BAI vs SPY
iShares AI Innovation and Tech Active ETF vs State Street SPDR S&P 500 ETF Trust
Which is better, BAI or SPY?
BAI has been ahead.
SPY has a lower expense ratio. BAI led over 1Y and the full window. SPY is less concentrated, with 37.8% of the fund in its ten largest positions against 41.5%.
MarketXLS is not an investment adviser. This comparison is generated automatically from market data and is for information only. A Best mark means the better reading on that one measure, not a recommendation to buy.
Side-by-Side Comparison
| Metric | BAI | SPY |
|---|---|---|
| Expense Ratio | 0.55% | 0.09%Best |
| AUM | $13.7B | $804.7B |
| Dividend Yield | 1.34% | 0.98% |
| Holdings | 55 | 505 |
| YTD Return | +27.65%Best | +10.96% |
| 1Y Return | +27.36%Best | +15.52% |
| 3Y Return (annualized) | - | +20.73% |
| 5Y Return (annualized) | - | +12.53% |
| Volatility (annualized) | 37.6% | 13.0%Best |
| Max Drawdown | -34.1% | -18.8%Best |
| $10,000 over 1.9 years | $17,542Best | $13,193 |
| Top 10 Weight | 41.5% | 37.8%Best |
| Fund Family | iShares by BlackRock (US) | State Street Investment Management |
| Category | Equity | Equity |
| Style | Large Cap Blend | Large Cap Blend |
| Inception | Oct 21, 2024 | Jan 22, 1993 |
Volatility and max drawdown, and the $10,000 over 1.9 years row, are measured over the window both funds cover: Oct 22, 2024 to Sep 16, 2026 (1.9 years).
BAI vs SPY growth
Month-end closes. Both lines start at 0% in the first month shown, so the gap between them is the difference in growth across that window. The full view covers the 1.9 years both funds cover.
BAI vs SPY Performance
iShares AI Innovation and Tech Active ETF (BAI) is an ETF from iShares by BlackRock (US) and State Street SPDR S&P 500 ETF Trust (SPY) is an ETF from State Street Investment Management. Over the past year BAI returned +27.36% while SPY returned +15.52%. Year to date, BAI is up 27.65% versus a gain of 10.96% for SPY.
Past performance does not guarantee future results.
Risk: Volatility and Drawdowns
BAI has been the more volatile fund, with annualized monthly volatility of 37.6% compared with 13.0% 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 -18.8% for SPY. Drawdown depth is what each fund did in the worst stretch of the window measured above.
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 1.34% against 0.98% for SPY.
Holdings Overlap
55.3% of BAI's money is in holdings SPY also owns. 30.8% of SPY's money is in holdings BAI also owns.
The two portfolios partly overlap.
20 positions in common, counted across the 50 positions we hold weights for in BAI and 504 in SPY, against full books of 55 and 505.
What only one of them owns
Our book lists 477 positions for SPY that do not appear in our book for BAI (68.5% of the fund), and 17 for BAI that do not appear in SPY (20.0%).
Some of those will be the same company recorded under a different code in one of the two books, so the real difference in what you would own is no larger than this and may be smaller. We do not name the individual positions here for that reason.
Top Shared Holdings
| Stock | Weight in BAI | Weight in SPY | Difference |
|---|---|---|---|
| NVDANvidia Corp | 5.34% | 8.01% | 2.67% |
| MUMicron Technology, Inc. | 6.37% | 1.60% | 4.77% |
| MSFTMicrosoft Corp | 2.14% | 5.66% | 3.52% |
| AVGOBroadcom Inc | 4.84% | 2.66% | 2.18% |
| AMDAdvanced Micro Devices Inc | 4.75% | 1.14% | 3.61% |
| AMZNAmazon.Com Inc | 2.03% | 3.79% | 1.76% |
| GOOGLAlphabet Inc,class A | 2.71% | 2.99% | 0.28% |
| LRCXLrcx Uw Equity | 4.12% | 0.55% | 3.57% |
| INTCIntel Corporation | 2.54% | 0.67% | 1.87% |
| LITELumentum Holdings Inc | 2.88% | 0.10% | 2.78% |
55.3% of BAI is already inside SPY.
You probably hold more than these two. Add the rest and see how much of the whole book is the same companies twice.
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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, by $46 a year on a $10,000 investment.
Which performed better, BAI or SPY?
Over the past year BAI returned +27.36% vs +15.52% for SPY, so BAI leads on 1-year performance. Over the longest common window we track (2 years), BAI annualized +34.42% vs +15.70% for SPY. Past performance does not guarantee future results. This is information, not a recommendation.
Which is riskier, BAI or SPY?
BAI has been the more volatile fund at 37.6% annualized versus 13.0% for SPY. Worst drawdown: BAI -34.1% vs SPY -18.8%.
Should I hold both BAI and SPY?
BAI and SPY have a monthly-return correlation of 0.80, so their returns are far enough apart for the mix to behave differently from either one alone. This is information, not a recommendation.
What is the holdings overlap between BAI and SPY?
55.3% of BAI's money is in holdings SPY also owns. 30.8% of SPY's is in holdings BAI also owns. They hold 20 positions in common, counted across the 50 positions we hold weights for in BAI and 504 in SPY.
Which pays a higher dividend, BAI or SPY?
BAI yields 1.34% while SPY yields 0.98%, so BAI currently pays the higher dividend yield.
Is SPY better than BAI?
SPY has a lower expense ratio. BAI led over 1Y and the full window. SPY is less concentrated, with 37.8% of the fund in its ten largest positions against 41.5%. Which one suits a particular account depends on what it is for. This is information, not a recommendation.