BYLD vs SPY
iShares Yield Optimized Bond 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 505 holdings.
Side-by-Side Comparison
| Metric | BYLD | SPY | Winner |
|---|---|---|---|
| Expense Ratio | 0.13% | 0.09% | |
| AUM | $448M | $789.1B | |
| Dividend Yield | 5.34% | 1.01% | |
| Holdings | 13 | 505 | |
| YTD Return | +0.75% | +14.47% | |
| 1Y Return | +3.38% | +21.96% | |
| 3Y Return (annualized) | +6.27% | +21.70% | |
| 5Y Return (annualized) | +1.89% | +13.30% | |
| Volatility (annualized) | 4.6% | 15.3% | |
| Max Drawdown | -15.9% | -56.5% | |
| Fund Family | iShares by BlackRock (US) | State Street Investment Management | |
| Category | Fixed Income | Equity | |
| Inception | Apr 22, 2014 | Jan 22, 1993 |
BYLD vs SPY Performance
iShares Yield Optimized Bond ETF (BYLD) is a ETF from iShares by BlackRock (US) and State Street SPDR S&P 500 ETF Trust (SPY) is a ETF from State Street Investment Management. Over the past year BYLD returned +3.38% while SPY returned +21.96%. Year to date, BYLD is up 0.75% versus a gain of 14.47% for SPY.
Over three years, BYLD compounded at +6.27% per year against +21.70% for SPY; over five years the annualized figures are +1.89% and +13.30% respectively. Across the full 12-year window we track, SPY has the edge at +8.87% annualized vs +0.97%. 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 4.6% for BYLD. 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 -15.9% for BYLD 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 0.64. They move independently enough that combining them can meaningfully diversify a portfolio.
Fees and Cost Over Time
BYLD charges 0.13% per year while SPY charges 0.09%. On a $10,000 position that is $13 vs $9 annually, a gap of $4 per year that compounds over a long holding period. On income, BYLD currently yields 5.34% against 1.01% for SPY.
Holdings Overlap
BYLD and SPY share 4 holdings out of 15405 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, BYLD or SPY?
BYLD has an expense ratio of 0.13% while SPY charges 0.09%. SPY is the cheaper option. On a $10,000 investment, that is $4 per year of difference.
Which performed better, BYLD or SPY?
Over the past year BYLD returned +3.38% vs +21.96% for SPY, so SPY leads on 1-year performance. Over the longest common window we track (12 years), BYLD annualized +0.97% vs +8.87% for SPY. Past performance does not guarantee future results.
Which is riskier, BYLD or SPY?
SPY has been the more volatile fund at 15.3% annualized versus 4.6% for BYLD. Worst drawdown: BYLD -15.9% vs SPY -56.5%.
Should I hold both BYLD and SPY?
BYLD and SPY have a monthly-return correlation of 0.64, so combining them can provide real diversification depending on your allocation goals.
What is the holdings overlap between BYLD and SPY?
BYLD and SPY share 4 common holdings with a 0.0% weight overlap. Combined, they hold 15405 unique securities.
Which pays a higher dividend, BYLD or SPY?
BYLD yields 5.34% while SPY yields 1.01%, so BYLD currently pays the higher dividend yield.
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