BABO vs. IVVW
BABO (YieldMax BABA Option Income Strategy ETF) and IVVW (iShares S&P 500 BuyWrite ETF) are both Derivative Income funds. BABO is actively managed, while IVVW is passively managed. Over the past year, BABO returned -13.16% vs 16.65% for IVVW. At a 0.28 correlation, their price movements are largely independent. BABO charges 0.99%/yr vs 0.25%/yr for IVVW.
Performance
BABO vs. IVVW - Performance Comparison
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Returns By Period
In the year-to-date period, BABO achieves a -28.18% return, which is significantly lower than IVVW's 4.06% return.
BABO
- 1D
- -2.04%
- 1M
- -18.89%
- YTD
- -28.18%
- 6M
- -29.66%
- 1Y
- -13.16%
- 3Y*
- —
- 5Y*
- —
- 10Y*
- —
IVVW
- 1D
- 0.05%
- 1M
- 0.21%
- YTD
- 4.06%
- 6M
- 3.97%
- 1Y
- 16.65%
- 3Y*
- —
- 5Y*
- —
- 10Y*
- —
BABO vs. IVVW - Yearly Performance Comparison
| 2026 (YTD) | 2025 | 2024 | |
|---|---|---|---|
BABO YieldMax BABA Option Income Strategy ETF | -28.18% | 46.84% | 0.65% |
IVVW iShares S&P 500 BuyWrite ETF | 4.06% | 11.71% | 13.16% |
Correlation
The correlation between BABO and IVVW is 0.31, which is low. Their price movements are largely independent, making them effective diversification partners.
| Correlation | |
|---|---|
Correlation (1Y) Calculated over the trailing 1-year period | 0.31 |
Correlation (All Time) Calculated using the full available price history since Aug 8, 2024 | 0.28 |
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Return for Risk
BABO vs. IVVW — Risk / Return Rank
BABO
IVVW
BABO vs. IVVW - Risk-Adjusted Trends Comparison
This table presents a comparison of risk-adjusted performance metrics for YieldMax BABA Option Income Strategy ETF (BABO) and iShares S&P 500 BuyWrite ETF (IVVW). Risk-adjusted metrics are performance indicators that assess an investment's returns in relation to its risk, enabling a more accurate comparison of different investment options.
Values are calculated on a 1-year rolling basis and updated daily. Risk-adjusted metrics are more stable over longer periods — use the period switch above to explore them.
| BABO | IVVW | Difference | |
|---|---|---|---|
| Sharpe ratioReturn per unit of total volatility | -2.46 | ||
| Sortino ratioReturn per unit of downside risk | -3.19 | ||
| Omega ratioGain probability vs. loss probability | 0.96 | 1.45 | -0.49 |
| Calmar ratioReturn relative to maximum drawdown | -0.33 | 2.88 | -3.21 |
| Martin ratioReturn relative to average drawdown | -0.80 | 15.32 | -16.12 |
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Drawdowns
BABO vs. IVVW - Drawdown Comparison
The maximum BABO drawdown since its inception was -39.66%, which is greater than IVVW's maximum drawdown of -16.79%. Use the drawdown chart below to compare losses from any high point for BABO and IVVW.
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Drawdown Indicators
| BABO | IVVW | Difference | |
|---|---|---|---|
Max DrawdownLargest peak-to-trough decline | -39.66% | -16.79% | -22.87% |
Max Drawdown (1Y)Largest decline over 1 year | -39.66% | -5.81% | -33.85% |
Current DrawdownCurrent decline from peak | -39.66% | -1.33% | -38.33% |
Average DrawdownAverage peak-to-trough decline | -14.24% | -1.73% | -12.51% |
Ulcer IndexDepth and duration of drawdowns from previous peaks | 16.49% | 1.09% | +15.40% |
Volatility
BABO vs. IVVW - Volatility Comparison
YieldMax BABA Option Income Strategy ETF (BABO) has a higher volatility of 6.74% compared to iShares S&P 500 BuyWrite ETF (IVVW) at 3.44%. This indicates that BABO's price experiences larger fluctuations and is considered to be riskier than IVVW based on this measure. The chart below showcases a comparison of their rolling one-month volatility.
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Volatility by Period
| BABO | IVVW | Difference | |
|---|---|---|---|
Volatility (1M)Calculated over the trailing 1-month period | 6.74% | 3.44% | +3.30% |
Volatility (6M)Calculated over the trailing 6-month period | 24.49% | 6.89% | +17.60% |
Volatility (1Y)Calculated over the trailing 1-year period | 35.34% | 8.04% | +27.30% |
Volatility (5Y)Calculated over the trailing 5-year period, annualized | 36.54% | 12.68% | +23.86% |
Volatility (10Y)Calculated over the trailing 10-year period, annualized | 36.54% | 12.68% | +23.86% |
BABO vs. IVVW - Expense Ratio Comparison
BABO has a 0.99% expense ratio, which is higher than IVVW's 0.25% expense ratio.
Dividends
BABO vs. IVVW - Dividend Comparison
BABO's dividend yield for the trailing twelve months is around 105.09%, more than IVVW's 19.85% yield.
| Position | TTM | 2025 | 2024 |
|---|---|---|---|
BABO YieldMax BABA Option Income Strategy ETF | 105.09% | 85.50% | 20.65% |
IVVW iShares S&P 500 BuyWrite ETF | 19.85% | 18.55% | 13.72% |
Frequently Asked Questions
BABO and IVVW have a correlation of 0.31, meaning they provide meaningful diversification benefit when combined. Depending on your allocation goals, holding both could reduce overall portfolio risk.
BABO has higher volatility (6.74%) compared to IVVW (3.44%). In terms of maximum drawdown, BABO dropped -39.66% vs IVVW's -16.79%.
On 1-year performance, IVVW leads with 16.65% vs -13.16% for BABO. On fees, IVVW is cheaper at 0.25% per year. On volatility, IVVW has been the lower-risk option at 3.44%. The better choice depends on whether you care most about return, fees, risk, or income.
Over the 1-year period, IVVW has performed better with a 16.65% return vs -13.16%. Past performance does not guarantee future results, so compare this with risk, fees, and fund exposure.
IVVW is cheaper with a 0.25% expense ratio, compared with 0.99% for BABO.
BABO has the higher dividend yield at 105.09%, compared with 19.85% for IVVW.
They also come from different issuers: YieldMax and iShares. Their fees differ too: 0.99% for BABO and 0.25% for IVVW.
IVVW currently has the higher Sharpe Ratio (2.08 vs -0.37), meaning it's delivered slightly more return per unit of risk over the trailing 12 months. However, this ranking shifts over time - use the Risk/Return Score above for a more comprehensive view that combines Sharpe, Sortino, and other measures used by quantitative funds.
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