BGY vs SPY

BGY vs SPY
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Quick Verdict

SPY has a lower expense ratio. SPY delivered stronger 1-year returns. SPY offers more diversification with 505 holdings.

Lower Fees: SPYHigher Returns: SPYMore Diversified: SPY

Side-by-Side Comparison

MetricBGYSPYWinner
Expense Ratio0.99%0.09%
AUM$592M$821.1B
Dividend Yield8.06%1.01%
Holdings127505
YTD Return+4.03%+12.22%
1Y Return+10.72%+20.83%
3Y Return (annualized)+12.78%+21.70%
5Y Return (annualized)+6.65%+12.98%
Volatility (annualized)19.1%15.3%
Max Drawdown-80.9%-56.5%
Fund FamilyBlackRock, Inc. (US)State Street Investment Management
CategoryEquityEquity
InceptionMay 25, 2007Jan 22, 1993

BGY vs SPY Performance

BlackRock Enhanced International Dividend Trust (BGY) 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 BGY returned +10.72% while SPY returned +20.83%. Year to date, BGY is up 4.03% versus a gain of 12.22% for SPY.

Over three years, BGY compounded at +12.78% per year against +21.70% for SPY; over five years the annualized figures are +6.65% and +12.98% respectively. Across the full 19-year window we track, SPY has the edge at +8.79% annualized vs -4.09%. Past performance does not guarantee future results.

Risk: Volatility and Drawdowns

BGY has been the more volatile fund, with annualized monthly volatility of 19.1% 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 -80.9% for BGY 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 0.77. They usually move together, but the gap leaves some room for diversification.

Fees and Cost Over Time

BGY charges 0.99% per year while SPY charges 0.09%. On a $10,000 position that is $99 vs $9 annually, a gap of $90 per year that compounds over a long holding period. On income, BGY currently yields 8.06% against 1.01% for SPY.

Holdings Overlap

0.6%overlap

BGY and SPY share 1 holdings out of 551 unique holdings combined, representing a 0.6% weight overlap.

Moderate overlap means holding both could provide meaningful diversification benefits.

Top Shared Holdings

StockWeight in BGYWeight in SPYDifference
GE0.98%0.59%0.39%

Frequently Asked Questions

Which is cheaper, BGY or SPY?

BGY has an expense ratio of 0.99% while SPY charges 0.09%. SPY is the cheaper option. On a $10,000 investment, that is $90 per year of difference.

Which performed better, BGY or SPY?

Over the past year BGY returned +10.72% vs +20.83% for SPY, so SPY leads on 1-year performance. Over the longest common window we track (19 years), BGY annualized -4.09% vs +8.79% for SPY. Past performance does not guarantee future results.

Which is riskier, BGY or SPY?

BGY has been the more volatile fund at 19.1% annualized versus 15.3% for SPY. Worst drawdown: BGY -80.9% vs SPY -56.5%.

Should I hold both BGY and SPY?

BGY and SPY have a monthly-return correlation of 0.77, so combining them can provide real diversification depending on your allocation goals.

What is the holdings overlap between BGY and SPY?

BGY and SPY share 1 common holdings with a 0.6% weight overlap. Combined, they hold 551 unique securities.

Which pays a higher dividend, BGY or SPY?

BGY yields 8.06% while SPY yields 1.01%, so BGY currently pays the higher dividend yield.

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