IVV vs LMBS
IVV vs LMBS
iShares Core S&P 500 ETF vs First Trust Low Duration Opportunities ETF
Quick Verdict
IVV has a lower expense ratio. IVV delivered stronger 1-year returns. LMBS offers more diversification with 764 holdings.
Side-by-Side Comparison
| Metric | IVV | LMBS | Winner |
|---|---|---|---|
| Expense Ratio | 0.03% | 0.65% | |
| AUM | $865.2B | $6.4B | |
| Dividend Yield | 1.09% | 4.10% | |
| Holdings | 508 | 1,213 | |
| YTD Return | +9.93% | +1.47% | |
| 1Y Return | +19.59% | +4.49% | |
| 3Y Return (annualized) | +19.41% | +5.63% | |
| 5Y Return (annualized) | +12.89% | +2.99% | |
| Volatility (annualized) | 15.1% | 2.2% | |
| Max Drawdown | -56.5% | -8.5% | |
| Fund Family | iShares by BlackRock (US) | First Trust Portfolios (US) | |
| Category | Equity | Fixed Income | |
| Inception | May 15, 2000 | Nov 4, 2014 |
IVV vs LMBS Performance
iShares Core S&P 500 ETF (IVV) is a ETF from iShares by BlackRock (US) and First Trust Low Duration Opportunities ETF (LMBS) is a ETF from First Trust Portfolios (US). Over the past year IVV returned +19.59% while LMBS returned +4.49%. Year to date, IVV is up 9.93% versus a gain of 1.47% for LMBS.
Over three years, IVV compounded at +19.41% per year against +5.63% for LMBS; over five years the annualized figures are +12.89% and +2.99% respectively. Across the full 12-year window we track, IVV has the edge at +6.91% annualized vs +1.49%. 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 2.2% for LMBS. 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 -8.5% for LMBS. 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 0.41. They move independently enough that combining them can meaningfully diversify a portfolio.
Fees and Cost Over Time
IVV charges 0.03% per year while LMBS charges 0.65%. On a $10,000 position that is $3 vs $65 annually, a gap of $62 per year that compounds over a long holding period. On income, IVV currently yields 1.09% against 4.10% for LMBS.
Holdings Overlap
IVV and LMBS share 0 holdings out of 1269 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 LMBS?
IVV has an expense ratio of 0.03% while LMBS charges 0.65%. IVV is the cheaper option. On a $10,000 investment, that is $62 per year of difference.
Which performed better, IVV or LMBS?
Over the past year IVV returned +19.59% vs +4.49% for LMBS, so IVV leads on 1-year performance. Over the longest common window we track (12 years), IVV annualized +6.91% vs +1.49% for LMBS. Past performance does not guarantee future results.
Which is riskier, IVV or LMBS?
IVV has been the more volatile fund at 15.1% annualized versus 2.2% for LMBS. Worst drawdown: IVV -56.5% vs LMBS -8.5%.
Should I hold both IVV and LMBS?
IVV and LMBS have a monthly-return correlation of 0.41, so combining them can provide real diversification depending on your allocation goals.
What is the holdings overlap between IVV and LMBS?
IVV and LMBS share 0 common holdings with a 0.0% weight overlap. Combined, they hold 1269 unique securities.
Which pays a higher dividend, IVV or LMBS?
IVV yields 1.09% while LMBS yields 4.10%, so LMBS currently pays the higher dividend yield.
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