IVV vs IVE: Which One Should You Choose?LAST UPDATED: July 18, 2023 | By Conrad Golly
If you’re looking to invest in large-cap stocks, you might be wondering which ETF is the better choice between IVV and IVE.
As someone who has been investing in the stock market for years, I can tell you that both of these ETFs have their pros and cons.
However, depending on your investment goals, one might be a better choice than the other.
IVV vs IVE: First, let’s take a look at the differences between IVV and IVE. IVV is an iShares Large Blend fund, while IVE is an iShares Large Value fund.
The main difference between the two is that IVV has a higher exposure to the technology sector, while IVE has a higher exposure to the financial sector.
Additionally, the expense ratio of IVV is 0.15 percentage points lower than IVE’s (0.03% vs. 0.18%).
So, which one is better? Well, it really depends on your investment goals. If you’re looking for a lower expense ratio and exposure to the technology sector, IVV might be the better choice.
However, if you’re looking for exposure to the financial sector, IVE might be a better fit.
Both of these ETFs are solid choices for investing in large-cap stocks, and the decision between the two should be based on your individual investment goals and risk tolerance.
Table of Contents
IVV vs IVE
What is IVV?
IVV is an ETF that tracks the S&P 500 index.
It is managed by BlackRock and has been around since 2000. The ETF aims to provide investors with exposure to the US large-cap equity market.
It has a low expense ratio of 0.03% and has over $300 billion in assets under management.
What is IVE?
IVE is another ETF that tracks the S&P 500 index.
However, it focuses on the value segment of the market, which includes companies that are undervalued relative to their fundamentals.
It is also managed by BlackRock and has been around since 2000. IVE has a higher expense ratio of 0.18% and has over $18 billion in assets under management.
Key Differences between IVV vs IVE
One of the key differences between IVV and IVE is their expense ratios.
IVV has a much lower expense ratio compared to IVE, which can make a big difference in the long run.
Another difference is their exposure to different sectors. IVV has a higher exposure to the technology sector, while IVE has a higher exposure to the financial sector.
IVV has a lower standard deviation, which means it is less volatile than IVE.
Here’s a table summarizing the differences between IVV and IVE:
|Exposure to Technology Sector||Higher||Lower|
|Exposure to Financial Sector||Lower||Higher|
It’s important to note that both IVV and IVE are great options for investors looking to gain exposure to the US large-cap equity market.
However, it’s important to consider the differences between the two ETFs and choose the one that aligns with your investment goals and risk tolerance.
IVE is an ETF that tracks the performance of the S&P 500 Value Index.
This index represents the value companies in the S&P 500, which are those that are considered undervalued by the market. IVE is managed by iShares and has been in existence for over 20 years.
IVV is also an ETF that tracks the S&P 500 Index, but it focuses on large-cap companies rather than value companies. IVV is managed by BlackRock and has been in existence for over 20 years.
Bottom Line: IVE vs IVV
The main difference between IVE and IVV is the type of companies they focus on. IVE tracks value companies, while IVV tracks large-cap companies.
Another key difference is the expense ratio, with IVV having a lower expense ratio than IVE.
IVV has a higher exposure to the technology sector and a lower standard deviation than IVE. Here is a table summarizing the key differences between IVE and IVV:
|Focus||Value companies||Large-cap companies|
|Sector Exposure||Financials, Energy, and Health Care||Information Technology, Health Care, and Consumer Discretionary|
Both IVE and IVV are popular ETFs that track the S&P 500 Index.
IVV vs IVE Growth
However, they have different focuses and expense ratios, which may make one more suitable for an investor’s portfolio depending on their investment goals and risk tolerance.
|Fund||Initial Balance||Final Balance||CAGR|
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 IVE, the end total would have been $31,350. This equates to a $21,350 profit over 11 years and a compound annual growth rate (CAGR) of 11.68%.