IVV vs VWO
IVV vs VWO
iShares Core S&P 500 ETF vs Vanguard FTSE Emerging Markets ETF
Quick Verdict
IVV has a lower expense ratio. IVV delivered stronger 1-year returns. VWO offers more diversification with 3979 holdings.
Side-by-Side Comparison
| Metric | IVV | VWO | Winner |
|---|---|---|---|
| Expense Ratio | 0.03% | 0.06% | |
| AUM | $865.2B | $122.3B | |
| Dividend Yield | 1.09% | 2.37% | |
| Holdings | 508 | 6,334 | |
| YTD Return | +13.52% | +9.45% | |
| 1Y Return | +23.63% | +23.24% | |
| 3Y Return (annualized) | +21.26% | +16.43% | |
| 5Y Return (annualized) | +13.52% | +6.27% | |
| Volatility (annualized) | 15.1% | 20.1% | |
| Max Drawdown | -56.5% | -68.3% | |
| Fund Family | iShares by BlackRock (US) | Vanguard (US) | |
| Category | Equity | Equity | |
| Inception | May 15, 2000 | Mar 4, 2005 |
IVV vs VWO Performance
iShares Core S&P 500 ETF (IVV) is a ETF from iShares by BlackRock (US) and Vanguard FTSE Emerging Markets ETF (VWO) is a ETF from Vanguard (US). Over the past year IVV returned +23.63% while VWO returned +23.24%. Year to date, IVV is up 13.52% versus a gain of 9.45% for VWO.
Over three years, IVV compounded at +21.26% per year against +16.43% for VWO; over five years the annualized figures are +13.52% and +6.27% respectively. Across the full 21-year window we track, IVV has the edge at +7.04% annualized vs +4.96%. Past performance does not guarantee future results.
Risk: Volatility and Drawdowns
VWO has been the more volatile fund, with annualized monthly volatility of 20.1% 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 -68.3% for VWO. 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 0.73. They usually move together, but the gap leaves some room for diversification.
Fees and Cost Over Time
IVV charges 0.03% per year while VWO charges 0.06%. On a $10,000 position that is $3 vs $6 annually, a gap of $3 per year that compounds over a long holding period. On income, IVV currently yields 1.09% against 2.37% for VWO.
Holdings Overlap
IVV and VWO share 0 holdings out of 4484 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 VWO?
IVV has an expense ratio of 0.03% while VWO charges 0.06%. IVV is the cheaper option. On a $10,000 investment, that is $3 per year of difference.
Which performed better, IVV or VWO?
Over the past year IVV returned +23.63% vs +23.24% for VWO, so IVV leads on 1-year performance. Over the longest common window we track (21 years), IVV annualized +7.04% vs +4.96% for VWO. Past performance does not guarantee future results.
Which is riskier, IVV or VWO?
VWO has been the more volatile fund at 20.1% annualized versus 15.1% for IVV. Worst drawdown: IVV -56.5% vs VWO -68.3%.
Should I hold both IVV and VWO?
IVV and VWO have a monthly-return correlation of 0.73, so combining them can provide real diversification depending on your allocation goals.
What is the holdings overlap between IVV and VWO?
IVV and VWO share 0 common holdings with a 0.0% weight overlap. Combined, they hold 4484 unique securities.
Which pays a higher dividend, IVV or VWO?
IVV yields 1.09% while VWO yields 2.37%, so VWO currently pays the higher dividend yield.
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