EMB vs SPY
EMB vs SPY
iShares J.P. Morgan USD Emerging Markets 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 503 holdings.
Side-by-Side Comparison
| Metric | EMB | SPY | Winner |
|---|---|---|---|
| Expense Ratio | 0.39% | 0.09% | |
| AUM | $14.7B | $789.1B | |
| Dividend Yield | 5.02% | 1.01% | |
| Holdings | 616 | 505 | |
| YTD Return | +1.50% | +13.79% | |
| 1Y Return | +6.85% | +23.66% | |
| 3Y Return (annualized) | +8.79% | +21.40% | |
| 5Y Return (annualized) | +1.75% | +13.37% | |
| Volatility (annualized) | 11.3% | 15.3% | |
| Max Drawdown | -36.4% | -56.5% | |
| Fund Family | iShares by BlackRock (US) | State Street Investment Management | |
| Category | Fixed Income | Equity | |
| Inception | Dec 17, 2007 | Jan 22, 1993 |
EMB vs SPY Performance
iShares J.P. Morgan USD Emerging Markets Bond ETF (EMB) 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 EMB returned +6.85% while SPY returned +23.66%. Year to date, EMB is up 1.50% versus a gain of 13.79% for SPY.
Over three years, EMB compounded at +8.79% per year against +21.40% for SPY; over five years the annualized figures are +1.75% and +13.37% respectively. Across the full 19-year window we track, SPY has the edge at +8.85% annualized vs +1.12%. 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 11.3% for EMB. 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 -36.4% for EMB 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 0.61. They move independently enough that combining them can meaningfully diversify a portfolio.
Fees and Cost Over Time
EMB charges 0.39% per year while SPY charges 0.09%. On a $10,000 position that is $39 vs $9 annually, a gap of $30 per year that compounds over a long holding period. On income, EMB currently yields 5.02% against 1.01% for SPY.
Holdings Overlap
EMB and SPY share 0 holdings out of 754 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, EMB or SPY?
EMB has an expense ratio of 0.39% while SPY charges 0.09%. SPY is the cheaper option. On a $10,000 investment, that is $30 per year of difference.
Which performed better, EMB or SPY?
Over the past year EMB returned +6.85% vs +23.66% for SPY, so SPY leads on 1-year performance. Over the longest common window we track (19 years), EMB annualized +1.12% vs +8.85% for SPY. Past performance does not guarantee future results.
Which is riskier, EMB or SPY?
SPY has been the more volatile fund at 15.3% annualized versus 11.3% for EMB. Worst drawdown: EMB -36.4% vs SPY -56.5%.
Should I hold both EMB and SPY?
EMB and SPY have a monthly-return correlation of 0.61, so combining them can provide real diversification depending on your allocation goals.
What is the holdings overlap between EMB and SPY?
EMB and SPY share 0 common holdings with a 0.0% weight overlap. Combined, they hold 754 unique securities.
Which pays a higher dividend, EMB or SPY?
EMB yields 5.02% while SPY yields 1.01%, so EMB currently pays the higher dividend yield.
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