BND vs SPY
Vanguard Total Bond Market ETF vs State Street SPDR S&P 500 ETF Trust
Which is better, BND or SPY?
Intermediate Term Bond against Large Cap Blend.
BND has a lower expense ratio. SPY led over 1Y, 3Y, 5Y and the full window.
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 | BND | SPY |
|---|---|---|
| Expense Ratio | 0.03%Best | 0.09% |
| AUM | $160.9B | $804.7B |
| Dividend Yield | 4.04% | 0.98% |
| Holdings | 17,437 | 505 |
| YTD Return | -1.27% | +11.97%Best |
| 1Y Return | -0.88% | +16.40%Best |
| 3Y Return (annualized) | +4.04% | +21.10%Best |
| 5Y Return (annualized) | -0.61% | +12.88%Best |
| Volatility (annualized) | 4.6%Best | 15.5% |
| Max Drawdown | -19.6%Best | -56.5% |
| $10,000 over 5 years | $9,699 | $18,327Best |
| Fund Family | Vanguard (US) | State Street Investment Management |
| Category | Fixed Income | Equity |
| Style | Intermediate Term Bond | Large Cap Blend |
| Inception | Apr 3, 2007 | Jan 22, 1993 |
Not shown on this pair: Top 10 Weight.
Volatility and max drawdown are measured over the window both funds cover: Apr 10, 2007 to Sep 14, 2026 (19.4 years).
BND 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.
BND vs SPY Performance
Vanguard Total Bond Market ETF (BND) is an ETF from Vanguard (US) and State Street SPDR S&P 500 ETF Trust (SPY) is an ETF from State Street Investment Management. Over the past year BND returned -0.88% while SPY returned +16.40%. Year to date, BND is down 1.27% versus a gain of 11.97% for SPY.
Over three years, BND compounded at +4.04% per year against +21.10% for SPY; over five years the annualized figures are -0.61% and +12.88% respectively. Across the full 19-year window we track, SPY has the edge at +9.34% annualized vs +0.63%.
Past performance does not guarantee future results.
Risk: Volatility and Drawdowns
SPY has been the more volatile fund, with annualized monthly volatility of 15.5% compared with 4.6% for BND. 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 -19.6% for BND 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 0.25. They move largely independently of each other.
Fees and Cost Over Time
BND 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, BND currently yields 4.04% against 0.98% for SPY.
Holdings Overlap
At least 0.3% of SPY's money is in holdings BND also owns.
Stated as a floor: for BND, our book for it covers 1.5% of that fund, so a holding it does not list is one we cannot count as shared. The real figure is this or higher.
We cannot see either book well enough to say how much of this pair is duplicated.
1 positions in common, counted across the 16 positions we hold weights for in BND and 504 in SPY, against full books of 17,437 and 505.
Top Shared Holdings
| Stock | Weight in BND | Weight in SPY | Difference |
|---|---|---|---|
| UNPUnion Pacific Corp | 0.00% | 0.26% | 0.26% |
You are not choosing between two funds in isolation.
Whichever of BND 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, BND or SPY?
BND has an expense ratio of 0.03% while SPY charges 0.09%. BND is the cheaper option, by $6 a year on a $10,000 investment.
Which performed better, BND or SPY?
Over the past year BND returned -0.88% vs +16.40% for SPY, so SPY leads on 1-year performance. Over the longest common window we track (19 years), BND annualized +0.63% vs +9.34% for SPY. Past performance does not guarantee future results. This is information, not a recommendation.
Which is riskier, BND or SPY?
SPY has been the more volatile fund at 15.5% annualized versus 4.6% for BND. Worst drawdown: BND -19.6% vs SPY -56.5%.
Should I hold both BND and SPY?
BND and SPY have a monthly-return correlation of 0.25, 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, BND or SPY?
BND yields 4.04% while SPY yields 0.98%, so BND currently pays the higher dividend yield.
Is SPY better than BND?
BND has a lower expense ratio. SPY led over 1Y, 3Y, 5Y and the full window. Which one suits a particular account depends on what it is for. This is information, not a recommendation.