IVV vs VGMS
IVV vs VGMS
iShares Core S&P 500 ETF vs Vanguard Multi-Sector Income Bond ETF
Quick Verdict
IVV has a lower expense ratio. IVV delivered stronger 1-year returns. VGMS offers more diversification with 534 holdings.
Side-by-Side Comparison
| Metric | IVV | VGMS | Winner |
|---|---|---|---|
| Expense Ratio | 0.03% | 0.30% | |
| AUM | $865.2B | $235M | |
| Dividend Yield | 1.09% | 5.14% | |
| Holdings | 508 | 927 | |
| YTD Return | +9.93% | -1.54% | |
| 1Y Return | +19.59% | +2.46% | |
| 3Y Return (annualized) | +19.41% | - | |
| 5Y Return (annualized) | +12.89% | - | |
| Volatility (annualized) | 15.1% | 2.9% | |
| Max Drawdown | -56.5% | -2.9% | |
| Fund Family | iShares by BlackRock (US) | Vanguard (US) | |
| Category | Equity | Fixed Income | |
| Inception | May 15, 2000 | Jun 9, 2025 |
IVV vs VGMS Performance
iShares Core S&P 500 ETF (IVV) is a ETF from iShares by BlackRock (US) and Vanguard Multi-Sector Income Bond ETF (VGMS) is a ETF from Vanguard (US). Over the past year IVV returned +19.59% while VGMS returned +2.46%. Year to date, IVV is up 9.93% versus a loss of 1.54% for VGMS.
Risk: Volatility and Drawdowns
IVV has been the more volatile fund, with annualized monthly volatility of 15.1% compared with 2.9% for VGMS. 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 -2.9% for VGMS. 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 0.62. They move independently enough that combining them can meaningfully diversify a portfolio.
Fees and Cost Over Time
IVV charges 0.03% per year while VGMS charges 0.30%. On a $10,000 position that is $3 vs $30 annually, a gap of $27 per year that compounds over a long holding period. On income, IVV currently yields 1.09% against 5.14% for VGMS.
Holdings Overlap
IVV and VGMS share 0 holdings out of 1039 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 VGMS?
IVV has an expense ratio of 0.03% while VGMS charges 0.30%. IVV is the cheaper option. On a $10,000 investment, that is $27 per year of difference.
Which performed better, IVV or VGMS?
Over the past year IVV returned +19.59% vs +2.46% for VGMS, so IVV leads on 1-year performance. Over the longest common window we track (1 years), IVV annualized +6.91% vs +3.65% for VGMS. Past performance does not guarantee future results.
Which is riskier, IVV or VGMS?
IVV has been the more volatile fund at 15.1% annualized versus 2.9% for VGMS. Worst drawdown: IVV -56.5% vs VGMS -2.9%.
Should I hold both IVV and VGMS?
IVV and VGMS have a monthly-return correlation of 0.62, so combining them can provide real diversification depending on your allocation goals.
What is the holdings overlap between IVV and VGMS?
IVV and VGMS share 0 common holdings with a 0.0% weight overlap. Combined, they hold 1039 unique securities.
Which pays a higher dividend, IVV or VGMS?
IVV yields 1.09% while VGMS yields 5.14%, so VGMS currently pays the higher dividend yield.
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