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IVV vs. VTV: What’s The Difference?

The iShares Core S&P 500 ETF (IVV) and the Vanguard Value Index Fund ETF Shares (VTV) are both among the Top 100 ETFs. IVV is a iShares Large Blend fund and VTV is a Vanguard Large Value fund. So, what’s the difference between IVV and VTV? And which fund is better?

The expense ratio of IVV is 0.01 percentage points lower than VTV’s (0.03% vs. 0.04%). IVV also has a higher exposure to the technology sector and a lower standard deviation. Overall, IVV has provided higher returns than VTV over the past ten years.

In this article, we’ll compare IVV vs. VTV. We’ll look at performance and annual returns, as well as at their portfolio growth and industry exposure. Moreover, I’ll also discuss IVV’s and VTV’s fund composition, holdings, and risk metrics and examine how these affect their overall returns.

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Summary

IVVVTV
NameiShares Core S&P 500 ETFVanguard Value Index Fund ETF Shares
CategoryLarge BlendLarge Value
IssueriSharesVanguard
AUM294.95B125.77B
Avg. Return14.48%12.07%
Div. Yield1.28%2.15%
Expense Ratio0.03%0.04%

The iShares Core S&P 500 ETF (IVV) is a Large Blend fund that is issued by iShares. It currently has 294.95B total assets under management and has yielded an average annual return of 14.48% over the past 10 years. The fund has a dividend yield of 1.28% with an expense ratio of 0.03%.

The Vanguard Value Index Fund ETF Shares (VTV) is a Large Value fund that is issued by Vanguard. It currently has 125.77B total assets under management and has yielded an average annual return of 12.07% over the past 10 years. The fund has a dividend yield of 2.15% with an expense ratio of 0.04%.

IVV’s dividend yield is 0.87% lower than that of VTV (1.28% vs. 2.15%). Also, IVV yielded on average 2.40% more per year over the past decade (14.48% vs. 12.07%). The expense ratio of IVV is 0.01 percentage points lower than VTV’s (0.03% vs. 0.04%).

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Fund Composition

Industry Exposure

IVV vs. VTV - Industry Exposure

IVVVTV
Technology24.64%7.86%
Industrials8.73%12.61%
Energy2.55%5.59%
Communication Services11.24%5.49%
Utilities2.49%5.37%
Healthcare13.52%19.84%
Consumer Defensive6.34%10.72%
Real Estate2.63%3.01%
Financial Services13.86%22.81%
Consumer Cyclical11.74%3.79%
Basic Materials2.27%2.91%

The iShares Core S&P 500 ETF (IVV) has the most exposure to the Technology sector at 24.64%. This is followed by Financial Services and Healthcare at 13.86% and 13.52% respectively. Utilities (2.49%), Energy (2.55%), and Real Estate (2.63%) only make up 7.67% of the fund’s total assets.

IVV’s mid-section with moderate exposure is comprised of Consumer Defensive, Industrials, Communication Services, Consumer Cyclical, and Healthcare stocks at 6.34%, 8.73%, 11.24%, 11.74%, and 13.52%.

The Vanguard Value Index Fund ETF Shares (VTV) has the most exposure to the Financial Services sector at 22.81%. This is followed by Healthcare and Industrials at 19.84% and 12.61% respectively. Real Estate (3.01%), Consumer Cyclical (3.79%), and Utilities (5.37%) only make up 12.17% of the fund’s total assets.

VTV’s mid-section with moderate exposure is comprised of Communication Services, Energy, Technology, Consumer Defensive, and Industrials stocks at 5.49%, 5.59%, 7.86%, 10.72%, and 12.61%.

IVV is 16.78% more exposed to the Technology sector than VTV (24.64% vs 7.86%). IVV’s exposure to Financial Services and Healthcare stocks is 8.95% lower and 6.32% lower respectively (13.86% vs. 22.81% and 13.52% vs. 19.84%). In total, Utilities, Energy, and Real Estate also make up 6.30% less of the fund’s holdings compared to VTV (7.67% vs. 13.97%).

