GOVZ vs SPY
iShares 25+ Year Treasury STRIPS Bond ETF vs State Street SPDR S&P 500 ETF Trust
Quick Verdict
SPY has a lower expense ratio. GOVZ delivered stronger 1-year returns. SPY offers more diversification with 505 holdings.
Side-by-Side Comparison
| Metric | GOVZ | SPY | Winner |
|---|---|---|---|
| Expense Ratio | 0.10% | 0.09% | |
| AUM | $301M | $821.1B | |
| Dividend Yield | 5.14% | 1.01% | |
| Holdings | 22 | 505 | |
| YTD Return | +261.11% | +12.68% | |
| 1Y Return | +268.08% | +21.82% | |
| 3Y Return (annualized) | +48.24% | +21.98% | |
| 5Y Return (annualized) | +11.98% | +12.89% | |
| Volatility (annualized) | 126.3% | 15.3% | |
| Max Drawdown | -59.6% | -56.5% | |
| Fund Family | iShares by BlackRock (US) | State Street Investment Management | |
| Category | Fixed Income | Equity | |
| Inception | Sep 22, 2020 | Jan 22, 1993 |
GOVZ vs SPY Performance
iShares 25+ Year Treasury STRIPS Bond ETF (GOVZ) 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 GOVZ returned +268.08% while SPY returned +21.82%. Year to date, GOVZ is up 261.11% versus a gain of 12.68% for SPY.
Over three years, GOVZ compounded at +48.24% per year against +21.98% for SPY; over five years the annualized figures are +11.98% and +12.89% respectively. Across the full 6-year window we track, SPY has the edge at +8.81% annualized vs +8.02%. Past performance does not guarantee future results.
Risk: Volatility and Drawdowns
GOVZ has been the more volatile fund, with annualized monthly volatility of 126.3% 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 -59.6% for GOVZ 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 0.19. They move independently enough that combining them can meaningfully diversify a portfolio.
Fees and Cost Over Time
GOVZ charges 0.10% per year while SPY charges 0.09%. On a $10,000 position that is $10 vs $9 annually, a gap of $1 per year that compounds over a long holding period. On income, GOVZ currently yields 5.14% against 1.01% for SPY.
Holdings Overlap
GOVZ and SPY share 0 holdings out of 522 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, GOVZ or SPY?
GOVZ has an expense ratio of 0.10% while SPY charges 0.09%. SPY is the cheaper option. On a $10,000 investment, that is $1 per year of difference.
Which performed better, GOVZ or SPY?
Over the past year GOVZ returned +268.08% vs +21.82% for SPY, so GOVZ leads on 1-year performance. Over the longest common window we track (6 years), GOVZ annualized +8.02% vs +8.81% for SPY. Past performance does not guarantee future results.
Which is riskier, GOVZ or SPY?
GOVZ has been the more volatile fund at 126.3% annualized versus 15.3% for SPY. Worst drawdown: GOVZ -59.6% vs SPY -56.5%.
Should I hold both GOVZ and SPY?
GOVZ and SPY have a monthly-return correlation of 0.19, so combining them can provide real diversification depending on your allocation goals.
What is the holdings overlap between GOVZ and SPY?
GOVZ and SPY share 0 common holdings with a 0.0% weight overlap. Combined, they hold 522 unique securities.
Which pays a higher dividend, GOVZ or SPY?
GOVZ yields 5.14% while SPY yields 1.01%, so GOVZ currently pays the higher dividend yield.
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