IVV vs MSD
IVV vs MSD
iShares Core S&P 500 ETF vs Morgan Stanley Emerging Markets Debt 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 | MSD | Winner |
|---|---|---|---|
| Expense Ratio | 0.03% | 1.19% | |
| AUM | $865.2B | - | |
| Dividend Yield | 1.09% | 7.66% | |
| Holdings | 508 | 358 | |
| YTD Return | +9.93% | +2.36% | |
| 1Y Return | +19.59% | +5.66% | |
| 3Y Return (annualized) | +19.41% | +15.09% | |
| 5Y Return (annualized) | +12.89% | +3.91% | |
| Volatility (annualized) | 15.1% | 18.4% | |
| Max Drawdown | -56.5% | -66.0% | |
| Fund Family | iShares by BlackRock (US) | Morgan Stanley Investment Management | |
| Category | Equity | Fixed Income | |
| Inception | May 15, 2000 | Jul 23, 1993 |
IVV vs MSD Performance
iShares Core S&P 500 ETF (IVV) is a ETF from iShares by BlackRock (US) and Morgan Stanley Emerging Markets Debt Fund Inc. (MSD) is a ETF from Morgan Stanley Investment Management. Over the past year IVV returned +19.59% while MSD returned +5.66%. Year to date, IVV is up 9.93% versus a gain of 2.36% for MSD.
Over three years, IVV compounded at +19.41% per year against +15.09% for MSD; over five years the annualized figures are +12.89% and +3.91% respectively. Across the full 26-year window we track, IVV has the edge at +6.91% annualized vs -0.28%. Past performance does not guarantee future results.
Risk: Volatility and Drawdowns
MSD has been the more volatile fund, with annualized monthly volatility of 18.4% compared with 15.1% for IVV. 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 -66.0% for MSD. 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 0.55. They move independently enough that combining them can meaningfully diversify a portfolio.
Fees and Cost Over Time
IVV charges 0.03% per year while MSD charges 1.19%. On a $10,000 position that is $3 vs $119 annually, a gap of $116 per year that compounds over a long holding period. On income, IVV currently yields 1.09% against 7.66% for MSD.
Holdings Overlap
IVV and MSD share 0 holdings out of 558 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 MSD?
IVV has an expense ratio of 0.03% while MSD charges 1.19%. IVV is the cheaper option. On a $10,000 investment, that is $116 per year of difference.
Which performed better, IVV or MSD?
Over the past year IVV returned +19.59% vs +5.66% for MSD, so IVV leads on 1-year performance. Over the longest common window we track (26 years), IVV annualized +6.91% vs -0.28% for MSD. Past performance does not guarantee future results.
Which is riskier, IVV or MSD?
MSD has been the more volatile fund at 18.4% annualized versus 15.1% for IVV. Worst drawdown: IVV -56.5% vs MSD -66.0%.
Should I hold both IVV and MSD?
IVV and MSD have a monthly-return correlation of 0.55, so combining them can provide real diversification depending on your allocation goals.
What is the holdings overlap between IVV and MSD?
IVV and MSD share 0 common holdings with a 0.0% weight overlap. Combined, they hold 558 unique securities.
Which pays a higher dividend, IVV or MSD?
IVV yields 1.09% while MSD yields 7.66%, so MSD currently pays the higher dividend yield.
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