IVV vs SHM
IVV vs SHM
iShares Core S&P 500 ETF vs State Street SPDR Nuveen ICE Short Term Municipal Bond ETF
Quick Verdict
IVV has a lower expense ratio. IVV delivered stronger 1-year returns. SHM offers more diversification with 671 holdings.
Side-by-Side Comparison
| Metric | IVV | SHM | Winner |
|---|---|---|---|
| Expense Ratio | 0.03% | 0.20% | |
| AUM | $865.2B | $3.5B | |
| Dividend Yield | 1.09% | 2.66% | |
| Holdings | 508 | 988 | |
| YTD Return | +13.52% | +0.54% | |
| 1Y Return | +23.63% | +1.58% | |
| 3Y Return (annualized) | +21.26% | +2.75% | |
| 5Y Return (annualized) | +13.52% | +0.76% | |
| Volatility (annualized) | 15.1% | 2.6% | |
| Max Drawdown | -56.5% | -11.6% | |
| Fund Family | iShares by BlackRock (US) | State Street Investment Management | |
| Category | Equity | Tax Preferred | |
| Inception | May 15, 2000 | Oct 10, 2007 |
IVV vs SHM Performance
iShares Core S&P 500 ETF (IVV) is a ETF from iShares by BlackRock (US) and State Street SPDR Nuveen ICE Short Term Municipal Bond ETF (SHM) is a ETF from State Street Investment Management. Over the past year IVV returned +23.63% while SHM returned +1.58%. Year to date, IVV is up 13.52% versus a gain of 0.54% for SHM.
Over three years, IVV compounded at +21.26% per year against +2.75% for SHM; over five years the annualized figures are +13.52% and +0.76% respectively. Across the full 19-year window we track, IVV has the edge at +7.04% annualized vs +0.76%. 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 2.6% for SHM. 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 -11.6% for SHM. 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 0.21. They move independently enough that combining them can meaningfully diversify a portfolio.
Fees and Cost Over Time
IVV charges 0.03% per year while SHM charges 0.20%. On a $10,000 position that is $3 vs $20 annually, a gap of $17 per year that compounds over a long holding period. On income, IVV currently yields 1.09% against 2.66% for SHM.
Holdings Overlap
IVV and SHM share 0 holdings out of 1176 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 SHM?
IVV has an expense ratio of 0.03% while SHM charges 0.20%. IVV is the cheaper option. On a $10,000 investment, that is $17 per year of difference.
Which performed better, IVV or SHM?
Over the past year IVV returned +23.63% vs +1.58% for SHM, so IVV leads on 1-year performance. Over the longest common window we track (19 years), IVV annualized +7.04% vs +0.76% for SHM. Past performance does not guarantee future results.
Which is riskier, IVV or SHM?
IVV has been the more volatile fund at 15.1% annualized versus 2.6% for SHM. Worst drawdown: IVV -56.5% vs SHM -11.6%.
Should I hold both IVV and SHM?
IVV and SHM have a monthly-return correlation of 0.21, so combining them can provide real diversification depending on your allocation goals.
What is the holdings overlap between IVV and SHM?
IVV and SHM share 0 common holdings with a 0.0% weight overlap. Combined, they hold 1176 unique securities.
Which pays a higher dividend, IVV or SHM?
IVV yields 1.09% while SHM yields 2.66%, so SHM 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.