IBCA vs SPY

Quick Verdict

SPY has a lower expense ratio. SPY delivered stronger 1-year returns. SPY offers more diversification with 503 holdings.

Lower Fees: SPYHigher Returns: SPYMore Diversified: SPY

Side-by-Side Comparison

MetricIBCASPYWinner
Expense Ratio0.10%0.09%
AUM$373M$789.1B
Dividend Yield4.65%1.01%
Holdings417505
YTD Return-1.06%+13.75%
1Y Return+2.08%+22.91%
3Y Return (annualized)-+21.67%
5Y Return (annualized)-+13.32%
Volatility (annualized)3.7%15.3%
Max Drawdown-3.5%-56.5%
Fund FamilyiShares by BlackRock (US)State Street Investment Management
CategoryFixed IncomeEquity
InceptionMar 25, 2025Jan 22, 1993

IBCA vs SPY Performance

iShares iBonds Dec 2035 Term Corporate ETF (IBCA) 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 IBCA returned +2.08% while SPY returned +22.91%. Year to date, IBCA is down 1.06% versus a gain of 13.75% for SPY.

Risk: Volatility and Drawdowns

SPY has been the more volatile fund, with annualized monthly volatility of 15.3% compared with 3.7% for IBCA. 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 -3.5% for IBCA 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 0.41. They move independently enough that combining them can meaningfully diversify a portfolio.

Fees and Cost Over Time

IBCA charges 0.10% per year while SPY charges 0.09%. On a $10,000 position that is $10 vs $9 annually, a gap of $1 per year that compounds over a long holding period. On income, IBCA currently yields 4.65% against 1.01% for SPY.

Holdings Overlap

0.0%overlap

IBCA and SPY share 0 holdings out of 839 unique holdings combined, representing a 0.0% weight overlap.

Moderate overlap means holding both could provide meaningful diversification benefits.

Frequently Asked Questions

Which is cheaper, IBCA or SPY?

IBCA has an expense ratio of 0.10% while SPY charges 0.09%. SPY is the cheaper option. On a $10,000 investment, that is $1 per year of difference.

Which performed better, IBCA or SPY?

Over the past year IBCA returned +2.08% vs +22.91% for SPY, so SPY leads on 1-year performance. Over the longest common window we track (1 years), IBCA annualized +4.25% vs +8.85% for SPY. Past performance does not guarantee future results.

Which is riskier, IBCA or SPY?

SPY has been the more volatile fund at 15.3% annualized versus 3.7% for IBCA. Worst drawdown: IBCA -3.5% vs SPY -56.5%.

Should I hold both IBCA and SPY?

IBCA and SPY have a monthly-return correlation of 0.41, so combining them can provide real diversification depending on your allocation goals.

What is the holdings overlap between IBCA and SPY?

IBCA and SPY share 0 common holdings with a 0.0% weight overlap. Combined, they hold 839 unique securities.

Which pays a higher dividend, IBCA or SPY?

IBCA yields 4.65% while SPY yields 1.01%, so IBCA currently pays the higher dividend yield.

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