BALI vs SPY
iShares US Large Cap Premium Income Active ETF vs State Street SPDR S&P 500 ETF Trust
Quick Verdict
SPY has a lower expense ratio. SPY delivered stronger 1-year returns. SPY offers more diversification with 505 holdings.
Side-by-Side Comparison
| Metric | BALI | SPY | Winner |
|---|---|---|---|
| Expense Ratio | 0.35% | 0.09% | |
| AUM | $1.4B | $821.1B | |
| Dividend Yield | 7.87% | 1.01% | |
| Holdings | 201 | 505 | |
| YTD Return | +11.73% | +12.22% | |
| 1Y Return | +18.91% | +20.83% | |
| 3Y Return (annualized) | +20.56% | +21.70% | |
| 5Y Return (annualized) | - | +12.98% | |
| Volatility (annualized) | 10.3% | 15.3% | |
| Max Drawdown | -16.6% | -56.5% | |
| Fund Family | BlackRock, Inc. (US) | State Street Investment Management | |
| Category | Equity | Equity | |
| Inception | Sep 26, 2023 | Jan 22, 1993 |
BALI vs SPY Performance
iShares US Large Cap Premium Income Active ETF (BALI) is a ETF from BlackRock, Inc. (US) and State Street SPDR S&P 500 ETF Trust (SPY) is a ETF from State Street Investment Management. Over the past year BALI returned +18.91% while SPY returned +20.83%. Year to date, BALI is up 11.73% versus a gain of 12.22% for SPY.
Over three years, BALI compounded at +20.56% per year against +21.70% for SPY. Across the full 3-year window we track, BALI has the edge at +20.56% annualized vs +8.79%. Past performance does not guarantee future results.
Risk: Volatility and Drawdowns
SPY has been the more volatile fund, with annualized monthly volatility of 15.3% compared with 10.3% for BALI. 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 -16.6% for BALI 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 0.98. They move almost in lockstep, so holding both mostly duplicates the same exposure.
Fees and Cost Over Time
BALI charges 0.35% per year while SPY charges 0.09%. On a $10,000 position that is $35 vs $9 annually, a gap of $26 per year that compounds over a long holding period. On income, BALI currently yields 7.87% against 1.01% for SPY.
Holdings Overlap
BALI and SPY share 116 holdings out of 587 unique holdings combined, representing a 59.7% weight overlap.
High overlap means holding both may not provide much additional diversification.
Frequently Asked Questions
Which is cheaper, BALI or SPY?
BALI has an expense ratio of 0.35% while SPY charges 0.09%. SPY is the cheaper option. On a $10,000 investment, that is $26 per year of difference.
Which performed better, BALI or SPY?
Over the past year BALI returned +18.91% vs +20.83% for SPY, so SPY leads on 1-year performance. Over the longest common window we track (3 years), BALI annualized +20.56% vs +8.79% for SPY. Past performance does not guarantee future results.
Which is riskier, BALI or SPY?
SPY has been the more volatile fund at 15.3% annualized versus 10.3% for BALI. Worst drawdown: BALI -16.6% vs SPY -56.5%.
Should I hold both BALI and SPY?
BALI and SPY have a monthly-return correlation of 0.98, so they move almost identically. Holding both adds little diversification - most investors pick one, usually on fees or the specific index tracked.
What is the holdings overlap between BALI and SPY?
BALI and SPY share 116 common holdings with a 59.7% weight overlap. Combined, they hold 587 unique securities.
Which pays a higher dividend, BALI or SPY?
BALI yields 7.87% while SPY yields 1.01%, so BALI currently pays the higher dividend yield.
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