IVV vs VSHY
IVV vs VSHY
iShares Core S&P 500 ETF vs Virtus Newfleet Short Duration High Yield Bond 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 | VSHY | Winner |
|---|---|---|---|
| Expense Ratio | 0.03% | 0.39% | |
| AUM | $865.2B | $31M | |
| Dividend Yield | 1.09% | 6.39% | |
| Holdings | 508 | 171 | |
| YTD Return | +13.80% | +2.97% | |
| 1Y Return | +23.70% | +5.73% | |
| 3Y Return (annualized) | +21.49% | +7.95% | |
| 5Y Return (annualized) | +13.43% | +4.17% | |
| Volatility (annualized) | 15.1% | 6.2% | |
| Max Drawdown | -56.5% | -18.6% | |
| Fund Family | iShares by BlackRock (US) | Virtus Investment Partners | |
| Category | Equity | Fixed Income | |
| Inception | May 15, 2000 | Dec 5, 2016 |
IVV vs VSHY Performance
iShares Core S&P 500 ETF (IVV) is a ETF from iShares by BlackRock (US) and Virtus Newfleet Short Duration High Yield Bond ETF (VSHY) is a ETF from Virtus Investment Partners. Over the past year IVV returned +23.70% while VSHY returned +5.73%. Year to date, IVV is up 13.80% versus a gain of 2.97% for VSHY.
Over three years, IVV compounded at +21.49% per year against +7.95% for VSHY; over five years the annualized figures are +13.43% and +4.17% respectively. Across the full 10-year window we track, IVV has the edge at +7.05% annualized vs +2.18%. 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 6.2% for VSHY. 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 -18.6% for VSHY. 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 0.78. They usually move together, but the gap leaves some room for diversification.
Fees and Cost Over Time
IVV charges 0.03% per year while VSHY charges 0.39%. On a $10,000 position that is $3 vs $39 annually, a gap of $36 per year that compounds over a long holding period. On income, IVV currently yields 1.09% against 6.39% for VSHY.
Holdings Overlap
IVV and VSHY share 0 holdings out of 506 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 VSHY?
IVV has an expense ratio of 0.03% while VSHY charges 0.39%. IVV is the cheaper option. On a $10,000 investment, that is $36 per year of difference.
Which performed better, IVV or VSHY?
Over the past year IVV returned +23.70% vs +5.73% for VSHY, so IVV leads on 1-year performance. Over the longest common window we track (10 years), IVV annualized +7.05% vs +2.18% for VSHY. Past performance does not guarantee future results.
Which is riskier, IVV or VSHY?
IVV has been the more volatile fund at 15.1% annualized versus 6.2% for VSHY. Worst drawdown: IVV -56.5% vs VSHY -18.6%.
Should I hold both IVV and VSHY?
IVV and VSHY have a monthly-return correlation of 0.78, so combining them can provide real diversification depending on your allocation goals.
What is the holdings overlap between IVV and VSHY?
IVV and VSHY share 0 common holdings with a 0.0% weight overlap. Combined, they hold 506 unique securities.
Which pays a higher dividend, IVV or VSHY?
IVV yields 1.09% while VSHY yields 6.39%, so VSHY currently pays the higher dividend yield.
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