ITOT vs IVV: What’s The Difference? 2023
LAST UPDATED: October 15, 2023 | By Conrad Golly
The iShares Core S&P Total U.S. Stock Market ETF (ITOT) and the iShares Core S&P 500 ETF (IVV) are both interesting ETFs. ITOT tracks S&P Composite 1500 Index and IVV tracks S&P 500 Index. So, what’s the difference between ITOT vs IVV? And which fund is better?
ITOT vs IVV: The expense ratio of ITOT is 0.03% and IVV is 0.03%. ITOT’s biggest holding is Apple Inc and IVV’s biggest holding is Apple Inc. Overall, ITOT has provided -0.36% Lower returns than IVV over the past ten years.
In this article, we’ll compare ITOT vs IVV. We’ll look at holdings and performance, as well as at their portfolio growth and annual returns. Moreover, I’ll also discuss ITOT’s and IVV’s industry exposure, risk metrics, fund composition and examine how these affect their overall returns. The iShares Core S&P Total U.S. Stock Market ETF (ITOT) is a S&P Composite 1500 Index fund that is issued by iShares. It currently has $41.96B total assets under management and has yielded an average annual return of 12.54% over the past 10 years. The fund has a dividend yield of 1.56% with an expense ratio of 0.03%. The iShares Core S&P 500 ETF (IVV) is a S&P 500 Index that is issued by iShares. It currently has $310.36B total assets under management and has yielded an average annual return of 12.90% over the past 10 years. The fund has a dividend yield of 1.56% with an expense ratio of 0.03%.ITOT’s dividend yield is Lower than that of IVV (1.56% vs 1.56%). Also, ITOT yielded on average -0.36% Lower per year over the past decade (12.54% vs 12.90%). The expense ratio of ITOT is 0.00% percentage points Lower than IVV’s (0.03% vs 0.03%).
The iShares Core S&P Total U.S. Stock Market ETF (ITOT) has the most exposure to the Technology sector at 27.89%. This is followed by Healthcare and Financial Services at 13.68% and 12.21% respectively. Basic Materials (2.37%), Utilities (2.57%), and Real Estate (3.12%) only make up 8.06% of the fund’s total assets. ITOT’s middle weighted sectors is made up with moderate exposure to Energy, Consumer Defensive, Communication Services, Industrials, and Consumer Cyclical stocks at 4.17%, 6.28%, 8.04%, 8.91%, and 10.49%. The iShares Core S&P 500 ETF (IVV) has the most exposure to the Technology sector at 0.2858. This is followed by Healthcare and Financial Services at 0.1374 and 0.1199 respectively. Basic Materials (0.0218), Real Estate (0.025), and Utilities (0.0267) only make up 0.0735 of the fund’s total assets. IVV’s middle weighted sectors is made up with moderate exposure to Energy, Consumer Defensive, Industrials, Communication Services, and Consumer Cyclical stocks at 0.0416, 0.0682, 0.0799, 8.91%, and 10.49%.ITOT is -0.69% Less exposed to the Technology sector than IVV (27.89% vs 28.58%). ITOT’s exposure to Healthcare and Financial Services stocks is -0.06% Less and 0.22% More respectively (13.68% vs. 13.74%) and (12.21% vs. 11.99%).
In total, ITOT’s bottom three industries, Real Estate, Utilities, and Basic Materials also make up 0.71% Higher of the fund’s holdings compared to IVV’s bottom three industries. (8.06% vs. 0.0735).
Holdings iShares Core S&P Total U.S. Stock Market ETF (ITOT)
| ITOT Holdings | Weight |
| Apple Inc | 6.44% |
| Microsoft Corp | 5.97% |
| Amazon.com Inc | 2.62% |
| NVIDIA Corp | 2.27% |
| Alphabet Inc Class A | 1.79% |
| Alphabet Inc Class C | 1.56% |
| Meta Platforms Inc Class A | 1.44% |
| Berkshire Hathaway Inc Class B | 1.41% |
| Tesla Inc | 1.34% |
| UnitedHealth Group Inc | 1.11% |
Holdings iShares Core S&P 500 ETF (IVV)
| ITOT Holdings | Weight |
| Apple Inc | 0.0752 |
| Microsoft Corp | 0.0697 |
| Amazon.com Inc | 0.0306 |
| NVIDIA Corp | 0.0265 |
| Alphabet Inc Class A | 0.0209 |
| Alphabet Inc Class C | 0.0183 |
| Meta Platforms Inc Class A | 0.0168 |
| Berkshire Hathaway Inc Class B | 0.0165 |
| Tesla Inc | 0.0156 |
| UnitedHealth Group Inc | 0.013 |
ITOT’s Top Holdings are Apple Inc, Microsoft Corp, Amazon.com Inc, NVIDIA Corp, and Alphabet Inc Class A at 0.0752, 0.0697, 0.0306, 0.0265, and 0.0209.
