CGCB vs SPY
Capital Group Core 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. CGCB offers more diversification with 766 holdings.
Side-by-Side Comparison
| Metric | CGCB | SPY | Winner |
|---|---|---|---|
| Expense Ratio | 0.27% | 0.09% | |
| AUM | $6.4B | $821.1B | |
| Dividend Yield | 4.27% | 1.01% | |
| Holdings | 766 | 505 | |
| YTD Return | -0.12% | +12.68% | |
| 1Y Return | +2.45% | +21.82% | |
| 3Y Return (annualized) | +5.23% | +21.98% | |
| 5Y Return (annualized) | - | +12.89% | |
| Volatility (annualized) | 5.5% | 15.3% | |
| Max Drawdown | -5.2% | -56.5% | |
| Fund Family | Capital Group (US) | State Street Investment Management | |
| Category | Fixed Income | Equity | |
| Inception | Sep 26, 2023 | Jan 22, 1993 |
CGCB vs SPY Performance
Capital Group Core Bond ETF (CGCB) is a ETF from Capital Group (US) and State Street SPDR S&P 500 ETF Trust (SPY) is a ETF from State Street Investment Management. Over the past year CGCB returned +2.45% while SPY returned +21.82%. Year to date, CGCB is down 0.12% versus a gain of 12.68% for SPY.
Over three years, CGCB compounded at +5.23% per year against +21.98% for SPY. Across the full 3-year window we track, SPY has the edge at +8.81% annualized vs +5.23%. 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 5.5% for CGCB. 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 -5.2% for CGCB 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 0.48. They move independently enough that combining them can meaningfully diversify a portfolio.
Fees and Cost Over Time
CGCB charges 0.27% per year while SPY charges 0.09%. On a $10,000 position that is $27 vs $9 annually, a gap of $18 per year that compounds over a long holding period. On income, CGCB currently yields 4.27% against 1.01% for SPY.
Holdings Overlap
CGCB and SPY share 1 holdings out of 846 unique holdings combined, representing a 0.1% weight overlap.
Moderate overlap means holding both could provide meaningful diversification benefits.
Top Shared Holdings
| Stock | Weight in CGCB | Weight in SPY | Difference |
|---|---|---|---|
| TMUS | 0.46% | 0.12% | 0.34% |
Frequently Asked Questions
Which is cheaper, CGCB or SPY?
CGCB has an expense ratio of 0.27% while SPY charges 0.09%. SPY is the cheaper option. On a $10,000 investment, that is $18 per year of difference.
Which performed better, CGCB or SPY?
Over the past year CGCB returned +2.45% vs +21.82% for SPY, so SPY leads on 1-year performance. Over the longest common window we track (3 years), CGCB annualized +5.23% vs +8.81% for SPY. Past performance does not guarantee future results.
Which is riskier, CGCB or SPY?
SPY has been the more volatile fund at 15.3% annualized versus 5.5% for CGCB. Worst drawdown: CGCB -5.2% vs SPY -56.5%.
Should I hold both CGCB and SPY?
CGCB and SPY have a monthly-return correlation of 0.48, so combining them can provide real diversification depending on your allocation goals.
What is the holdings overlap between CGCB and SPY?
CGCB and SPY share 1 common holdings with a 0.1% weight overlap. Combined, they hold 846 unique securities.
Which pays a higher dividend, CGCB or SPY?
CGCB yields 4.27% while SPY yields 1.01%, so CGCB currently pays the higher dividend yield.
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