BBBI vs SPY

Quick Verdict

SPY has a lower expense ratio. SPY delivered stronger 1-year returns. BBBI offers more diversification with 831 holdings.

Lower Fees: SPYHigher Returns: SPYMore Diversified: BBBI

Side-by-Side Comparison

MetricBBBISPYWinner
Expense Ratio0.19%0.09%
AUM$169M$789.1B
Dividend Yield4.77%1.01%
Holdings1,017505
YTD Return-0.61%+13.39%
1Y Return+2.40%+22.52%
3Y Return (annualized)-+21.36%
5Y Return (annualized)-+13.19%
Volatility (annualized)4.5%15.3%
Max Drawdown-4.1%-56.5%
Fund FamilyBondBloxxState Street Investment Management
CategoryFixed IncomeEquity
InceptionJan 16, 2024Jan 22, 1993

BBBI vs SPY Performance

BondBloxx BBB Rated 5-10 Year Corporate Bond ETF (BBBI) is a ETF from BondBloxx and State Street SPDR S&P 500 ETF Trust (SPY) is a ETF from State Street Investment Management. Over the past year BBBI returned +2.40% while SPY returned +22.52%. Year to date, BBBI is down 0.61% versus a gain of 13.39% for SPY.

Risk: Volatility and Drawdowns

SPY has been the more volatile fund, with annualized monthly volatility of 15.3% compared with 4.5% for BBBI. 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 -4.1% for BBBI 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 0.47. They move independently enough that combining them can meaningfully diversify a portfolio.

Fees and Cost Over Time

BBBI charges 0.19% per year while SPY charges 0.09%. On a $10,000 position that is $19 vs $9 annually, a gap of $10 per year that compounds over a long holding period. On income, BBBI currently yields 4.77% against 1.01% for SPY.

Holdings Overlap

0.1%overlap

BBBI and SPY share 2 holdings out of 1332 unique holdings combined, representing a 0.1% weight overlap.

Moderate overlap means holding both could provide meaningful diversification benefits.

Top Shared Holdings

StockWeight in BBBIWeight in SPYDifference
AON0.08%0.12%0.04%
CNP0.07%0.04%0.03%

Frequently Asked Questions

Which is cheaper, BBBI or SPY?

BBBI has an expense ratio of 0.19% while SPY charges 0.09%. SPY is the cheaper option. On a $10,000 investment, that is $10 per year of difference.

Which performed better, BBBI or SPY?

Over the past year BBBI returned +2.40% vs +22.52% for SPY, so SPY leads on 1-year performance. Over the longest common window we track (3 years), BBBI annualized +5.05% vs +8.84% for SPY. Past performance does not guarantee future results.

Which is riskier, BBBI or SPY?

SPY has been the more volatile fund at 15.3% annualized versus 4.5% for BBBI. Worst drawdown: BBBI -4.1% vs SPY -56.5%.

Should I hold both BBBI and SPY?

BBBI and SPY have a monthly-return correlation of 0.47, so combining them can provide real diversification depending on your allocation goals.

What is the holdings overlap between BBBI and SPY?

BBBI and SPY share 2 common holdings with a 0.1% weight overlap. Combined, they hold 1332 unique securities.

Which pays a higher dividend, BBBI or SPY?

BBBI yields 4.77% while SPY yields 1.01%, so BBBI currently pays the higher dividend yield.

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