IVV vs MMU
IVV vs MMU
iShares Core S&P 500 ETF vs Western Asset Managed Municipals Fund Inc.
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 | IVV | MMU | Winner |
|---|---|---|---|
| Expense Ratio | 0.03% | 1.34% | |
| AUM | $865.2B | $587M | |
| Dividend Yield | 1.09% | 5.92% | |
| Holdings | 508 | 427 | |
| YTD Return | +13.80% | +0.69% | |
| 1Y Return | +23.70% | +8.93% | |
| 3Y Return (annualized) | +21.49% | +7.70% | |
| 5Y Return (annualized) | +13.43% | -0.47% | |
| Volatility (annualized) | 15.1% | 11.1% | |
| Max Drawdown | -56.5% | -41.0% | |
| Fund Family | iShares by BlackRock (US) | Franklin Templeton Investments (US) | |
| Category | Equity | Tax Preferred | |
| Inception | May 15, 2000 | Jun 26, 1992 |
IVV vs MMU Performance
iShares Core S&P 500 ETF (IVV) is a ETF from iShares by BlackRock (US) and Western Asset Managed Municipals Fund Inc. (MMU) is a ETF from Franklin Templeton Investments (US). Over the past year IVV returned +23.70% while MMU returned +8.93%. Year to date, IVV is up 13.80% versus a gain of 0.69% for MMU.
Over three years, IVV compounded at +21.49% per year against +7.70% for MMU; over five years the annualized figures are +13.43% and -0.47% respectively. Across the full 26-year window we track, IVV has the edge at +7.05% annualized vs +0.32%. 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 11.1% for MMU. 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 -41.0% for MMU. 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 0.25. They move independently enough that combining them can meaningfully diversify a portfolio.
Fees and Cost Over Time
IVV charges 0.03% per year while MMU charges 1.34%. On a $10,000 position that is $3 vs $134 annually, a gap of $131 per year that compounds over a long holding period. On income, IVV currently yields 1.09% against 5.92% for MMU.
Holdings Overlap
IVV and MMU 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, IVV or MMU?
IVV has an expense ratio of 0.03% while MMU charges 1.34%. IVV is the cheaper option. On a $10,000 investment, that is $131 per year of difference.
Which performed better, IVV or MMU?
Over the past year IVV returned +23.70% vs +8.93% for MMU, so IVV leads on 1-year performance. Over the longest common window we track (26 years), IVV annualized +7.05% vs +0.32% for MMU. Past performance does not guarantee future results.
Which is riskier, IVV or MMU?
IVV has been the more volatile fund at 15.1% annualized versus 11.1% for MMU. Worst drawdown: IVV -56.5% vs MMU -41.0%.
Should I hold both IVV and MMU?
IVV and MMU have a monthly-return correlation of 0.25, so combining them can provide real diversification depending on your allocation goals.
What is the holdings overlap between IVV and MMU?
IVV and MMU share 0 common holdings with a 0.0% weight overlap. Combined, they hold 726 unique securities.
Which pays a higher dividend, IVV or MMU?
IVV yields 1.09% while MMU yields 5.92%, so MMU currently pays the higher dividend yield.
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