GTO vs SPY
Invesco Total Return 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. GTO offers more diversification with 1,904 holdings.
Side-by-Side Comparison
| Metric | GTO | SPY | Winner |
|---|---|---|---|
| Expense Ratio | 0.35% | 0.09% | |
| AUM | $2.5B | $821.1B | |
| Dividend Yield | 4.90% | 1.01% | |
| Holdings | 1,904 | 505 | |
| YTD Return | +0.33% | +14.24% | |
| 1Y Return | +3.13% | +21.71% | |
| 3Y Return (annualized) | +5.15% | +22.10% | |
| 5Y Return (annualized) | -0.30% | +13.21% | |
| Volatility (annualized) | 5.7% | 15.3% | |
| Max Drawdown | -21.1% | -56.5% | |
| Fund Family | Invesco (US) | State Street Investment Management | |
| Category | Fixed Income | Equity | |
| Inception | Feb 10, 2016 | Jan 22, 1993 |
GTO vs SPY Performance
Invesco Total Return Bond ETF (GTO) is a ETF from Invesco (US) and State Street SPDR S&P 500 ETF Trust (SPY) is a ETF from State Street Investment Management. Over the past year GTO returned +3.13% while SPY returned +21.71%. Year to date, GTO is up 0.33% versus a gain of 14.24% for SPY.
Over three years, GTO compounded at +5.15% per year against +22.10% for SPY; over five years the annualized figures are -0.30% and +13.21% respectively. Across the full 11-year window we track, SPY has the edge at +8.86% annualized vs +1.27%. 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 5.7% for GTO. 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 -21.1% for GTO 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 0.58. They move independently enough that combining them can meaningfully diversify a portfolio.
Fees and Cost Over Time
GTO charges 0.35% per year while SPY charges 0.09%. On a $10,000 position that is $35 vs $9 annually, a gap of $26 per year that compounds over a long holding period. On income, GTO currently yields 4.90% against 1.01% for SPY.
Holdings Overlap
GTO and SPY share 24 holdings out of 1129 unique holdings combined, representing a 0.8% weight overlap.
Moderate overlap means holding both could provide meaningful diversification benefits.
Frequently Asked Questions
Which is cheaper, GTO or SPY?
GTO has an expense ratio of 0.35% while SPY charges 0.09%. SPY is the cheaper option. On a $10,000 investment, that is $26 per year of difference.
Which performed better, GTO or SPY?
Over the past year GTO returned +3.13% vs +21.71% for SPY, so SPY leads on 1-year performance. Over the longest common window we track (11 years), GTO annualized +1.27% vs +8.86% for SPY. Past performance does not guarantee future results.
Which is riskier, GTO or SPY?
SPY has been the more volatile fund at 15.3% annualized versus 5.7% for GTO. Worst drawdown: GTO -21.1% vs SPY -56.5%.
Should I hold both GTO and SPY?
GTO and SPY have a monthly-return correlation of 0.58, so combining them can provide real diversification depending on your allocation goals.
What is the holdings overlap between GTO and SPY?
GTO and SPY share 24 common holdings with a 0.8% weight overlap. Combined, they hold 1129 unique securities.
Which pays a higher dividend, GTO or SPY?
GTO yields 4.90% while SPY yields 1.01%, so GTO currently pays the higher dividend yield.
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