IBDT vs SPY
iShares iBonds Dec 2028 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. IBDT offers more diversification with 730 holdings.
Side-by-Side Comparison
| Metric | IBDT | SPY | Winner |
|---|---|---|---|
| Expense Ratio | 0.10% | 0.09% | |
| AUM | $4.1B | $821.1B | |
| Dividend Yield | 4.52% | 1.01% | |
| Holdings | 730 | 505 | |
| YTD Return | +1.50% | +12.68% | |
| 1Y Return | +3.71% | +21.82% | |
| 3Y Return (annualized) | +5.95% | +21.98% | |
| 5Y Return (annualized) | +1.12% | +12.89% | |
| Volatility (annualized) | 6.4% | 15.3% | |
| Max Drawdown | -17.8% | -56.5% | |
| Fund Family | iShares by BlackRock (US) | State Street Investment Management | |
| Category | Fixed Income | Equity | |
| Inception | Sep 18, 2018 | Jan 22, 1993 |
IBDT vs SPY Performance
iShares iBonds Dec 2028 Term Corporate ETF (IBDT) 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 IBDT returned +3.71% while SPY returned +21.82%. Year to date, IBDT is up 1.50% versus a gain of 12.68% for SPY.
Over three years, IBDT compounded at +5.95% per year against +21.98% for SPY; over five years the annualized figures are +1.12% and +12.89% respectively. Across the full 8-year window we track, SPY has the edge at +8.81% annualized vs +2.80%. 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 6.4% for IBDT. 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 -17.8% for IBDT 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 0.60. They move independently enough that combining them can meaningfully diversify a portfolio.
Fees and Cost Over Time
IBDT 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, IBDT currently yields 4.52% against 1.01% for SPY.
Holdings Overlap
IBDT and SPY share 1 holdings out of 1156 unique holdings combined, representing a 0.0% weight overlap.
Moderate overlap means holding both could provide meaningful diversification benefits.
Top Shared Holdings
| Stock | Weight in IBDT | Weight in SPY | Difference |
|---|---|---|---|
| HUBB | 0.09% | 0.04% | 0.05% |
Frequently Asked Questions
Which is cheaper, IBDT or SPY?
IBDT 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, IBDT or SPY?
Over the past year IBDT returned +3.71% vs +21.82% for SPY, so SPY leads on 1-year performance. Over the longest common window we track (8 years), IBDT annualized +2.80% vs +8.81% for SPY. Past performance does not guarantee future results.
Which is riskier, IBDT or SPY?
SPY has been the more volatile fund at 15.3% annualized versus 6.4% for IBDT. Worst drawdown: IBDT -17.8% vs SPY -56.5%.
Should I hold both IBDT and SPY?
IBDT and SPY have a monthly-return correlation of 0.60, so combining them can provide real diversification depending on your allocation goals.
What is the holdings overlap between IBDT and SPY?
IBDT and SPY share 1 common holdings with a 0.0% weight overlap. Combined, they hold 1156 unique securities.
Which pays a higher dividend, IBDT or SPY?
IBDT yields 4.52% while SPY yields 1.01%, so IBDT currently pays the higher dividend yield.
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