IBBQ vs SPY
Invesco Nasdaq Biotechnology ETF vs State Street SPDR S&P 500 ETF Trust
Quick Verdict
SPY has a lower expense ratio. IBBQ delivered stronger 1-year returns. SPY offers more diversification with 505 holdings.
Side-by-Side Comparison
| Metric | IBBQ | SPY | Winner |
|---|---|---|---|
| Expense Ratio | 0.19% | 0.09% | |
| AUM | $80M | $821.1B | |
| Dividend Yield | 0.79% | 1.01% | |
| Holdings | 260 | 505 | |
| YTD Return | +19.45% | +14.24% | |
| 1Y Return | +46.81% | +21.71% | |
| 3Y Return (annualized) | +19.22% | +22.10% | |
| 5Y Return (annualized) | +6.26% | +13.21% | |
| Volatility (annualized) | 17.0% | 15.3% | |
| Max Drawdown | -37.9% | -56.5% | |
| Fund Family | Invesco (US) | State Street Investment Management | |
| Category | Equity | Equity | |
| Inception | Jun 11, 2021 | Jan 22, 1993 |
IBBQ vs SPY Performance
Invesco Nasdaq Biotechnology ETF (IBBQ) 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 IBBQ returned +46.81% while SPY returned +21.71%. Year to date, IBBQ is up 19.45% versus a gain of 14.24% for SPY.
Over three years, IBBQ compounded at +19.22% per year against +22.10% for SPY; over five years the annualized figures are +6.26% and +13.21% respectively. Across the full 5-year window we track, SPY has the edge at +8.86% annualized vs +6.48%. Past performance does not guarantee future results.
Risk: Volatility and Drawdowns
IBBQ has been the more volatile fund, with annualized monthly volatility of 17.0% 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 -37.9% for IBBQ 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 0.56. They move independently enough that combining them can meaningfully diversify a portfolio.
Fees and Cost Over Time
IBBQ charges 0.19% per year while SPY charges 0.09%. On a $10,000 position that is $19 vs $9 annually, a gap of $10 per year that compounds over a long holding period. On income, IBBQ currently yields 0.79% against 1.01% for SPY.
Holdings Overlap
IBBQ and SPY share 9 holdings out of 747 unique holdings combined, representing a 1.0% weight overlap.
Moderate overlap means holding both could provide meaningful diversification benefits.
Frequently Asked Questions
Which is cheaper, IBBQ or SPY?
IBBQ has an expense ratio of 0.19% while SPY charges 0.09%. SPY is the cheaper option. On a $10,000 investment, that is $10 per year of difference.
Which performed better, IBBQ or SPY?
Over the past year IBBQ returned +46.81% vs +21.71% for SPY, so IBBQ leads on 1-year performance. Over the longest common window we track (5 years), IBBQ annualized +6.48% vs +8.86% for SPY. Past performance does not guarantee future results.
Which is riskier, IBBQ or SPY?
IBBQ has been the more volatile fund at 17.0% annualized versus 15.3% for SPY. Worst drawdown: IBBQ -37.9% vs SPY -56.5%.
Should I hold both IBBQ and SPY?
IBBQ and SPY have a monthly-return correlation of 0.56, so combining them can provide real diversification depending on your allocation goals.
What is the holdings overlap between IBBQ and SPY?
IBBQ and SPY share 9 common holdings with a 1.0% weight overlap. Combined, they hold 747 unique securities.
Which pays a higher dividend, IBBQ or SPY?
IBBQ yields 0.79% while SPY yields 1.01%, so SPY currently pays the higher dividend yield.
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