BNDD vs SPY
Quadratic Deflation ETF vs State Street SPDR S&P 500 ETF Trust
Quick Verdict
SPY has a lower expense ratio. SPY delivered stronger 1-year returns. SPY offers more diversification with 503 holdings.
Side-by-Side Comparison
| Metric | BNDD | SPY | Winner |
|---|---|---|---|
| Expense Ratio | 1.02% | 0.09% | |
| AUM | $21M | $789.1B | |
| Dividend Yield | 3.82% | 1.01% | |
| Holdings | 4 | 505 | |
| YTD Return | +2.39% | +13.75% | |
| 1Y Return | +0.87% | +22.91% | |
| 3Y Return (annualized) | -4.18% | +21.67% | |
| 5Y Return (annualized) | -4.65% | +13.32% | |
| Volatility (annualized) | 11.4% | 15.3% | |
| Max Drawdown | -30.9% | -56.5% | |
| Fund Family | KraneShares | State Street Investment Management | |
| Category | Fixed Income | Equity | |
| Inception | Sep 20, 2021 | Jan 22, 1993 |
BNDD vs SPY Performance
Quadratic Deflation ETF (BNDD) is a ETF from KraneShares and State Street SPDR S&P 500 ETF Trust (SPY) is a ETF from State Street Investment Management. Over the past year BNDD returned +0.87% while SPY returned +22.91%. Year to date, BNDD is up 2.39% versus a gain of 13.75% for SPY.
Over three years, BNDD compounded at -4.18% per year against +21.67% for SPY; over five years the annualized figures are -4.65% and +13.32% respectively. Across the full 5-year window we track, SPY has the edge at +8.85% annualized vs -4.65%. 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 11.4% for BNDD. 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 -30.9% for BNDD 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 0.39. They move independently enough that combining them can meaningfully diversify a portfolio.
Fees and Cost Over Time
BNDD charges 1.02% per year while SPY charges 0.09%. On a $10,000 position that is $102 vs $9 annually, a gap of $93 per year that compounds over a long holding period. On income, BNDD currently yields 3.82% against 1.01% for SPY.
Holdings Overlap
BNDD and SPY share 0 holdings out of 504 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, BNDD or SPY?
BNDD has an expense ratio of 1.02% while SPY charges 0.09%. SPY is the cheaper option. On a $10,000 investment, that is $93 per year of difference.
Which performed better, BNDD or SPY?
Over the past year BNDD returned +0.87% vs +22.91% for SPY, so SPY leads on 1-year performance. Over the longest common window we track (5 years), BNDD annualized -4.65% vs +8.85% for SPY. Past performance does not guarantee future results.
Which is riskier, BNDD or SPY?
SPY has been the more volatile fund at 15.3% annualized versus 11.4% for BNDD. Worst drawdown: BNDD -30.9% vs SPY -56.5%.
Should I hold both BNDD and SPY?
BNDD and SPY have a monthly-return correlation of 0.39, so combining them can provide real diversification depending on your allocation goals.
What is the holdings overlap between BNDD and SPY?
BNDD and SPY share 0 common holdings with a 0.0% weight overlap. Combined, they hold 504 unique securities.
Which pays a higher dividend, BNDD or SPY?
BNDD yields 3.82% while SPY yields 1.01%, so BNDD currently pays the higher dividend yield.
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