BSTP vs SPY

Quick Verdict

SPY has a lower expense ratio. SPY delivered stronger 1-year returns. SPY offers more diversification with 503 holdings.

Lower Fees: SPYHigher Returns: SPYMore Diversified: SPY

Side-by-Side Comparison

MetricBSTPSPYWinner
Expense Ratio0.89%0.09%
AUM$60M$789.1B
Dividend Yield0.00%1.01%
Holdings6505
YTD Return+8.25%+13.68%
1Y Return+13.39%+21.53%
3Y Return (annualized)+13.84%+21.44%
5Y Return (annualized)-+13.18%
Volatility (annualized)11.0%15.3%
Max Drawdown-16.7%-56.5%
Fund FamilyInnovator ETFs TrustState Street Investment Management
CategoryAlternativeEquity
InceptionMar 7, 2022Jan 22, 1993

BSTP vs SPY Performance

Innovator Buffer Step Up Strategy ETF (BSTP) is a ETF from Innovator ETFs Trust and State Street SPDR S&P 500 ETF Trust (SPY) is a ETF from State Street Investment Management. Over the past year BSTP returned +13.39% while SPY returned +21.53%. Year to date, BSTP is up 8.25% versus a gain of 13.68% for SPY.

Over three years, BSTP compounded at +13.84% per year against +21.44% for SPY. Across the full 4-year window we track, BSTP has the edge at +10.99% annualized vs +8.85%. 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 11.0% for BSTP. 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 -16.7% for BSTP 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 0.99. They move almost in lockstep, so holding both mostly duplicates the same exposure.

Fees and Cost Over Time

BSTP charges 0.89% per year while SPY charges 0.09%. On a $10,000 position that is $89 vs $9 annually, a gap of $80 per year that compounds over a long holding period. On income, BSTP currently yields 0.00% against 1.01% for SPY.

Frequently Asked Questions

Which is cheaper, BSTP or SPY?

BSTP has an expense ratio of 0.89% while SPY charges 0.09%. SPY is the cheaper option. On a $10,000 investment, that is $80 per year of difference.

Which performed better, BSTP or SPY?

Over the past year BSTP returned +13.39% vs +21.53% for SPY, so SPY leads on 1-year performance. Over the longest common window we track (4 years), BSTP annualized +10.99% vs +8.85% for SPY. Past performance does not guarantee future results.

Which is riskier, BSTP or SPY?

SPY has been the more volatile fund at 15.3% annualized versus 11.0% for BSTP. Worst drawdown: BSTP -16.7% vs SPY -56.5%.

Should I hold both BSTP and SPY?

BSTP and SPY have a monthly-return correlation of 0.99, so they move almost identically. Holding both adds little diversification - most investors pick one, usually on fees or the specific index tracked.

Which pays a higher dividend, BSTP or SPY?

BSTP yields 0.00% while SPY yields 1.01%, so SPY currently pays the higher dividend yield.

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