IBDQ vs SPY
iShares iBonds Dec 2025 Term Corporate ETF vs State Street SPDR S&P 500 ETF Trust
Quick Verdict
SPY has a lower expense ratio. SPY delivered stronger 1-year returns. SPY offers more diversification with 505 holdings.
Side-by-Side Comparison
| Metric | IBDQ | SPY | Winner |
|---|---|---|---|
| Expense Ratio | 0.10% | 0.09% | |
| AUM | $2.3B | $821.1B | |
| Dividend Yield | 3.75% | 1.01% | |
| Holdings | 21 | 505 | |
| YTD Return | +3.79% | +12.68% | |
| 1Y Return | +4.01% | +21.82% | |
| 3Y Return (annualized) | +4.57% | +21.98% | |
| 5Y Return (annualized) | +1.36% | +12.89% | |
| Volatility (annualized) | 4.1% | 15.3% | |
| Max Drawdown | -15.2% | -56.5% | |
| Fund Family | iShares by BlackRock (US) | State Street Investment Management | |
| Category | Fixed Income | Equity | |
| Inception | Mar 11, 2015 | Jan 22, 1993 |
IBDQ vs SPY Performance
iShares iBonds Dec 2025 Term Corporate ETF (IBDQ) 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 IBDQ returned +4.01% while SPY returned +21.82%. Year to date, IBDQ is up 3.79% versus a gain of 12.68% for SPY.
Over three years, IBDQ compounded at +4.57% per year against +21.98% for SPY; over five years the annualized figures are +1.36% and +12.89% respectively. Across the full 11-year window we track, SPY has the edge at +8.81% annualized vs +3.29%. Past performance does not guarantee future results.
Risk: Volatility and Drawdowns
SPY has been the more volatile fund, with annualized monthly volatility of 15.3% compared with 4.1% for IBDQ. 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 -15.2% for IBDQ 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 0.48. They move independently enough that combining them can meaningfully diversify a portfolio.
Fees and Cost Over Time
IBDQ 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, IBDQ currently yields 3.75% against 1.01% for SPY.
Holdings Overlap
IBDQ and SPY share 0 holdings out of 524 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, IBDQ or SPY?
IBDQ 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, IBDQ or SPY?
Over the past year IBDQ returned +4.01% vs +21.82% for SPY, so SPY leads on 1-year performance. Over the longest common window we track (11 years), IBDQ annualized +3.29% vs +8.81% for SPY. Past performance does not guarantee future results.
Which is riskier, IBDQ or SPY?
SPY has been the more volatile fund at 15.3% annualized versus 4.1% for IBDQ. Worst drawdown: IBDQ -15.2% vs SPY -56.5%.
Should I hold both IBDQ and SPY?
IBDQ and SPY have a monthly-return correlation of 0.48, so combining them can provide real diversification depending on your allocation goals.
What is the holdings overlap between IBDQ and SPY?
IBDQ and SPY share 0 common holdings with a 0.0% weight overlap. Combined, they hold 524 unique securities.
Which pays a higher dividend, IBDQ or SPY?
IBDQ yields 3.75% while SPY yields 1.01%, so IBDQ currently pays the higher dividend yield.
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