IVV vs XBB

Quick Verdict

IVV has a lower expense ratio. IVV delivered stronger 1-year returns. XBB offers more diversification with 790 holdings.

Lower Fees: IVVHigher Returns: IVVMore Diversified: XBB

Side-by-Side Comparison

MetricIVVXBBWinner
Expense Ratio0.03%0.20%
AUM$865.2B$531M
Dividend Yield1.09%5.57%
Holdings5081,081
YTD Return+13.80%+1.55%
1Y Return+23.70%+4.75%
3Y Return (annualized)+21.49%+7.54%
5Y Return (annualized)+13.43%-
Volatility (annualized)15.1%7.3%
Max Drawdown-56.5%-8.9%
Fund FamilyiShares by BlackRock (US)BondBloxx
CategoryEquityFixed Income
InceptionMay 15, 2000May 24, 2022

IVV vs XBB Performance

iShares Core S&P 500 ETF (IVV) is a ETF from iShares by BlackRock (US) and BondBloxx BB Rated USD High Yield Corporate Bond ETF (XBB) is a ETF from BondBloxx. Over the past year IVV returned +23.70% while XBB returned +4.75%. Year to date, IVV is up 13.80% versus a gain of 1.55% for XBB.

Over three years, IVV compounded at +21.49% per year against +7.54% for XBB. Across the full 4-year window we track, IVV has the edge at +7.05% annualized vs +5.49%. 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 7.3% for XBB. 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 -8.9% for XBB. 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 0.82. They usually move together, but the gap leaves some room for diversification.

Fees and Cost Over Time

IVV charges 0.03% per year while XBB charges 0.20%. On a $10,000 position that is $3 vs $20 annually, a gap of $17 per year that compounds over a long holding period. On income, IVV currently yields 1.09% against 5.57% for XBB.

Holdings Overlap

0.0%overlap

IVV and XBB share 0 holdings out of 1295 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 XBB?

IVV has an expense ratio of 0.03% while XBB charges 0.20%. IVV is the cheaper option. On a $10,000 investment, that is $17 per year of difference.

Which performed better, IVV or XBB?

Over the past year IVV returned +23.70% vs +4.75% for XBB, so IVV leads on 1-year performance. Over the longest common window we track (4 years), IVV annualized +7.05% vs +5.49% for XBB. Past performance does not guarantee future results.

Which is riskier, IVV or XBB?

IVV has been the more volatile fund at 15.1% annualized versus 7.3% for XBB. Worst drawdown: IVV -56.5% vs XBB -8.9%.

Should I hold both IVV and XBB?

IVV and XBB have a monthly-return correlation of 0.82, so combining them can provide real diversification depending on your allocation goals.

What is the holdings overlap between IVV and XBB?

IVV and XBB share 0 common holdings with a 0.0% weight overlap. Combined, they hold 1295 unique securities.

Which pays a higher dividend, IVV or XBB?

IVV yields 1.09% while XBB yields 5.57%, so XBB currently pays the higher dividend yield.

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