VLU vs. ILCV

Last updated Jun 4, 2026

VLU (SPDR S&P 1500 Value Tilt ETF) and ILCV (iShares Morningstar Value ETF) are both Large Cap Value Equities funds - VLU tracks the S&P 1500 Low Valuation Tilt Index while ILCV tracks the Morningstar US Large-Mid Cap Broad Value Index. Both are passively managed. Over the past 10 years, VLU returned 13.99%/yr vs 11.68%/yr for ILCV. A 0.73 correlation means they provide meaningful diversification when combined. VLU charges 0.12%/yr vs 0.04%/yr for ILCV.

Performance

VLU vs. ILCV - Performance Comparison

The chart below illustrates the hypothetical performance of a $10,000 investment in SPDR S&P 1500 Value Tilt ETF (VLU) and iShares Morningstar Value ETF (ILCV). The values are adjusted to include any dividend payments, if applicable.

Returns By Period

In the year-to-date period, VLU achieves a 12.99% return, which is significantly higher than ILCV's 7.75% return. Over the past 10 years, VLU has outperformed ILCV with an annualized return of 13.99%, while ILCV has yielded a comparatively lower 11.68% annualized return.

VLU

• 1D: -0.49%
• 1M: 3.04%
• YTD: 12.99%
• 6M: 13.61%
• 1Y: 29.22%
• 3Y*: 20.61%
• 5Y*: 11.91%
• 10Y*: 13.99%

ILCV

• 1D: -0.44%
• 1M: 2.76%
• YTD: 7.75%
• 6M: 7.41%
• 1Y: 26.58%
• 3Y*: 18.61%
• 5Y*: 11.42%
• 10Y*: 11.68%

*Multi-year figures are annualized to reflect compound growth (CAGR)

VLU vs. ILCV - Yearly Performance Comparison

	2026 (YTD)	2025	2024	2023	2022	2021	2020	2019	2018	2017
VLU SPDR S&P 1500 Value Tilt ETF	12.99%	16.70%	17.24%	17.18%	-8.24%	30.95%	9.91%	26.20%	-7.89%	18.16%
ILCV iShares Morningstar Value ETF	7.75%	18.79%	17.03%	14.43%	-7.02%	26.71%	-0.84%	25.19%	-6.24%	15.00%

Correlation

The correlation between VLU and ILCV is 0.93, indicating a strong positive relationship between their price movements. Combining them offers limited diversification - they tend to fall together during downturns.

	Correlation
Correlation (1Y) Calculated over the trailing 1-year period	0.93
Correlation (3Y) Calculated over the trailing 3-year period	0.96
Correlation (5Y) Calculated over the trailing 5-year period	0.97
Correlation (10Y) Calculated over the trailing 10-year period	0.87
Correlation (All Time) Calculated using the full available price history since Oct 26, 2012	0.73

The correlation between VLU and ILCV shifts across timeframes, from 0.73 (all time) to 0.97 (5 years), reflecting how their relationship changes across market environments.

VLU vs. ILCV - Sectors Allocation Comparison

Sectors	VLU	ILCV
Financial Services	18.8%	16.5%
Technology	17.8%	23.8%
Healthcare	11.7%	11.5%
Consumer Cyclical	10.4%	9.5%
Communication Services	8.8%	8.0%
Industrials	8.2%	8.8%
Consumer Defensive	7.4%	7.6%
Energy	7.2%	6.0%
Utilities	3.6%	3.5%
Real Estate	3.4%	2.0%
Basic Materials	2.6%	2.4%

Return for Risk

VLU vs. ILCV — Risk / Return Rank

Compare risk-adjusted metric ranks to identify better-performing investments over the past 12 months.

VLU

VLU Risk / Return Rank: 83
VLU Sharpe Ratio Rank: 82
VLU Sortino Ratio Rank: 83
VLU Omega Ratio Rank: 81
VLU Calmar Ratio Rank: 84
VLU Martin Ratio Rank: 86

ILCV

ILCV Risk / Return Rank: 82
ILCV Sharpe Ratio Rank: 82
ILCV Sortino Ratio Rank: 84
ILCV Omega Ratio Rank: 81
ILCV Calmar Ratio Rank: 79
ILCV Martin Ratio Rank: 83

The rank (0–100) shows how this investment's returns compare to the risk taken. Higher = better. Based on the past 12 months of data, combining Sharpe, Sortino, and other metrics used by quantitative funds and institutional investors.

VLU vs. ILCV - Risk-Adjusted Trends Comparison

This table presents a comparison of risk-adjusted performance metrics for SPDR S&P 1500 Value Tilt ETF (VLU) and iShares Morningstar Value ETF (ILCV). 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.

	VLU	ILCV	Difference
Sharpe ratio: Return per unit of total volatility	2.70	2.72	-0.02
Sortino ratio: Return per unit of downside risk	3.78	3.85	-0.07
Omega ratio: Gain probability vs. loss probability	1.49	1.50	0.00
Calmar ratio: Return relative to maximum drawdown	4.63	4.08	+0.55
Martin ratio: Return relative to average drawdown	18.56	16.87	+1.69
Data is calculated on a 1-year rolling basis and updated daily. The trend shows the change in the indicator over the past month.

