BME vs SPY
BlackRock Health Sciences Trust vs State Street SPDR S&P 500 ETF Trust
Quick Verdict
SPY has a lower expense ratio. BME delivered stronger 1-year returns. SPY offers more diversification with 505 holdings.
Side-by-Side Comparison
| Metric | BME | SPY | Winner |
|---|---|---|---|
| Expense Ratio | 1.14% | 0.09% | |
| AUM | $595M | $821.1B | |
| Dividend Yield | 7.05% | 1.01% | |
| Holdings | 156 | 505 | |
| YTD Return | +12.08% | +14.24% | |
| 1Y Return | +32.53% | +21.71% | |
| 3Y Return (annualized) | +10.85% | +22.10% | |
| 5Y Return (annualized) | +4.65% | +13.21% | |
| Volatility (annualized) | 17.1% | 15.3% | |
| Max Drawdown | -44.6% | -56.5% | |
| Fund Family | BlackRock, Inc. (US) | State Street Investment Management | |
| Category | Equity | Equity | |
| Inception | Mar 31, 2005 | Jan 22, 1993 |
BME vs SPY Performance
BlackRock Health Sciences Trust (BME) 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 BME returned +32.53% while SPY returned +21.71%. Year to date, BME is up 12.08% versus a gain of 14.24% for SPY.
Over three years, BME compounded at +10.85% per year against +22.10% for SPY; over five years the annualized figures are +4.65% and +13.21% respectively. Across the full 21-year window we track, SPY has the edge at +8.86% annualized vs +4.45%. Past performance does not guarantee future results.
Risk: Volatility and Drawdowns
BME has been the more volatile fund, with annualized monthly volatility of 17.1% 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 -44.6% for BME 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 0.66. They move independently enough that combining them can meaningfully diversify a portfolio.
Fees and Cost Over Time
BME charges 1.14% per year while SPY charges 0.09%. On a $10,000 position that is $114 vs $9 annually, a gap of $105 per year that compounds over a long holding period. On income, BME currently yields 7.05% against 1.01% for SPY.
Holdings Overlap
BME and SPY share 45 holdings out of 596 unique holdings combined, representing a 8.2% weight overlap.
Moderate overlap means holding both could provide meaningful diversification benefits.
Frequently Asked Questions
Which is cheaper, BME or SPY?
BME has an expense ratio of 1.14% while SPY charges 0.09%. SPY is the cheaper option. On a $10,000 investment, that is $105 per year of difference.
Which performed better, BME or SPY?
Over the past year BME returned +32.53% vs +21.71% for SPY, so BME leads on 1-year performance. Over the longest common window we track (21 years), BME annualized +4.45% vs +8.86% for SPY. Past performance does not guarantee future results.
Which is riskier, BME or SPY?
BME has been the more volatile fund at 17.1% annualized versus 15.3% for SPY. Worst drawdown: BME -44.6% vs SPY -56.5%.
Should I hold both BME and SPY?
BME and SPY have a monthly-return correlation of 0.66, so combining them can provide real diversification depending on your allocation goals.
What is the holdings overlap between BME and SPY?
BME and SPY share 45 common holdings with a 8.2% weight overlap. Combined, they hold 596 unique securities.
Which pays a higher dividend, BME or SPY?
BME yields 7.05% while SPY yields 1.01%, so BME currently pays the higher dividend yield.
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