% | |
| Fund Family | BlackRock, Inc. (US) | iShares by BlackRock (US) | |
| Category | Fixed Income | Equity | |
| Inception | Oct 31, 2003 | May 15, 2000 |
FRA vs IVV Performance
Blackrock Floating Rate Income Strategies Fund Inc (FRA) 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 FRA returned -6.63% while IVV returned +23.70%. Year to date, FRA is down 0.31% versus a gain of 13.80% for IVV.
Over three years, FRA compounded at +7.56% per year against +21.49% for IVV; over five years the annualized figures are +6.35% and +13.43% respectively. Across the full 23-year window we track, IVV has the edge at +7.05% annualized vs +5.14%. 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 14.5% for FRA. 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 -51.4% for FRA 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 0.59. They move independently enough that combining them can meaningfully diversify a portfolio.
Fees and Cost Over Time
FRA charges 2.97% per year while IVV charges 0.03%. On a $10,000 position that is $297 vs $3 annually, a gap of $294 per year that compounds over a long holding period. On income, FRA currently yields 13.06% against 1.09% for IVV.
Holdings Overlap
FRA and IVV share 0 holdings out of 726 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, FRA or IVV?
FRA has an expense ratio of 2.97% while IVV charges 0.03%. IVV is the cheaper option. On a $10,000 investment, that is $294 per year of difference.
Which performed better, FRA or IVV?
Over the past year FRA returned -6.63% vs +23.70% for IVV, so IVV leads on 1-year performance. Over the longest common window we track (23 years), FRA annualized +5.14% vs +7.05% for IVV. Past performance does not guarantee future results.
Which is riskier, FRA or IVV?
IVV has been the more volatile fund at 15.1% annualized versus 14.5% for FRA. Worst drawdown: FRA -51.4% vs IVV -56.5%.
Should I hold both FRA and IVV?
FRA and IVV have a monthly-return correlation of 0.59, so combining them can provide real diversification depending on your allocation goals.
What is the holdings overlap between FRA and IVV?
FRA and IVV share 0 common holdings with a 0.0% weight overlap. Combined, they hold 726 unique securities.
Which pays a higher dividend, FRA or IVV?
FRA yields 13.06% while IVV yields 1.09%, so FRA currently pays the higher dividend yield.
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