BDJ vs SPY
Blackrock Enhanced Equity Dividend Trust vs State Street SPDR S&P 500 ETF Trust
Quick Verdict
SPY has a lower expense ratio. BDJ delivered stronger 1-year returns. SPY offers more diversification with 503 holdings.
Side-by-Side Comparison
| Metric | BDJ | SPY | Winner |
|---|---|---|---|
| Expense Ratio | 0.84% | 0.09% | |
| AUM | $1.8B | $789.1B | |
| Dividend Yield | 8.39% | 1.01% | |
| Holdings | 307 | 505 | |
| YTD Return | +10.35% | +13.68% | |
| 1Y Return | +21.65% | +21.53% | |
| 3Y Return (annualized) | +16.34% | +21.44% | |
| 5Y Return (annualized) | +9.15% | +13.18% | |
| Volatility (annualized) | 17.5% | 15.3% | |
| Max Drawdown | -67.3% | -56.5% | |
| Fund Family | BlackRock, Inc. (US) | State Street Investment Management | |
| Category | Alternative | Equity | |
| Inception | Aug 26, 2005 | Jan 22, 1993 |
BDJ vs SPY Performance
Blackrock Enhanced Equity Dividend Trust (BDJ) 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 BDJ returned +21.65% while SPY returned +21.53%. Year to date, BDJ is up 10.35% versus a gain of 13.68% for SPY.
Over three years, BDJ compounded at +16.34% per year against +21.44% for SPY; over five years the annualized figures are +9.15% and +13.18% respectively. Across the full 21-year window we track, SPY has the edge at +8.85% annualized vs +0.45%. Past performance does not guarantee future results.
Risk: Volatility and Drawdowns
BDJ has been the more volatile fund, with annualized monthly volatility of 17.5% compared with 15.3% 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 -67.3% for BDJ 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 0.76. They usually move together, but the gap leaves some room for diversification.
Fees and Cost Over Time
BDJ charges 0.84% per year while SPY charges 0.09%. On a $10,000 position that is $84 vs $9 annually, a gap of $75 per year that compounds over a long holding period. On income, BDJ currently yields 8.39% against 1.01% for SPY.
Holdings Overlap
BDJ and SPY share 60 holdings out of 528 unique holdings combined, representing a 20.4% weight overlap.
Moderate overlap means holding both could provide meaningful diversification benefits.
Frequently Asked Questions
Which is cheaper, BDJ or SPY?
BDJ has an expense ratio of 0.84% while SPY charges 0.09%. SPY is the cheaper option. On a $10,000 investment, that is $75 per year of difference.
Which performed better, BDJ or SPY?
Over the past year BDJ returned +21.65% vs +21.53% for SPY, so BDJ leads on 1-year performance. Over the longest common window we track (21 years), BDJ annualized +0.45% vs +8.85% for SPY. Past performance does not guarantee future results.
Which is riskier, BDJ or SPY?
BDJ has been the more volatile fund at 17.5% annualized versus 15.3% for SPY. Worst drawdown: BDJ -67.3% vs SPY -56.5%.
Should I hold both BDJ and SPY?
BDJ and SPY have a monthly-return correlation of 0.76, so combining them can provide real diversification depending on your allocation goals.
What is the holdings overlap between BDJ and SPY?
BDJ and SPY share 60 common holdings with a 20.4% weight overlap. Combined, they hold 528 unique securities.
Which pays a higher dividend, BDJ or SPY?
BDJ yields 8.39% while SPY yields 1.01%, so BDJ currently pays the higher dividend yield.
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