BCAT vs SPY
BlackRock Capital Allocation Term Trust vs State Street SPDR S&P 500 ETF Trust
Quick Verdict
SPY has a lower expense ratio. BCAT delivered stronger 1-year returns. BCAT offers more diversification with 917 holdings.
Side-by-Side Comparison
| Metric | BCAT | SPY | Winner |
|---|---|---|---|
| Expense Ratio | 1.41% | 0.09% | |
| AUM | $1.6B | $821.1B | |
| Dividend Yield | 22.04% | 1.01% | |
| Holdings | 917 | 505 | |
| YTD Return | +27.13% | +13.17% | |
| 1Y Return | +32.18% | +21.53% | |
| 3Y Return (annualized) | +23.04% | +22.06% | |
| 5Y Return (annualized) | +9.18% | +13.35% | |
| Volatility (annualized) | 14.8% | 15.3% | |
| Max Drawdown | -36.1% | -56.5% | |
| Fund Family | BlackRock, Inc. (US) | State Street Investment Management | |
| Category | Allocation/Balanced | Equity | |
| Inception | Sep 25, 2020 | Jan 22, 1993 |
BCAT vs SPY Performance
BlackRock Capital Allocation Term Trust (BCAT) 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 BCAT returned +32.18% while SPY returned +21.53%. Year to date, BCAT is up 27.13% versus a gain of 13.17% for SPY.
Over three years, BCAT compounded at +23.04% per year against +22.06% for SPY; over five years the annualized figures are +9.18% and +13.35% respectively. Across the full 6-year window we track, BCAT has the edge at +9.39% annualized vs +8.82%. 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 14.8% for BCAT. 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 -36.1% for BCAT 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
BCAT charges 1.41% per year while SPY charges 0.09%. On a $10,000 position that is $141 vs $9 annually, a gap of $132 per year that compounds over a long holding period. On income, BCAT currently yields 22.04% against 1.01% for SPY.
Holdings Overlap
BCAT and SPY share 90 holdings out of 730 unique holdings combined, representing a 30.4% weight overlap.
Moderate overlap means holding both could provide meaningful diversification benefits.
Frequently Asked Questions
Which is cheaper, BCAT or SPY?
BCAT has an expense ratio of 1.41% while SPY charges 0.09%. SPY is the cheaper option. On a $10,000 investment, that is $132 per year of difference.
Which performed better, BCAT or SPY?
Over the past year BCAT returned +32.18% vs +21.53% for SPY, so BCAT leads on 1-year performance. Over the longest common window we track (6 years), BCAT annualized +9.39% vs +8.82% for SPY. Past performance does not guarantee future results.
Which is riskier, BCAT or SPY?
SPY has been the more volatile fund at 15.3% annualized versus 14.8% for BCAT. Worst drawdown: BCAT -36.1% vs SPY -56.5%.
Should I hold both BCAT and SPY?
BCAT 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 BCAT and SPY?
BCAT and SPY share 90 common holdings with a 30.4% weight overlap. Combined, they hold 730 unique securities.
Which pays a higher dividend, BCAT or SPY?
BCAT yields 22.04% while SPY yields 1.01%, so BCAT currently pays the higher dividend yield.
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