HIO vs IVV
HIO vs IVV
Western Asset High Income Opportunity 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 | HIO | IVV | Winner |
|---|---|---|---|
| Expense Ratio | 0.94% | 0.03% | |
| AUM | $365M | $865.2B | |
| Dividend Yield | 10.92% | 1.09% | |
| Holdings | 338 | 508 | |
| YTD Return | +2.96% | +13.52% | |
| 1Y Return | +0.22% | +23.63% | |
| 3Y Return (annualized) | +8.77% | +21.26% | |
| 5Y Return (annualized) | +2.32% | +13.52% | |
| Volatility (annualized) | 13.4% | 15.1% | |
| Max Drawdown | -76.3% | -56.5% | |
| Fund Family | Franklin Templeton Investments (US) | iShares by BlackRock (US) | |
| Category | Fixed Income | Equity | |
| Inception | Oct 22, 1993 | May 15, 2000 |
HIO vs IVV Performance
Western Asset High Income Opportunity Fund Inc. (HIO) is a ETF from Franklin Templeton Investments (US) and iShares Core S&P 500 ETF (IVV) is a ETF from iShares by BlackRock (US). Over the past year HIO returned +0.22% while IVV returned +23.63%. Year to date, HIO is up 2.96% versus a gain of 13.52% for IVV.
Over three years, HIO compounded at +8.77% per year against +21.26% for IVV; over five years the annualized figures are +2.32% and +13.52% respectively. Across the full 26-year window we track, IVV has the edge at +7.04% annualized vs -2.04%. 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 13.4% for HIO. 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 -76.3% for HIO 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
HIO charges 0.94% per year while IVV charges 0.03%. On a $10,000 position that is $94 vs $3 annually, a gap of $91 per year that compounds over a long holding period. On income, HIO currently yields 10.92% against 1.09% for IVV.
Holdings Overlap
HIO and IVV share 0 holdings out of 718 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, HIO or IVV?
HIO has an expense ratio of 0.94% while IVV charges 0.03%. IVV is the cheaper option. On a $10,000 investment, that is $91 per year of difference.
Which performed better, HIO or IVV?
Over the past year HIO returned +0.22% vs +23.63% for IVV, so IVV leads on 1-year performance. Over the longest common window we track (26 years), HIO annualized -2.04% vs +7.04% for IVV. Past performance does not guarantee future results.
Which is riskier, HIO or IVV?
IVV has been the more volatile fund at 15.1% annualized versus 13.4% for HIO. Worst drawdown: HIO -76.3% vs IVV -56.5%.
Should I hold both HIO and IVV?
HIO 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 HIO and IVV?
HIO and IVV share 0 common holdings with a 0.0% weight overlap. Combined, they hold 718 unique securities.
Which pays a higher dividend, HIO or IVV?
HIO yields 10.92% while IVV yields 1.09%, so HIO currently pays the higher dividend yield.
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