BLV vs SPY
Vanguard Long-Term Bond ETF vs State Street SPDR S&P 500 ETF Trust
Quick Verdict
BLV has a lower expense ratio. SPY delivered stronger 1-year returns. BLV offers more diversification with 2765 holdings.
Side-by-Side Comparison
| Metric | BLV | SPY | Winner |
|---|---|---|---|
| Expense Ratio | 0.03% | 0.09% | |
| AUM | $6.0B | $789.1B | |
| Dividend Yield | 4.72% | 1.01% | |
| Holdings | 2,941 | 505 | |
| YTD Return | -2.87% | +13.75% | |
| 1Y Return | -0.77% | +22.91% | |
| 3Y Return (annualized) | +1.93% | +21.67% | |
| 5Y Return (annualized) | -4.85% | +13.32% | |
| Volatility (annualized) | 11.0% | 15.3% | |
| Max Drawdown | -40.7% | -56.5% | |
| Fund Family | Vanguard (US) | State Street Investment Management | |
| Category | Fixed Income | Equity | |
| Inception | Apr 3, 2007 | Jan 22, 1993 |
BLV vs SPY Performance
Vanguard Long-Term Bond ETF (BLV) is a ETF from Vanguard (US) and State Street SPDR S&P 500 ETF Trust (SPY) is a ETF from State Street Investment Management. Over the past year BLV returned -0.77% while SPY returned +22.91%. Year to date, BLV is down 2.87% versus a gain of 13.75% for SPY.
Over three years, BLV compounded at +1.93% per year against +21.67% for SPY; over five years the annualized figures are -4.85% and +13.32% respectively. Across the full 19-year window we track, SPY has the edge at +8.85% annualized vs +0.50%. 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 11.0% for BLV. 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 -40.7% for BLV 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 0.20. They move independently enough that combining them can meaningfully diversify a portfolio.
Fees and Cost Over Time
BLV charges 0.03% per year while SPY charges 0.09%. On a $10,000 position that is $3 vs $9 annually, a gap of $6 per year that compounds over a long holding period. On income, BLV currently yields 4.72% against 1.01% for SPY.
Holdings Overlap
Frequently Asked Questions
Which is cheaper, BLV or SPY?
BLV has an expense ratio of 0.03% while SPY charges 0.09%. BLV is the cheaper option. On a $10,000 investment, that is $6 per year of difference.
Which performed better, BLV or SPY?
Over the past year BLV returned -0.77% vs +22.91% for SPY, so SPY leads on 1-year performance. Over the longest common window we track (19 years), BLV annualized +0.50% vs +8.85% for SPY. Past performance does not guarantee future results.
Which is riskier, BLV or SPY?
SPY has been the more volatile fund at 15.3% annualized versus 11.0% for BLV. Worst drawdown: BLV -40.7% vs SPY -56.5%.
Should I hold both BLV and SPY?
BLV and SPY have a monthly-return correlation of 0.20, so combining them can provide real diversification depending on your allocation goals.
What is the holdings overlap between BLV and SPY?
BLV and SPY share 2 common holdings with a 0.0% weight overlap. Combined, they hold 3266 unique securities.
Which pays a higher dividend, BLV or SPY?
BLV yields 4.72% while SPY yields 1.01%, so BLV currently pays the higher dividend yield.
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