IVV vs VMBS
IVV vs VMBS
iShares Core S&P 500 ETF vs Vanguard Mortgage-Backed Securities ETF
Quick Verdict
IVV delivered stronger 1-year returns. VMBS offers more diversification with 4688 holdings.
Side-by-Side Comparison
| Metric | IVV | VMBS | Winner |
|---|---|---|---|
| Expense Ratio | 0.03% | 0.03% | |
| AUM | $865.2B | $15.6B | |
| Dividend Yield | 1.09% | 4.15% | |
| Holdings | 508 | 5,043 | |
| YTD Return | +9.93% | +0.01% | |
| 1Y Return | +19.59% | +4.32% | |
| 3Y Return (annualized) | +19.41% | +4.53% | |
| 5Y Return (annualized) | +12.89% | +0.22% | |
| Volatility (annualized) | 15.1% | 4.2% | |
| Max Drawdown | -56.5% | -18.4% | |
| Fund Family | iShares by BlackRock (US) | Vanguard (US) | |
| Category | Equity | Fixed Income | |
| Inception | May 15, 2000 | Nov 19, 2009 |
IVV vs VMBS Performance
iShares Core S&P 500 ETF (IVV) is a ETF from iShares by BlackRock (US) and Vanguard Mortgage-Backed Securities ETF (VMBS) is a ETF from Vanguard (US). Over the past year IVV returned +19.59% while VMBS returned +4.32%. Year to date, IVV is up 9.93% versus a gain of 0.01% for VMBS.
Over three years, IVV compounded at +19.41% per year against +4.53% for VMBS; over five years the annualized figures are +12.89% and +0.22% respectively. Across the full 17-year window we track, IVV has the edge at +6.91% annualized vs +0.49%. 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 4.2% for VMBS. 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 -18.4% for VMBS. 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 0.27. They move independently enough that combining them can meaningfully diversify a portfolio.
Fees and Cost Over Time
IVV charges 0.03% per year while VMBS charges 0.03%. On a $10,000 position that is $3 vs $3 annually. On income, IVV currently yields 1.09% against 4.15% for VMBS.
Holdings Overlap
IVV and VMBS share 0 holdings out of 5193 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 VMBS?
IVV has an expense ratio of 0.03% while VMBS charges 0.03%. They cost the same. On a $10,000 investment, that is $0 per year of difference.
Which performed better, IVV or VMBS?
Over the past year IVV returned +19.59% vs +4.32% for VMBS, so IVV leads on 1-year performance. Over the longest common window we track (17 years), IVV annualized +6.91% vs +0.49% for VMBS. Past performance does not guarantee future results.
Which is riskier, IVV or VMBS?
IVV has been the more volatile fund at 15.1% annualized versus 4.2% for VMBS. Worst drawdown: IVV -56.5% vs VMBS -18.4%.
Should I hold both IVV and VMBS?
IVV and VMBS have a monthly-return correlation of 0.27, so combining them can provide real diversification depending on your allocation goals.
What is the holdings overlap between IVV and VMBS?
IVV and VMBS share 0 common holdings with a 0.0% weight overlap. Combined, they hold 5193 unique securities.
Which pays a higher dividend, IVV or VMBS?
IVV yields 1.09% while VMBS yields 4.15%, so VMBS currently pays the higher dividend yield.
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