Quick Verdict

SPY has a lower expense ratio. SPY delivered stronger 1-year returns. BBBS offers more diversification with 960 holdings.

Lower Fees: SPYHigher Returns: SPYMore Diversified: BBBS

Side-by-Side Comparison

MetricBBBSSPYWinner
Expense Ratio0.19%0.09%
AUM$180M$789.1B
Dividend Yield4.56%1.01%
Holdings1,353505
YTD Return+0.79%+13.79%
1Y Return+3.00%+23.66%
3Y Return (annualized)-+21.40%
5Y Return (annualized)-+13.37%
Volatility (annualized)2.0%15.3%
Max Drawdown-1.4%-56.5%
Fund FamilyBondBloxxState Street Investment Management
CategoryFixed IncomeEquity
InceptionJan 16, 2024Jan 22, 1993

BBBS vs SPY Performance

BondBloxx BBB Rated 1-5 Year Corporate Bond ETF (BBBS) 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 BBBS returned +3.00% while SPY returned +23.66%. Year to date, BBBS is up 0.79% versus a gain of 13.79% for SPY.

Risk: Volatility and Drawdowns

SPY has been the more volatile fund, with annualized monthly volatility of 15.3% compared with 2.0% for BBBS. 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 -1.4% for BBBS 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 0.38. They move independently enough that combining them can meaningfully diversify a portfolio.

Fees and Cost Over Time

BBBS 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, BBBS currently yields 4.56% against 1.01% for SPY.

Holdings Overlap

0.1%overlap

BBBS and SPY share 1 holdings out of 1462 unique holdings combined, representing a 0.1% weight overlap.

Moderate overlap means holding both could provide meaningful diversification benefits.

Top Shared Holdings

StockWeight in BBBSWeight in SPYDifference
KDP0.08%0.07%0.01%

Frequently Asked Questions

Which is cheaper, BBBS or SPY?

BBBS 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, BBBS or SPY?

Over the past year BBBS returned +3.00% vs +23.66% for SPY, so SPY leads on 1-year performance. Over the longest common window we track (3 years), BBBS annualized +4.89% vs +8.85% for SPY. Past performance does not guarantee future results.

Which is riskier, BBBS or SPY?

SPY has been the more volatile fund at 15.3% annualized versus 2.0% for BBBS. Worst drawdown: BBBS -1.4% vs SPY -56.5%.

Should I hold both BBBS and SPY?

BBBS and SPY have a monthly-return correlation of 0.38, so combining them can provide real diversification depending on your allocation goals.

What is the holdings overlap between BBBS and SPY?

BBBS and SPY share 1 common holdings with a 0.1% weight overlap. Combined, they hold 1462 unique securities.

Which pays a higher dividend, BBBS or SPY?

BBBS yields 4.56% while SPY yields 1.01%, so BBBS currently pays the higher dividend yield.

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