IAGG vs SPY
iShares Core International Aggregate Bond ETF vs State Street SPDR S&P 500 ETF Trust
Which is better, IAGG or SPY?
Long Term Mid Quality against Large Cap Blend.
IAGG has a lower expense ratio. SPY led over 1Y, 3Y, 5Y and the full window.
MarketXLS is not an investment adviser. This comparison is generated automatically from market data and is for information only. A Best mark means the better reading on that one measure, not a recommendation to buy.
Side-by-Side Comparison
| Metric | IAGG | SPY |
|---|---|---|
| Expense Ratio | 0.07%Best | 0.09% |
| AUM | $11.9B | $804.7B |
| Dividend Yield | 4.54% | 0.98% |
| Holdings | 8,021 | 505 |
| YTD Return | -0.98% | +13.82%Best |
| 1Y Return | -3.32% | +16.96%Best |
| 3Y Return (annualized) | +3.08% | +22.97%Best |
| 5Y Return (annualized) | -0.07% | +13.73%Best |
| Volatility (annualized) | 4.1%Best | 15.1% |
| Max Drawdown | -13.9%Best | -34.1% |
| $10,000 over 5 years | $9,965 | $19,027Best |
| Fund Family | iShares by BlackRock (US) | State Street Investment Management |
| Category | Fixed Income | Equity |
| Style | Long Term Mid Quality | Large Cap Blend |
| Inception | Nov 10, 2015 | Jan 22, 1993 |
Not shown on this pair: Top 10 Weight.
Volatility and max drawdown are measured over the window both funds cover: Nov 12, 2015 to Sep 21, 2026 (10.9 years).
IAGG vs SPY growth
Month-end closes. Both lines start at 0% in the first month shown, so the gap between them is the difference in growth across that window. The full view is available from the range buttons; it is not the opening view here because over the whole period one of these two funds moves so much further than the other that its line would sit flat on the axis.
IAGG vs SPY Performance
iShares Core International Aggregate Bond ETF (IAGG) is an ETF from iShares by BlackRock (US) and State Street SPDR S&P 500 ETF Trust (SPY) is an ETF from State Street Investment Management. Over the past year IAGG returned -3.32% while SPY returned +16.96%. Year to date, IAGG is down 0.98% versus a gain of 13.82% for SPY.
Over three years, IAGG compounded at +3.08% per year against +22.97% for SPY; over five years the annualized figures are -0.07% and +13.73% respectively. Across the full 11-year window we track, SPY has the edge at +13.79% annualized vs +1.93%.
Past performance does not guarantee future results.
Risk: Volatility and Drawdowns
SPY has been the more volatile fund, with annualized monthly volatility of 15.1% compared with 4.1% for IAGG. 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 -13.9% for IAGG and -34.1% for SPY. Drawdown depth is what each fund did in the worst stretch of the window measured above.
The two funds' monthly returns correlate at 0.41. They move together some of the time, and apart the rest.
Fees and Cost Over Time
IAGG charges 0.07% per year while SPY charges 0.09%. On a $10,000 position that is $7 vs $9 annually, a gap of $2 per year that compounds over a long holding period. On income, IAGG currently yields 4.54% against 0.98% for SPY.
Holdings Overlap
We hold position weights for 675 holdings in IAGG and 504 in SPY, totalling 4.5% and 99.9% of the two funds. The two books name no position in common, so there is no overlap percentage to show.
0 positions in common, counted across the 675 positions we hold weights for in IAGG and 504 in SPY, against full books of 8,021 and 505.
You are not choosing between two funds in isolation.
Whichever of IAGG and SPY you pick has to sit alongside everything else you own. Add the rest and see what the combination actually holds.
Free for up to 10 holdings. No account needed.
Frequently Asked Questions
Which is cheaper, IAGG or SPY?
IAGG has an expense ratio of 0.07% while SPY charges 0.09%. IAGG is the cheaper option, by $2 a year on a $10,000 investment.
Which performed better, IAGG or SPY?
Over the past year IAGG returned -3.32% vs +16.96% for SPY, so SPY leads on 1-year performance. Over the longest common window we track (11 years), IAGG annualized +1.93% vs +13.79% for SPY. Past performance does not guarantee future results. This is information, not a recommendation.
Which is riskier, IAGG or SPY?
SPY has been the more volatile fund at 15.1% annualized versus 4.1% for IAGG. Worst drawdown: IAGG -13.9% vs SPY -34.1%.
Should I hold both IAGG and SPY?
IAGG and SPY have a monthly-return correlation of 0.41, so their returns are far enough apart for the mix to behave differently from either one alone. This is information, not a recommendation.
Which pays a higher dividend, IAGG or SPY?
IAGG yields 4.54% while SPY yields 0.98%, so IAGG currently pays the higher dividend yield.
Is SPY better than IAGG?
IAGG has a lower expense ratio. SPY led over 1Y, 3Y, 5Y and the full window. Which one suits a particular account depends on what it is for. This is information, not a recommendation.