Alphabet Inc Class C (0.0183), Meta Platforms Inc Class A (0.0168), and Berkshire Hathaway Inc Class B (0.0165) have a slightly smaller but still significant weight. Tesla Inc and UnitedHealth Group Inc are also represented in the ’s holdings at 0.0156 and 0.013.
Risk Analysis ITOT vs IVV
| SCHD | SDY | |
| Mean Return | 1.09 | 1.15 |
| R-squared | 99.09 | 100 |
| Std. Deviation | 18.22 | 17.92 |
| Alpha | -0.84 | -0.03 |
| Beta | 1.01 | 1 |
| Sharpe Ratio | 0.64 | 0.68 |
| Treynor Ratio | 10.52 | 11.44 |
The iShares Core S&P Total U.S. Stock Market ETF has a Standard Deviation of 18.22 with a Alpha of -0.84 and a Treynor Ratio of 10.52. Its Sharpe Ratio is 0.64 while ITOT’s Beta is 1.01. Furthermore, the fund has a Mean Return of 1.09 and a R-squared of 99.09.
The IVV has a R-squared of 100 with a Mean Return of 1.15 and a Standard Deviation of 17.92. Its Sharpe Ratio is 0.68 while IVV’s Alpha is -0.031. Furthermore, the fund has a Beta of 1 and a Treynor Ratio of 11.44.
Performance ITOT vs IVV
Annual Returns ITOT vs IVV
| Year | ITOT | IVV |
| 2022 | -19.47% | -0.1816 |
| 2021 | 25.68% | 0.2876 |
| 2020 | 20.71% | 0.184 |
| 2019 | 30.67% | 0.3125 |
| 2018 | -5.31% | -0.0447 |
| 2017 | 21.38% | 0.2176 |
| 2016 | 12.61% | 0.1216 |
| 2015 | 0.91% | 0.013 |
| 2014 | 12.97% | 0.1356 |
| 2013 | 32.73% | 0.323 |
| 2012 | 15.83% | 0.1606 |
| 2011 | 1.73% | 0.0186 |
ITOT had its best year in 2013 with an annual return of 32.73%. ITOT’s worst year over the past decade yielded -19.47% and occurred in 2022. In most years the iShares Core S&P Total U.S. Stock Market ETF provided moderate returns such as in 2019, 2021, and 2017 where annual returns amounted to 31.35%, 28.78%, and 21.77% respectively.
The year 2013 was the strongest year for IVV, returning 0.323 on an annual basis. The poorest year for IVV in the last ten years was 2022, with a yield of -0.1816. Most years the iShares Core S&P 500 ETF has given investors modest returns, such as in 2019, 2021, and 2017, when gains were 27.32%, 17.56%, and 16.26% respectively.
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Performance Comparison ITOT vs IVV
| Fund | Initial Balance | Final Balance | CAGR |
| ITOT | $10,000 | $29,499.31 | 12.77% |
| IVV | $10,000 | $30,516.91 | 13.20% |
A $10,000 investment in ITOT would have resulted in a final balance of $29,499.31. This is a profit of $19,499.31 over 10 years and amounts to a compound annual growth rate (CAGR) of 12.77%.
With a $10,000 investment in IVV, the end total would have been $30,516.91. This equates to a $20,516.91 profit over 10 years and a compound annual growth rate (CAGR) of 13.20%.
IVV’s CAGR is 0.43% Higher than that of ITOT and as a result, would have yielded $1,017.61 More on a $10,000 investment. Thus, IVV Overperformed ITOT by $101.76 annually.
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