IAT vs SPY
iShares US Regional Banks ETF vs State Street SPDR S&P 500 ETF Trust
Quick Verdict
SPY has a lower expense ratio. IAT delivered stronger 1-year returns. SPY offers more diversification with 503 holdings.
Side-by-Side Comparison
| Metric | IAT | SPY | Winner |
|---|---|---|---|
| Expense Ratio | 0.38% | 0.09% | |
| AUM | $666M | $789.1B | |
| Dividend Yield | 2.60% | 1.01% | |
| Holdings | 35 | 505 | |
| YTD Return | +18.05% | +13.68% | |
| 1Y Return | +31.35% | +21.53% | |
| 3Y Return (annualized) | +24.40% | +21.44% | |
| 5Y Return (annualized) | +4.94% | +13.18% | |
| Volatility (annualized) | 25.5% | 15.3% | |
| Max Drawdown | -78.8% | -56.5% | |
| Fund Family | iShares by BlackRock (US) | State Street Investment Management | |
| Category | Equity | Equity | |
| Inception | May 1, 2006 | Jan 22, 1993 |
IAT vs SPY Performance
iShares US Regional Banks ETF (IAT) 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 IAT returned +31.35% while SPY returned +21.53%. Year to date, IAT is up 18.05% versus a gain of 13.68% for SPY.
Over three years, IAT compounded at +24.40% per year against +21.44% for SPY; over five years the annualized figures are +4.94% and +13.18% respectively. Across the full 20-year window we track, SPY has the edge at +8.85% annualized vs +2.09%. Past performance does not guarantee future results.
Risk: Volatility and Drawdowns
IAT has been the more volatile fund, with annualized monthly volatility of 25.5% 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 -78.8% for IAT 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 0.66. They move independently enough that combining them can meaningfully diversify a portfolio.
Fees and Cost Over Time
IAT charges 0.38% per year while SPY charges 0.09%. On a $10,000 position that is $38 vs $9 annually, a gap of $29 per year that compounds over a long holding period. On income, IAT currently yields 2.60% against 1.01% for SPY.
Holdings Overlap
IAT and SPY share 9 holdings out of 526 unique holdings combined, representing a 0.7% weight overlap.
Moderate overlap means holding both could provide meaningful diversification benefits.
Frequently Asked Questions
Which is cheaper, IAT or SPY?
IAT has an expense ratio of 0.38% while SPY charges 0.09%. SPY is the cheaper option. On a $10,000 investment, that is $29 per year of difference.
Which performed better, IAT or SPY?
Over the past year IAT returned +31.35% vs +21.53% for SPY, so IAT leads on 1-year performance. Over the longest common window we track (20 years), IAT annualized +2.09% vs +8.85% for SPY. Past performance does not guarantee future results.
Which is riskier, IAT or SPY?
IAT has been the more volatile fund at 25.5% annualized versus 15.3% for SPY. Worst drawdown: IAT -78.8% vs SPY -56.5%.
Should I hold both IAT and SPY?
IAT and SPY have a monthly-return correlation of 0.66, so combining them can provide real diversification depending on your allocation goals.
What is the holdings overlap between IAT and SPY?
IAT and SPY share 9 common holdings with a 0.7% weight overlap. Combined, they hold 526 unique securities.
Which pays a higher dividend, IAT or SPY?
IAT yields 2.60% while SPY yields 1.01%, so IAT currently pays the higher dividend yield.
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