IVV vs PAI
IVV vs PAI
iShares Core S&P 500 ETF vs Western Asset Investment Grade Income 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 | PAI | Winner |
|---|---|---|---|
| Expense Ratio | 0.03% | 0.73% | |
| AUM | $865.2B | $123M | |
| Dividend Yield | 1.09% | 4.81% | |
| Holdings | 508 | 476 | |
| YTD Return | +13.52% | -1.82% | |
| 1Y Return | +23.63% | -2.63% | |
| 3Y Return (annualized) | +21.26% | +6.27% | |
| 5Y Return (annualized) | +13.52% | -1.06% | |
| Volatility (annualized) | 15.1% | 12.6% | |
| Max Drawdown | -56.5% | -49.6% | |
| Fund Family | iShares by BlackRock (US) | Franklin Templeton Investments (US) | |
| Category | Equity | Fixed Income | |
| Inception | May 15, 2000 | Mar 22, 1973 |
IVV vs PAI Performance
iShares Core S&P 500 ETF (IVV) is a ETF from iShares by BlackRock (US) and Western Asset Investment Grade Income Fund Inc. (PAI) is a ETF from Franklin Templeton Investments (US). Over the past year IVV returned +23.63% while PAI returned -2.63%. Year to date, IVV is up 13.52% versus a loss of 1.82% for PAI.
Over three years, IVV compounded at +21.26% per year against +6.27% for PAI; over five years the annualized figures are +13.52% and -1.06% respectively. Across the full 26-year window we track, IVV has the edge at +7.04% annualized vs +0.09%. 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 12.6% for PAI. 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 -49.6% for PAI. 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 0.37. They move independently enough that combining them can meaningfully diversify a portfolio.
Fees and Cost Over Time
IVV charges 0.03% per year while PAI charges 0.73%. On a $10,000 position that is $3 vs $73 annually, a gap of $70 per year that compounds over a long holding period. On income, IVV currently yields 1.09% against 4.81% for PAI.
Holdings Overlap
IVV and PAI share 1 holdings out of 825 unique holdings combined, representing a 0.2% weight overlap.
Moderate overlap means holding both could provide meaningful diversification benefits.
Top Shared Holdings
| Stock | Weight in IVV | Weight in PAI | Difference |
|---|---|---|---|
| C | 0.35% | 0.21% | 0.14% |
Frequently Asked Questions
Which is cheaper, IVV or PAI?
IVV has an expense ratio of 0.03% while PAI charges 0.73%. IVV is the cheaper option. On a $10,000 investment, that is $70 per year of difference.
Which performed better, IVV or PAI?
Over the past year IVV returned +23.63% vs -2.63% for PAI, so IVV leads on 1-year performance. Over the longest common window we track (26 years), IVV annualized +7.04% vs +0.09% for PAI. Past performance does not guarantee future results.
Which is riskier, IVV or PAI?
IVV has been the more volatile fund at 15.1% annualized versus 12.6% for PAI. Worst drawdown: IVV -56.5% vs PAI -49.6%.
Should I hold both IVV and PAI?
IVV and PAI have a monthly-return correlation of 0.37, so combining them can provide real diversification depending on your allocation goals.
What is the holdings overlap between IVV and PAI?
IVV and PAI share 1 common holdings with a 0.2% weight overlap. Combined, they hold 825 unique securities.
Which pays a higher dividend, IVV or PAI?
IVV yields 1.09% while PAI yields 4.81%, so PAI currently pays the higher dividend yield.
Popular ETF Comparisons
Get Full ETF Analytics
Access complete holdings data, overlap analysis, screener tools, and more with FundXLS.