BLW vs SPY
BlackRock Limited Duration Income Trust vs State Street SPDR S&P 500 ETF Trust
Which is better, BLW or SPY?
Short Term High Yield Bond against Large Cap Blend.
SPY has a lower expense ratio. SPY led over 1Y, 3Y, 5Y and the full window. BLW is less concentrated, with 8.3% of the fund in its ten largest positions against 38.0%.
MarketXLS is not an investment adviser. This comparison is generated automatically from market data and is for information only. A Best mark means the better reading on that one measure, not a recommendation to buy.
Side-by-Side Comparison
| Metric | BLW | SPY |
|---|---|---|
| Expense Ratio | 4.48% | 0.09%Best |
| AUM | $514M | $804.7B |
| Dividend Yield | 10.31% | 0.98% |
| Holdings | 2,073 | 505 |
| YTD Return | -2.62% | +12.19%Best |
| 1Y Return | -2.26% | +18.53%Best |
| 3Y Return (annualized) | +7.95% | +20.88%Best |
| 5Y Return (annualized) | +2.51% | +12.69%Best |
| Volatility (annualized) | 12.1%Best | 14.5% |
| Max Drawdown | -53.5%Best | -56.5% |
| $10,000 over 5 years | $11,320 | $18,173Best |
| Top 10 Weight | 8.3%Best | 38.0% |
| Fund Family | BlackRock, Inc. (US) | State Street Investment Management |
| Category | Fixed Income | Equity |
| Style | Short Term High Yield Bond | Large Cap Blend |
| Inception | Jul 31, 2003 | Jan 22, 1993 |
Volatility and max drawdown are measured over the window both funds cover: Jul 29, 2003 to Sep 9, 2026 (23.1 years).
BLW vs SPY growth
Month-end closes. Both lines start at 0% in the first month shown, so the gap between them is the difference in growth across that window. The full view is available from the range buttons; it is not the opening view here because over the whole period one of these two funds moves so much further than the other that its line would sit flat on the axis.
BLW vs SPY Performance
BlackRock Limited Duration Income Trust (BLW) is an ETF from BlackRock, Inc. (US) and State Street SPDR S&P 500 ETF Trust (SPY) is an ETF from State Street Investment Management. Over the past year BLW returned -2.26% while SPY returned +18.53%. Year to date, BLW is down 2.62% versus a gain of 12.19% for SPY.
Over three years, BLW compounded at +7.95% per year against +20.88% for SPY; over five years the annualized figures are +2.51% and +12.69% respectively. Across the full 23-year window we track, SPY has the edge at +9.56% annualized vs +0.13%.
Past performance does not guarantee future results.
Risk: Volatility and Drawdowns
SPY has been the more volatile fund, with annualized monthly volatility of 14.5% 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 what each fund did in the worst stretch of the window measured above.
The two funds' monthly returns correlate at 0.62. They move together some of the time, and apart the rest.
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 10.31% against 0.98% for SPY.
Holdings Overlap
We hold position weights for 997 holdings in BLW and 504 in SPY, totalling 102.8% and 100.0% of the two funds. The two books name no position in common, so there is no overlap percentage to show.
The two holdings books were reported 216 days apart, BLW as of Dec 31, 2025 and SPY as of Aug 4, 2026, so some of the difference between them is the time between the two reports rather than the funds.
0 positions in common, counted across the 997 positions we hold weights for in BLW and 504 in SPY, against full books of 2,073 and 505.
What only one of them owns
Our book lists 495 positions for SPY that do not appear in our book for BLW (99.4% of the fund), and 968 for BLW that do not appear in SPY (102.8%).
Some of those will be the same company recorded under a different code in one of the two books, so the real difference in what you would own is no larger than this and may be smaller. We do not name the individual positions here for that reason.
You are not choosing between two funds in isolation.
Whichever of BLW and SPY you pick has to sit alongside everything else you own. Add the rest and see what the combination actually holds.
Free for up to 10 holdings. No account needed.
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, by $439 a year on a $10,000 investment.
Which performed better, BLW or SPY?
Over the past year BLW returned -2.26% vs +18.53% for SPY, so SPY leads on 1-year performance. Over the longest common window we track (23 years), BLW annualized +0.13% vs +9.56% for SPY. Past performance does not guarantee future results. This is information, not a recommendation.
Which is riskier, BLW or SPY?
SPY has been the more volatile fund at 14.5% 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 their returns are far enough apart for the mix to behave differently from either one alone. This is information, not a recommendation.
Which pays a higher dividend, BLW or SPY?
BLW yields 10.31% while SPY yields 0.98%, so BLW currently pays the higher dividend yield.
Is SPY better than BLW?
SPY has a lower expense ratio. SPY led over 1Y, 3Y, 5Y and the full window. BLW is less concentrated, with 8.3% of the fund in its ten largest positions against 38.0%. Which one suits a particular account depends on what it is for. This is information, not a recommendation.