BLW vs SPY
BlackRock Limited Duration Income Trust vs State Street SPDR S&P 500 ETF Trust
Quick Verdict
SPY has a lower expense ratio. SPY delivered stronger 1-year returns. BLW offers more diversification with 2,073 holdings.
Side-by-Side Comparison
| Metric | BLW | SPY | Winner |
|---|---|---|---|
| Expense Ratio | 4.48% | 0.09% | |
| AUM | $520M | $821.1B | |
| Dividend Yield | 10.33% | 1.01% | |
| Holdings | 2,073 | 505 | |
| YTD Return | -0.20% | +13.17% | |
| 1Y Return | +0.82% | +21.53% | |
| 3Y Return (annualized) | +9.45% | +22.06% | |
| 5Y Return (annualized) | +3.58% | +13.35% | |
| Volatility (annualized) | 12.1% | 15.3% | |
| Max Drawdown | -53.5% | -56.5% | |
| Fund Family | BlackRock, Inc. (US) | State Street Investment Management | |
| Category | Fixed Income | Equity | |
| Inception | Jul 31, 2003 | Jan 22, 1993 |
BLW vs SPY Performance
BlackRock Limited Duration Income Trust (BLW) 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 BLW returned +0.82% while SPY returned +21.53%. Year to date, BLW is down 0.20% versus a gain of 13.17% for SPY.
Over three years, BLW compounded at +9.45% per year against +22.06% for SPY; over five years the annualized figures are +3.58% and +13.35% respectively. Across the full 23-year window we track, SPY has the edge at +8.82% 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 12.1% for BLW. 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 -53.5% for BLW 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 0.62. They move independently enough that combining them can meaningfully diversify a portfolio.
Fees and Cost Over Time
BLW charges 4.48% per year while SPY charges 0.09%. On a $10,000 position that is $448 vs $9 annually, a gap of $439 per year that compounds over a long holding period. On income, BLW currently yields 10.33% against 1.01% for SPY.
Holdings Overlap
BLW and SPY share 0 holdings out of 1501 unique holdings combined, representing a 0.0% weight overlap.
Moderate overlap means holding both could provide meaningful diversification benefits.
Frequently Asked Questions
Which is cheaper, BLW or SPY?
BLW has an expense ratio of 4.48% while SPY charges 0.09%. SPY is the cheaper option. On a $10,000 investment, that is $439 per year of difference.
Which performed better, BLW or SPY?
Over the past year BLW returned +0.82% vs +21.53% for SPY, so SPY leads on 1-year performance. Over the longest common window we track (23 years), BLW annualized +0.24% vs +8.82% for SPY. Past performance does not guarantee future results.
Which is riskier, BLW or SPY?
SPY has been the more volatile fund at 15.3% annualized versus 12.1% for BLW. Worst drawdown: BLW -53.5% vs SPY -56.5%.
Should I hold both BLW and SPY?
BLW and SPY have a monthly-return correlation of 0.62, so combining them can provide real diversification depending on your allocation goals.
What is the holdings overlap between BLW and SPY?
BLW and SPY share 0 common holdings with a 0.0% weight overlap. Combined, they hold 1501 unique securities.
Which pays a higher dividend, BLW or SPY?
BLW yields 10.33% while SPY yields 1.01%, so BLW currently pays the higher dividend yield.
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