Holdings

IVV - Holdings

IVV HoldingsWeight
Apple Inc6.14%
Microsoft Corp5.76%
Amazon.com Inc3.83%
Facebook Inc Class A2.29%
Alphabet Inc Class A2.17%
Alphabet Inc Class C2.07%
Tesla Inc1.42%
Berkshire Hathaway Inc Class B1.42%
NVIDIA Corp1.3%
JPMorgan Chase & Co1.23%

IVV’s Top Holdings are Apple Inc, Microsoft Corp, Amazon.com Inc, Facebook Inc Class A, and Alphabet Inc Class A at 6.14%, 5.76%, 3.83%, 2.29%, and 2.17%.

Alphabet Inc Class C (2.07%), Tesla Inc (1.42%), and Berkshire Hathaway Inc Class B (1.42%) have a slightly smaller but still significant weight. NVIDIA Corp and JPMorgan Chase & Co are also represented in the IVV’s holdings at 1.3% and 1.23%.

VTV - Holdings

VTV HoldingsWeight
Berkshire Hathaway Inc Class B2.98%
JPMorgan Chase & Co2.82%
Johnson & Johnson2.6%
UnitedHealth Group Inc2.27%
Procter & Gamble Co1.98%
Bank of America Corp1.91%
Exxon Mobil Corp1.6%
Comcast Corp Class A1.57%
Intel Corp1.36%
Verizon Communications Inc1.32%

VTV’s Top Holdings are Berkshire Hathaway Inc Class B, JPMorgan Chase & Co, Johnson & Johnson, UnitedHealth Group Inc, and Procter & Gamble Co at 2.98%, 2.82%, 2.6%, 2.27%, and 1.98%.

Bank of America Corp (1.91%), Exxon Mobil Corp (1.6%), and Comcast Corp Class A (1.57%) have a slightly smaller but still significant weight. Intel Corp and Verizon Communications Inc are also represented in the VTV’s holdings at 1.36% and 1.32%.

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Performance

Annual Returns

IVV vs. VTV - Annual Returns

YearIVVVTV
202018.37%2.23%
201931.44%25.85%
2018-4.42%-5.39%
201721.79%17.12%
201611.9%16.88%
20151.34%-0.89%
201413.62%13.19%
201332.31%33.03%
201215.91%15.19%
20112.03%1.16%
201014.96%14.45%

IVV had its best year in 2013 with an annual return of 32.31%. IVV’s worst year over the past decade yielded -4.42% and occurred in 2018. In most years the iShares Core S&P 500 ETF provided moderate returns such as in 2014, 2010, and 2012 where annual returns amounted to 13.62%, 14.96%, and 15.91% respectively.

The year 2013 was the strongest year for VTV, returning 33.03% on an annual basis. The poorest year for VTV in the last ten years was 2018, with a yield of -5.39%. Most years the Vanguard Value Index Fund ETF Shares has given investors modest returns, such as in 2014, 2010, and 2012, when gains were 13.19%, 14.45%, and 15.19% respectively.

Portfolio Growth

IVV vs. VTV - Portfolio Growth

FundInitial BalanceFinal BalanceCAGR
IVV$10,000$41,97614.48%
VTV$10,000$33,16312.07%

A $10,000 investment in IVV would have resulted in a final balance of $41,976. This is a profit of $31,976 over 11 years and amounts to a compound annual growth rate (CAGR) of 14.48%.

With a $10,000 investment in VTV, the end total would have been $33,163. This equates to a $23,163 profit over 11 years and a compound annual growth rate (CAGR) of 12.07%.

IVV’s CAGR is 2.40 percentage points higher than that of VTV and as a result, would have yielded $8,813 more on a $10,000 investment. Thus, IVV outperformed VTV by 2.40% annually.


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