BTZ vs SPY
BlackRock Credit Allocation Income Trust vs State Street SPDR S&P 500 ETF Trust
Quick Verdict
SPY has a lower expense ratio. SPY delivered stronger 1-year returns. BTZ offers more diversification with 2,036 holdings.
Side-by-Side Comparison
| Metric | BTZ | SPY | Winner |
|---|---|---|---|
| Expense Ratio | 1.12% | 0.09% | |
| AUM | $1.0B | $821.1B | |
| Dividend Yield | 9.35% | 1.01% | |
| Holdings | 2,036 | 505 | |
| YTD Return | +1.18% | +12.22% | |
| 1Y Return | +3.17% | +20.83% | |
| 3Y Return (annualized) | +11.48% | +21.70% | |
| 5Y Return (annualized) | +1.04% | +12.98% | |
| Volatility (annualized) | 18.2% | 15.3% | |
| Max Drawdown | -80.2% | -56.5% | |
| Fund Family | BlackRock, Inc. (US) | State Street Investment Management | |
| Category | Fixed Income | Equity | |
| Inception | Dec 27, 2006 | Jan 22, 1993 |
BTZ vs SPY Performance
BlackRock Credit Allocation Income Trust (BTZ) 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 BTZ returned +3.17% while SPY returned +20.83%. Year to date, BTZ is up 1.18% versus a gain of 12.22% for SPY.
Over three years, BTZ compounded at +11.48% per year against +21.70% for SPY; over five years the annualized figures are +1.04% and +12.98% respectively. Across the full 20-year window we track, SPY has the edge at +8.79% annualized vs -1.99%. Past performance does not guarantee future results.
Risk: Volatility and Drawdowns
BTZ has been the more volatile fund, with annualized monthly volatility of 18.2% 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 -80.2% for BTZ 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 0.65. They move independently enough that combining them can meaningfully diversify a portfolio.
Fees and Cost Over Time
BTZ charges 1.12% per year while SPY charges 0.09%. On a $10,000 position that is $112 vs $9 annually, a gap of $103 per year that compounds over a long holding period. On income, BTZ currently yields 9.35% against 1.01% for SPY.
Holdings Overlap
BTZ and SPY share 0 holdings out of 1645 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, BTZ or SPY?
BTZ has an expense ratio of 1.12% while SPY charges 0.09%. SPY is the cheaper option. On a $10,000 investment, that is $103 per year of difference.
Which performed better, BTZ or SPY?
Over the past year BTZ returned +3.17% vs +20.83% for SPY, so SPY leads on 1-year performance. Over the longest common window we track (20 years), BTZ annualized -1.99% vs +8.79% for SPY. Past performance does not guarantee future results.
Which is riskier, BTZ or SPY?
BTZ has been the more volatile fund at 18.2% annualized versus 15.3% for SPY. Worst drawdown: BTZ -80.2% vs SPY -56.5%.
Should I hold both BTZ and SPY?
BTZ and SPY have a monthly-return correlation of 0.65, so combining them can provide real diversification depending on your allocation goals.
What is the holdings overlap between BTZ and SPY?
BTZ and SPY share 0 common holdings with a 0.0% weight overlap. Combined, they hold 1645 unique securities.
Which pays a higher dividend, BTZ or SPY?
BTZ yields 9.35% while SPY yields 1.01%, so BTZ currently pays the higher dividend yield.
Popular ETF Comparisons
Get Full ETF Analytics
Access complete holdings data, overlap analysis, screener tools, and more with FundXLS.