IVV vs SDHY

Quick Verdict

IVV has a lower expense ratio. IVV delivered stronger 1-year returns. IVV offers more diversification with 505 holdings.

Lower Fees: IVVHigher Returns: IVVMore Diversified: IVV

Side-by-Side Comparison

MetricIVVSDHYWinner
Expense Ratio0.03%1.90%
AUM$865.2B$441M
Dividend Yield1.09%7.47%
Holdings508572
YTD Return+11.54%+2.01%
1Y Return+21.48%+4.52%
3Y Return (annualized)+20.86%+10.64%
5Y Return (annualized)+13.02%+4.58%
Volatility (annualized)15.1%10.1%
Max Drawdown-56.5%-23.1%
Fund FamilyiShares by BlackRock (US)PGIM Investments
CategoryEquityFixed Income
InceptionMay 15, 2000Nov 25, 2020

IVV vs SDHY Performance

iShares Core S&P 500 ETF (IVV) is a ETF from iShares by BlackRock (US) and PGIM Short Duration High Yield Opportunities Fund (SDHY) is a ETF from PGIM Investments. Over the past year IVV returned +21.48% while SDHY returned +4.52%. Year to date, IVV is up 11.54% versus a gain of 2.01% for SDHY.

Over three years, IVV compounded at +20.86% per year against +10.64% for SDHY; over five years the annualized figures are +13.02% and +4.58% respectively. Across the full 6-year window we track, IVV has the edge at +6.97% annualized vs +4.06%. 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 10.1% for SDHY. 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 -23.1% for SDHY. 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 0.66. They move independently enough that combining them can meaningfully diversify a portfolio.

Fees and Cost Over Time

IVV charges 0.03% per year while SDHY charges 1.90%. On a $10,000 position that is $3 vs $190 annually, a gap of $187 per year that compounds over a long holding period. On income, IVV currently yields 1.09% against 7.47% for SDHY.

Holdings Overlap

0.0%overlap

IVV and SDHY share 0 holdings out of 961 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 SDHY?

IVV has an expense ratio of 0.03% while SDHY charges 1.90%. IVV is the cheaper option. On a $10,000 investment, that is $187 per year of difference.

Which performed better, IVV or SDHY?

Over the past year IVV returned +21.48% vs +4.52% for SDHY, so IVV leads on 1-year performance. Over the longest common window we track (6 years), IVV annualized +6.97% vs +4.06% for SDHY. Past performance does not guarantee future results.

Which is riskier, IVV or SDHY?

IVV has been the more volatile fund at 15.1% annualized versus 10.1% for SDHY. Worst drawdown: IVV -56.5% vs SDHY -23.1%.

Should I hold both IVV and SDHY?

IVV and SDHY have a monthly-return correlation of 0.66, so combining them can provide real diversification depending on your allocation goals.

What is the holdings overlap between IVV and SDHY?

IVV and SDHY share 0 common holdings with a 0.0% weight overlap. Combined, they hold 961 unique securities.

Which pays a higher dividend, IVV or SDHY?

IVV yields 1.09% while SDHY yields 7.47%, so SDHY currently pays the higher dividend yield.

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