BHK vs SPY
BlackRock Core Bond Trust vs State Street SPDR S&P 500 ETF Trust
Quick Verdict
SPY has a lower expense ratio. SPY delivered stronger 1-year returns. BHK offers more diversification with 1,627 holdings.
Side-by-Side Comparison
| Metric | BHK | SPY | Winner |
|---|---|---|---|
| Expense Ratio | 3.68% | 0.09% | |
| AUM | $677M | $821.1B | |
| Dividend Yield | 9.61% | 1.01% | |
| Holdings | 1,627 | 505 | |
| YTD Return | -0.02% | +12.22% | |
| 1Y Return | +2.89% | +20.83% | |
| 3Y Return (annualized) | +4.75% | +21.70% | |
| 5Y Return (annualized) | -3.83% | +12.98% | |
| Volatility (annualized) | 12.5% | 15.3% | |
| Max Drawdown | -45.8% | -56.5% | |
| Fund Family | BlackRock, Inc. (US) | State Street Investment Management | |
| Category | Fixed Income | Equity | |
| Inception | Nov 30, 2001 | Jan 22, 1993 |
BHK vs SPY Performance
BlackRock Core Bond Trust (BHK) 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 BHK returned +2.89% while SPY returned +20.83%. Year to date, BHK is down 0.02% versus a gain of 12.22% for SPY.
Over three years, BHK compounded at +4.75% per year against +21.70% for SPY; over five years the annualized figures are -3.83% and +12.98% respectively. Across the full 25-year window we track, SPY has the edge at +8.79% annualized vs -0.24%. 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 12.5% for BHK. 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 -45.8% for BHK 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 0.35. They move independently enough that combining them can meaningfully diversify a portfolio.
Fees and Cost Over Time
BHK charges 3.68% per year while SPY charges 0.09%. On a $10,000 position that is $368 vs $9 annually, a gap of $359 per year that compounds over a long holding period. On income, BHK currently yields 9.61% against 1.01% for SPY.
Holdings Overlap
BHK and SPY share 3 holdings out of 1564 unique holdings combined, representing a 0.4% weight overlap.
Moderate overlap means holding both could provide meaningful diversification benefits.
Frequently Asked Questions
Which is cheaper, BHK or SPY?
BHK has an expense ratio of 3.68% while SPY charges 0.09%. SPY is the cheaper option. On a $10,000 investment, that is $359 per year of difference.
Which performed better, BHK or SPY?
Over the past year BHK returned +2.89% vs +20.83% for SPY, so SPY leads on 1-year performance. Over the longest common window we track (25 years), BHK annualized -0.24% vs +8.79% for SPY. Past performance does not guarantee future results.
Which is riskier, BHK or SPY?
SPY has been the more volatile fund at 15.3% annualized versus 12.5% for BHK. Worst drawdown: BHK -45.8% vs SPY -56.5%.
Should I hold both BHK and SPY?
BHK and SPY have a monthly-return correlation of 0.35, so combining them can provide real diversification depending on your allocation goals.
What is the holdings overlap between BHK and SPY?
BHK and SPY share 3 common holdings with a 0.4% weight overlap. Combined, they hold 1564 unique securities.
Which pays a higher dividend, BHK or SPY?
BHK yields 9.61% while SPY yields 1.01%, so BHK currently pays the higher dividend yield.
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