BAI vs SPY

Quick Verdict

SPY has a lower expense ratio. BAI delivered stronger 1-year returns. SPY offers more diversification with 503 holdings.

Lower Fees: SPYHigher Returns: BAIMore Diversified: SPY

Side-by-Side Comparison

MetricBAISPYWinner
Expense Ratio0.55%0.09%
AUM$12.8B$789.1B
Dividend Yield1.17%1.01%
Holdings59505
YTD Return+31.79%+13.79%
1Y Return+43.92%+23.66%
3Y Return (annualized)-+21.40%
5Y Return (annualized)-+13.37%
Volatility (annualized)38.4%15.3%
Max Drawdown-34.1%-56.5%
Fund FamilyiShares by BlackRock (US)State Street Investment Management
CategoryEquityEquity
InceptionOct 21, 2024Jan 22, 1993

BAI vs SPY Performance

iShares AI Innovation and Tech Active ETF (BAI) is a ETF from iShares by BlackRock (US) and State Street SPDR S&P 500 ETF Trust (SPY) is a ETF from State Street Investment Management. Over the past year BAI returned +43.92% while SPY returned +23.66%. Year to date, BAI is up 31.79% versus a gain of 13.79% for SPY.

Risk: Volatility and Drawdowns

BAI has been the more volatile fund, with annualized monthly volatility of 38.4% compared with 15.3% for SPY. Lower volatility generally means a smoother ride, though it often comes with lower long-run returns.

The deepest peak-to-trough decline in our data was -34.1% for BAI and -56.5% for SPY. Drawdown depth is worth weighing if you expect to sell during market stress rather than ride it out.

The two funds' monthly returns correlate at 0.80. They usually move together, but the gap leaves some room for diversification.

Fees and Cost Over Time

BAI charges 0.55% per year while SPY charges 0.09%. On a $10,000 position that is $55 vs $9 annually, a gap of $46 per year that compounds over a long holding period. On income, BAI currently yields 1.17% against 1.01% for SPY.

Holdings Overlap

17.9%overlap

BAI and SPY share 19 holdings out of 528 unique holdings combined, representing a 17.9% weight overlap.

Moderate overlap means holding both could provide meaningful diversification benefits.

Top Shared Holdings

StockWeight in BAIWeight in SPYDifference
NVDA4.08%7.31%3.23%
MU6.13%1.71%4.42%
AVGO4.20%2.73%1.47%
AMDProProPro
GOOGLProProPro
INTCProProPro
WDCProProPro
SNDKProProPro
TSLAProProPro
LITEProProPro
See all 10 holdings BAI shares with SPY
Exact weights in each fund and the difference, for every overlapping position.
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Frequently Asked Questions

Which is cheaper, BAI or SPY?

BAI has an expense ratio of 0.55% while SPY charges 0.09%. SPY is the cheaper option. On a $10,000 investment, that is $46 per year of difference.

Which performed better, BAI or SPY?

Over the past year BAI returned +43.92% vs +23.66% for SPY, so BAI leads on 1-year performance. Over the longest common window we track (2 years), BAI annualized +39.33% vs +8.85% for SPY. Past performance does not guarantee future results.

Which is riskier, BAI or SPY?

BAI has been the more volatile fund at 38.4% annualized versus 15.3% for SPY. Worst drawdown: BAI -34.1% vs SPY -56.5%.

Should I hold both BAI and SPY?

BAI and SPY have a monthly-return correlation of 0.80, so combining them can provide real diversification depending on your allocation goals.

What is the holdings overlap between BAI and SPY?

BAI and SPY share 19 common holdings with a 17.9% weight overlap. Combined, they hold 528 unique securities.

Which pays a higher dividend, BAI or SPY?

BAI yields 1.17% while SPY yields 1.01%, so BAI currently pays the higher dividend yield.

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