IVV vs WEA
IVV vs WEA
iShares Core S&P 500 ETF vs Western Asset Premier Bond Fund
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 | WEA | Winner |
|---|---|---|---|
| Expense Ratio | 0.03% | 1.22% | |
| AUM | $865.2B | $132M | |
| Dividend Yield | 1.09% | 7.44% | |
| Holdings | 508 | 386 | |
| YTD Return | +9.93% | -1.89% | |
| 1Y Return | +19.59% | +4.16% | |
| 3Y Return (annualized) | +19.41% | +6.23% | |
| 5Y Return (annualized) | +12.89% | +0.55% | |
| Volatility (annualized) | 15.1% | 15.8% | |
| Max Drawdown | -56.5% | -64.9% | |
| Fund Family | iShares by BlackRock (US) | Franklin Templeton Investments (US) | |
| Category | Equity | Fixed Income | |
| Inception | May 15, 2000 | Mar 28, 2002 |
IVV vs WEA Performance
iShares Core S&P 500 ETF (IVV) is a ETF from iShares by BlackRock (US) and Western Asset Premier Bond Fund (WEA) is a ETF from Franklin Templeton Investments (US). Over the past year IVV returned +19.59% while WEA returned +4.16%. Year to date, IVV is up 9.93% versus a loss of 1.89% for WEA.
Over three years, IVV compounded at +19.41% per year against +6.23% for WEA; over five years the annualized figures are +12.89% and +0.55% respectively. Across the full 24-year window we track, IVV has the edge at +6.91% annualized vs +0.15%. Past performance does not guarantee future results.
Risk: Volatility and Drawdowns
WEA has been the more volatile fund, with annualized monthly volatility of 15.8% 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 -64.9% for WEA. 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 0.46. They move independently enough that combining them can meaningfully diversify a portfolio.
Fees and Cost Over Time
IVV charges 0.03% per year while WEA charges 1.22%. On a $10,000 position that is $3 vs $122 annually, a gap of $119 per year that compounds over a long holding period. On income, IVV currently yields 1.09% against 7.44% for WEA.
Holdings Overlap
IVV and WEA share 0 holdings out of 751 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 WEA?
IVV has an expense ratio of 0.03% while WEA charges 1.22%. IVV is the cheaper option. On a $10,000 investment, that is $119 per year of difference.
Which performed better, IVV or WEA?
Over the past year IVV returned +19.59% vs +4.16% for WEA, so IVV leads on 1-year performance. Over the longest common window we track (24 years), IVV annualized +6.91% vs +0.15% for WEA. Past performance does not guarantee future results.
Which is riskier, IVV or WEA?
WEA has been the more volatile fund at 15.8% annualized versus 15.1% for IVV. Worst drawdown: IVV -56.5% vs WEA -64.9%.
Should I hold both IVV and WEA?
IVV and WEA have a monthly-return correlation of 0.46, so combining them can provide real diversification depending on your allocation goals.
What is the holdings overlap between IVV and WEA?
IVV and WEA share 0 common holdings with a 0.0% weight overlap. Combined, they hold 751 unique securities.
Which pays a higher dividend, IVV or WEA?
IVV yields 1.09% while WEA yields 7.44%, so WEA currently pays the higher dividend yield.
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