IAI vs SPY
iShares US Broker-Dealers & Securities Exchanges ETF vs State Street SPDR S&P 500 ETF Trust
Which is better, IAI or SPY?
All Cap Blend against Large Cap Blend.
SPY has a lower expense ratio. IAI led over 3Y and 5Y, SPY over 1Y and the full window. SPY is less concentrated, with 38.0% of the fund in its ten largest positions against 74.7%.
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 | IAI | SPY |
|---|---|---|
| Expense Ratio | 0.37% | 0.09%Best |
| AUM | $1.4B | $804.7B |
| Dividend Yield | 1.10% | 0.98% |
| Holdings | 40 | 505 |
| YTD Return | +5.09% | +11.52%Best |
| 1Y Return | +9.44% | +17.48%Best |
| 3Y Return (annualized) | +28.10%Best | +20.62% |
| 5Y Return (annualized) | +13.87%Best | +12.73% |
| Volatility (annualized) | 22.5% | 15.2%Best |
| Max Drawdown | -75.8% | -56.5%Best |
| $10,000 over 5 years | $19,145Best | $18,205 |
| Top 10 Weight | 74.7% | 38.0%Best |
| Fund Family | iShares by BlackRock (US) | State Street Investment Management |
| Category | Equity | Equity |
| Style | All Cap Blend | Large Cap Blend |
| Inception | May 1, 2006 | Jan 22, 1993 |
Volatility and max drawdown are measured over the window both funds cover: May 5, 2006 to Sep 10, 2026 (20.4 years).
IAI 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 covers the 20.4 years both funds cover.
IAI vs SPY Performance
iShares US Broker-Dealers & Securities Exchanges ETF (IAI) 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 IAI returned +9.44% while SPY returned +17.48%. Year to date, IAI is up 5.09% versus a gain of 11.52% for SPY.
Over three years, IAI compounded at +28.10% per year against +20.62% for SPY; over five years the annualized figures are +13.87% and +12.73% respectively. Across the full 20-year window we track, SPY has the edge at +9.34% annualized vs +7.12%.
Past performance does not guarantee future results.
Risk: Volatility and Drawdowns
IAI has been the more volatile fund, with annualized monthly volatility of 22.5% compared with 15.2% 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 -75.8% for IAI and -56.5% 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 0.83. They usually move together, but the gap leaves some room for diversification.
Fees and Cost Over Time
IAI charges 0.37% per year while SPY charges 0.09%. On a $10,000 position that is $37 vs $9 annually, a gap of $28 per year that compounds over a long holding period. On income, IAI currently yields 1.10% against 0.98% for SPY.
Holdings Overlap
88.1% of IAI's money is in holdings SPY also owns. 2.1% of SPY's money is in holdings IAI also owns.
Most of IAI is already inside SPY. Owning both mostly buys the same companies twice.
15 positions in common, counted across the 36 positions we hold weights for in IAI and 504 in SPY, against full books of 40 and 505.
What only one of them owns
Measured across the 36 and 504 positions we hold weights for.
SPY holds 479 positions IAI does not, 97.4% of the fund.
Largest: NVDA 7.71%, AAPL 6.83%, MSFT 5.50%, AMZN 4.08%, GOOGL 3.33%
Top Shared Holdings
| Stock | Weight in IAI | Weight in SPY | Difference |
|---|---|---|---|
| GSGoldman Sachs Group Inc. | 18.71% | 0.47% | 18.24% |
| MSMorgan Stanley | 16.01% | 0.39% | 15.62% |
| SCHWCharles Schwab Corp. | 9.27% | 0.26% | 9.01% |
| HOODRobinhood Markets Inc - A | 5.03% | 0.11% | 4.92% |
| ICEInterContinental Hotels Group PLC Ord Gbp0.208521303 | 4.78% | 0.13% | 4.65% |
| MCOMoody'S Corp. | 4.61% | 0.11% | 4.50% |
| CMECme Group Inc. | 4.56% | 0.14% | 4.42% |
| SPGIS&p Global Inc | 4.34% | 0.19% | 4.15% |
| NDAQNasdaq Inc. | 3.82% | 0.06% | 3.76% |
| MSCIMsci Inc. Class A | 3.59% | 0.06% | 3.53% |
88.1% of IAI is already inside SPY.
You probably hold more than these two. Add the rest and see how much of the whole book is the same companies twice.
Free for up to 10 holdings. No account needed.
Frequently Asked Questions
Which is cheaper, IAI or SPY?
IAI has an expense ratio of 0.37% while SPY charges 0.09%. SPY is the cheaper option, by $28 a year on a $10,000 investment.
Which performed better, IAI or SPY?
Over the past year IAI returned +9.44% vs +17.48% for SPY, so SPY leads on 1-year performance. Over the longest common window we track (20 years), IAI annualized +7.12% vs +9.34% for SPY. Past performance does not guarantee future results. This is information, not a recommendation.
Which is riskier, IAI or SPY?
IAI has been the more volatile fund at 22.5% annualized versus 15.2% for SPY. Worst drawdown: IAI -75.8% vs SPY -56.5%.
Should I hold both IAI and SPY?
IAI and SPY have a monthly-return correlation of 0.83, so their returns are far enough apart for the mix to behave differently from either one alone. This is information, not a recommendation.
What is the holdings overlap between IAI and SPY?
88.1% of IAI's money is in holdings SPY also owns. 2.1% of SPY's is in holdings IAI also owns. They hold 15 positions in common, counted across the 36 positions we hold weights for in IAI and 504 in SPY.
Which pays a higher dividend, IAI or SPY?
IAI yields 1.10% while SPY yields 0.98%, so IAI currently pays the higher dividend yield.
Is SPY better than IAI?
SPY has a lower expense ratio. IAI led over 3Y and 5Y, SPY over 1Y and the full window. SPY is less concentrated, with 38.0% of the fund in its ten largest positions against 74.7%. Which one suits a particular account depends on what it is for. This is information, not a recommendation.