IVV vs MSTI
IVV vs MSTI
iShares Core S&P 500 ETF vs Madison Short-Term Strategic Income 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 | IVV | MSTI | Winner |
|---|---|---|---|
| Expense Ratio | 0.03% | 0.36% | |
| AUM | $865.2B | $49M | |
| Dividend Yield | 1.09% | 5.33% | |
| Holdings | 508 | 99 | |
| YTD Return | +11.54% | +0.68% | |
| 1Y Return | +21.48% | +2.87% | |
| 3Y Return (annualized) | +20.86% | +5.79% | |
| 5Y Return (annualized) | +13.02% | - | |
| Volatility (annualized) | 15.1% | 2.5% | |
| Max Drawdown | -56.5% | -1.5% | |
| Fund Family | iShares by BlackRock (US) | Madison Funds | |
| Category | Equity | Fixed Income | |
| Inception | May 15, 2000 | Sep 5, 2023 |
IVV vs MSTI Performance
iShares Core S&P 500 ETF (IVV) is a ETF from iShares by BlackRock (US) and Madison Short-Term Strategic Income ETF (MSTI) is a ETF from Madison Funds. Over the past year IVV returned +21.48% while MSTI returned +2.87%. Year to date, IVV is up 11.54% versus a gain of 0.68% for MSTI.
Over three years, IVV compounded at +20.86% per year against +5.79% for MSTI. Across the full 3-year window we track, IVV has the edge at +6.97% annualized vs +5.79%. 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 2.5% for MSTI. 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 -1.5% for MSTI. 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 0.47. They move independently enough that combining them can meaningfully diversify a portfolio.
Fees and Cost Over Time
IVV charges 0.03% per year while MSTI charges 0.36%. On a $10,000 position that is $3 vs $36 annually, a gap of $33 per year that compounds over a long holding period. On income, IVV currently yields 1.09% against 5.33% for MSTI.
Holdings Overlap
IVV and MSTI share 0 holdings out of 561 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 MSTI?
IVV has an expense ratio of 0.03% while MSTI charges 0.36%. IVV is the cheaper option. On a $10,000 investment, that is $33 per year of difference.
Which performed better, IVV or MSTI?
Over the past year IVV returned +21.48% vs +2.87% for MSTI, so IVV leads on 1-year performance. Over the longest common window we track (3 years), IVV annualized +6.97% vs +5.79% for MSTI. Past performance does not guarantee future results.
Which is riskier, IVV or MSTI?
IVV has been the more volatile fund at 15.1% annualized versus 2.5% for MSTI. Worst drawdown: IVV -56.5% vs MSTI -1.5%.
Should I hold both IVV and MSTI?
IVV and MSTI have a monthly-return correlation of 0.47, so combining them can provide real diversification depending on your allocation goals.
What is the holdings overlap between IVV and MSTI?
IVV and MSTI share 0 common holdings with a 0.0% weight overlap. Combined, they hold 561 unique securities.
Which pays a higher dividend, IVV or MSTI?
IVV yields 1.09% while MSTI yields 5.33%, so MSTI currently pays the higher dividend yield.
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