IVV vs VNQ
IVV vs VNQ
iShares Core S&P 500 ETF vs Vanguard Real Estate ETF
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 | VNQ | Winner |
|---|---|---|---|
| Expense Ratio | 0.03% | 0.13% | |
| AUM | $865.2B | $38.2B | |
| Dividend Yield | 1.09% | 3.52% | |
| Holdings | 508 | 144 | |
| YTD Return | +13.80% | +13.37% | |
| 1Y Return | +23.70% | +13.85% | |
| 3Y Return (annualized) | +21.49% | +9.90% | |
| 5Y Return (annualized) | +13.43% | +2.33% | |
| Volatility (annualized) | 15.1% | 21.4% | |
| Max Drawdown | -56.5% | -75.8% | |
| Fund Family | iShares by BlackRock (US) | Vanguard (US) | |
| Category | Equity | Equity | |
| Inception | May 15, 2000 | Sep 23, 2004 |
IVV vs VNQ Performance
iShares Core S&P 500 ETF (IVV) is a ETF from iShares by BlackRock (US) and Vanguard Real Estate ETF (VNQ) is a ETF from Vanguard (US). Over the past year IVV returned +23.70% while VNQ returned +13.85%. Year to date, IVV is up 13.80% versus a gain of 13.37% for VNQ.
Over three years, IVV compounded at +21.49% per year against +9.90% for VNQ; over five years the annualized figures are +13.43% and +2.33% respectively. Across the full 22-year window we track, IVV has the edge at +7.05% annualized vs +4.13%. Past performance does not guarantee future results.
Risk: Volatility and Drawdowns
VNQ has been the more volatile fund, with annualized monthly volatility of 21.4% compared with 15.1% for IVV. 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 -75.8% for VNQ. 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 0.74. They usually move together, but the gap leaves some room for diversification.
Fees and Cost Over Time
IVV charges 0.03% per year while VNQ charges 0.13%. On a $10,000 position that is $3 vs $13 annually, a gap of $10 per year that compounds over a long holding period. On income, IVV currently yields 1.09% against 3.52% for VNQ.
Holdings Overlap
IVV and VNQ share 31 holdings out of 618 unique holdings combined, representing a 1.9% weight overlap.
Moderate overlap means holding both could provide meaningful diversification benefits.
Top Shared Holdings
| Stock | Weight in IVV | Weight in VNQ | Difference |
|---|---|---|---|
| WELL | 0.27% | 8.41% | 8.14% |
| PLD | 0.22% | 6.70% | 6.48% |
| EQIX | 0.16% | 5.46% | 5.30% |
| AMT | Pro | Pro | Pro |
| SPG | Pro | Pro | Pro |
| DLR | Pro | Pro | Pro |
| O | Pro | Pro | Pro |
| PSA | Pro | Pro | Pro |
| VTR | Pro | Pro | Pro |
| CBRE | Pro | Pro | Pro |
See all 10 holdings IVV shares with VNQ Exact weights in each fund and the difference, for every overlapping position. Get FundXLS Pro: $29/moFirst 500 subscribers, then $49/mo. Cancel anytime. | |||
Frequently Asked Questions
Which is cheaper, IVV or VNQ?
IVV has an expense ratio of 0.03% while VNQ charges 0.13%. IVV is the cheaper option. On a $10,000 investment, that is $10 per year of difference.
Which performed better, IVV or VNQ?
Over the past year IVV returned +23.70% vs +13.85% for VNQ, so IVV leads on 1-year performance. Over the longest common window we track (22 years), IVV annualized +7.05% vs +4.13% for VNQ. Past performance does not guarantee future results.
Which is riskier, IVV or VNQ?
VNQ has been the more volatile fund at 21.4% annualized versus 15.1% for IVV. Worst drawdown: IVV -56.5% vs VNQ -75.8%.
Should I hold both IVV and VNQ?
IVV and VNQ have a monthly-return correlation of 0.74, so combining them can provide real diversification depending on your allocation goals.
What is the holdings overlap between IVV and VNQ?
IVV and VNQ share 31 common holdings with a 1.9% weight overlap. Combined, they hold 618 unique securities.
Which pays a higher dividend, IVV or VNQ?
IVV yields 1.09% while VNQ yields 3.52%, so VNQ currently pays the higher dividend yield.
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