VLU vs. ILCV - Sharpe Ratio Comparison

The current VLU Sharpe Ratio is 2.70, which is comparable to the ILCV Sharpe Ratio of 2.72. The chart below compares the historical Sharpe Ratios of VLU and ILCV, calculated using daily returns over the previous 12 months. A higher Sharpe Ratio indicates better risk-adjusted performance relative to the risk-free rate.

Sharpe Ratios by Period

	VLU	ILCV	Difference
Sharpe Ratio (1Y) Calculated over the trailing 1-year period	2.70	2.72	-0.02
Sharpe Ratio (5Y) Calculated over the trailing 5-year period	0.78	0.81	-0.03
Sharpe Ratio (10Y) Calculated over the trailing 10-year period	0.78	0.70	+0.07
Sharpe Ratio (All Time) Calculated using the full available price history	0.82	0.46	+0.36

Drawdowns

VLU vs. ILCV - Drawdown Comparison

The maximum VLU drawdown since its inception was -37.39%, smaller than the maximum ILCV drawdown of -58.63%. Use the drawdown chart below to compare losses from any high point for VLU and ILCV.

Drawdown Indicators

	VLU	ILCV	Difference
Max Drawdown Largest peak-to-trough decline	-37.39%	-58.63%	+21.24%
Max Drawdown (1Y) Largest decline over 1 year	-6.34%	-6.55%	+0.21%
Max Drawdown (3Y) Largest decline over 3 years	-16.22%	-14.95%	-1.27%
Max Drawdown (5Y) Largest decline over 5 years	-19.55%	-18.58%	-0.97%
Max Drawdown (10Y) Largest decline over 10 years	-37.39%	-35.53%	-1.86%
Current Drawdown Current decline from peak	-0.49%	-0.60%	+0.11%
Average Drawdown Average peak-to-trough decline	-3.74%	-9.32%	+5.58%
Ulcer Index Depth and duration of drawdowns from previous peaks	1.58%	1.58%	0.00%

Volatility

VLU vs. ILCV - Volatility Comparison

SPDR S&P 1500 Value Tilt ETF (VLU) has a higher volatility of 2.25% compared to iShares Morningstar Value ETF (ILCV) at 2.01%. This indicates that VLU's price experiences larger fluctuations and is considered to be riskier than ILCV based on this measure. The chart below showcases a comparison of their rolling one-month volatility.

Volatility by Period

	VLU	ILCV	Difference
Volatility (1M) Calculated over the trailing 1-month period	2.25%	2.01%	+0.24%
Volatility (6M) Calculated over the trailing 6-month period	7.70%	6.97%	+0.73%
Volatility (1Y) Calculated over the trailing 1-year period	10.90%	9.82%	+1.08%
Volatility (5Y) Calculated over the trailing 5-year period, annualized	15.40%	14.21%	+1.19%
Volatility (10Y) Calculated over the trailing 10-year period, annualized	18.09%	16.66%	+1.43%

VLU vs. ILCV - Expense Ratio Comparison

VLU has a 0.12% expense ratio, which is higher than ILCV's 0.04% expense ratio. However, both funds are considered low-cost compared to the broader market, where average expense ratios usually range from 0.3% to 0.9%.

Dividends

VLU vs. ILCV - Dividend Comparison

VLU's dividend yield for the trailing twelve months is around 1.62%, which matches ILCV's 1.63% yield.

Position	TTM	2025	2024	2023	2022	2021	2020	2019	2018	2017	2016	2015
ILCV iShares Morningstar Value ETF	1.63%	1.77%	1.99%	2.27%	2.32%	2.01%	2.96%	2.70%	2.93%	2.32%	2.76%	3.01%
VLU SPDR S&P 1500 Value Tilt ETF	1.62%	1.82%	2.00%	2.02%	2.16%	1.86%	1.98%	2.19%	2.57%	1.96%	2.14%	6.37%

Frequently Asked Questions

Can I hold both VLU and ILCV in my portfolio?

With a correlation of 0.93, VLU and ILCV move almost identically. Holding both adds very little diversification - you're essentially doubling your position in the same market segment. Choosing one is usually more capital-efficient.

Which is riskier, VLU or ILCV?

VLU has higher volatility (2.25%) compared to ILCV (2.01%). In terms of maximum drawdown, VLU dropped -37.39% vs ILCV's -58.63%.

Which ETF is better, VLU or ILCV?

On 10-year performance, VLU leads with 13.99% vs 11.68% for ILCV. On fees, ILCV is cheaper at 0.04% per year. On volatility, ILCV has been the lower-risk option at 2.01%. The better choice depends on whether you care most about return, fees, risk, or income.

Which ETF has performed better, VLU or ILCV?

Over the 10-year period, VLU has performed better with a 13.99% return vs 11.68%. Past performance does not guarantee future results, so compare this with risk, fees, and fund exposure.

Which ETF is cheaper, VLU or ILCV?

ILCV is cheaper with a 0.04% expense ratio, compared with 0.12% for VLU.

Which ETF pays a higher dividend yield, VLU or ILCV?

VLU and ILCV have nearly identical dividend yields, around 1.62%.

What is the main difference between VLU and ILCV?

VLU tracks S&P 1500 Low Valuation Tilt Index, while ILCV tracks Morningstar US Large-Mid Cap Broad Value Index. They also come from different issuers: State Street and iShares. Their fees differ too: 0.12% for VLU and 0.04% for ILCV.

Which has better risk-adjusted returns?

ILCV currently has the higher Sharpe Ratio (2.72 vs 2.70), 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.