IVV vs TAXM
IVV vs TAXM
iShares Core S&P 500 ETF vs BondBloxx IR+M Tax-Aware ETF for Massachusetts Residents
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 | TAXM | Winner |
|---|---|---|---|
| Expense Ratio | 0.03% | 0.35% | |
| AUM | $865.2B | $39M | |
| Dividend Yield | 1.09% | 3.31% | |
| Holdings | 508 | 143 | |
| YTD Return | +13.31% | +0.30% | |
| 1Y Return | +24.00% | +4.15% | |
| 3Y Return (annualized) | +21.16% | - | |
| 5Y Return (annualized) | +13.34% | - | |
| Volatility (annualized) | 15.1% | 3.6% | |
| Max Drawdown | -56.5% | -3.1% | |
| Fund Family | iShares by BlackRock (US) | BondBloxx | |
| Category | Equity | Tax Preferred | |
| Inception | May 15, 2000 | Mar 13, 2025 |
IVV vs TAXM Performance
iShares Core S&P 500 ETF (IVV) is a ETF from iShares by BlackRock (US) and BondBloxx IR+M Tax-Aware ETF for Massachusetts Residents (TAXM) is a ETF from BondBloxx. Over the past year IVV returned +24.00% while TAXM returned +4.15%. Year to date, IVV is up 13.31% versus a gain of 0.30% for TAXM.
Risk: Volatility and Drawdowns
IVV has been the more volatile fund, with annualized monthly volatility of 15.1% compared with 3.6% for TAXM. 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 -3.1% for TAXM. 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 0.44. They move independently enough that combining them can meaningfully diversify a portfolio.
Fees and Cost Over Time
IVV charges 0.03% per year while TAXM charges 0.35%. On a $10,000 position that is $3 vs $35 annually, a gap of $32 per year that compounds over a long holding period. On income, IVV currently yields 1.09% against 3.31% for TAXM.
Holdings Overlap
IVV and TAXM share 0 holdings out of 575 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 TAXM?
IVV has an expense ratio of 0.03% while TAXM charges 0.35%. IVV is the cheaper option. On a $10,000 investment, that is $32 per year of difference.
Which performed better, IVV or TAXM?
Over the past year IVV returned +24.00% vs +4.15% for TAXM, so IVV leads on 1-year performance. Over the longest common window we track (1 years), IVV annualized +7.03% vs +2.88% for TAXM. Past performance does not guarantee future results.
Which is riskier, IVV or TAXM?
IVV has been the more volatile fund at 15.1% annualized versus 3.6% for TAXM. Worst drawdown: IVV -56.5% vs TAXM -3.1%.
Should I hold both IVV and TAXM?
IVV and TAXM have a monthly-return correlation of 0.44, so combining them can provide real diversification depending on your allocation goals.
What is the holdings overlap between IVV and TAXM?
IVV and TAXM share 0 common holdings with a 0.0% weight overlap. Combined, they hold 575 unique securities.
Which pays a higher dividend, IVV or TAXM?
IVV yields 1.09% while TAXM yields 3.31%, so TAXM currently pays the higher dividend yield.
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