IBDU vs SPY
iShares iBonds Dec 2029 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. IBDU offers more diversification with 565 holdings.
Side-by-Side Comparison
| Metric | IBDU | SPY | Winner |
|---|---|---|---|
| Expense Ratio | 0.10% | 0.09% | |
| AUM | $4.0B | $789.1B | |
| Dividend Yield | 4.65% | 1.01% | |
| Holdings | 675 | 505 | |
| YTD Return | +0.72% | +13.68% | |
| 1Y Return | +3.00% | +21.53% | |
| 3Y Return (annualized) | +6.00% | +21.44% | |
| 5Y Return (annualized) | +1.00% | +13.18% | |
| Volatility (annualized) | 7.3% | 15.3% | |
| Max Drawdown | -19.5% | -56.5% | |
| Fund Family | iShares by BlackRock (US) | State Street Investment Management | |
| Category | Fixed Income | Equity | |
| Inception | Sep 17, 2019 | Jan 22, 1993 |
IBDU vs SPY Performance
iShares iBonds Dec 2029 Term Corporate ETF (IBDU) 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 IBDU returned +3.00% while SPY returned +21.53%. Year to date, IBDU is up 0.72% versus a gain of 13.68% for SPY.
Over three years, IBDU compounded at +6.00% per year against +21.44% for SPY; over five years the annualized figures are +1.00% and +13.18% respectively. Across the full 7-year window we track, SPY has the edge at +8.85% annualized vs +1.87%. 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 7.3% for IBDU. 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 -19.5% for IBDU 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 0.67. They move independently enough that combining them can meaningfully diversify a portfolio.
Fees and Cost Over Time
IBDU 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, IBDU currently yields 4.65% against 1.01% for SPY.
Holdings Overlap
IBDU and SPY share 1 holdings out of 1067 unique holdings combined, representing a 0.1% weight overlap.
Moderate overlap means holding both could provide meaningful diversification benefits.
Top Shared Holdings
| Stock | Weight in IBDU | Weight in SPY | Difference |
|---|---|---|---|
| KDP | 0.18% | 0.07% | 0.11% |
Frequently Asked Questions
Which is cheaper, IBDU or SPY?
IBDU 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, IBDU or SPY?
Over the past year IBDU returned +3.00% vs +21.53% for SPY, so SPY leads on 1-year performance. Over the longest common window we track (7 years), IBDU annualized +1.87% vs +8.85% for SPY. Past performance does not guarantee future results.
Which is riskier, IBDU or SPY?
SPY has been the more volatile fund at 15.3% annualized versus 7.3% for IBDU. Worst drawdown: IBDU -19.5% vs SPY -56.5%.
Should I hold both IBDU and SPY?
IBDU and SPY have a monthly-return correlation of 0.67, so combining them can provide real diversification depending on your allocation goals.
What is the holdings overlap between IBDU and SPY?
IBDU and SPY share 1 common holdings with a 0.1% weight overlap. Combined, they hold 1067 unique securities.
Which pays a higher dividend, IBDU or SPY?
IBDU yields 4.65% while SPY yields 1.01%, so IBDU currently pays the higher dividend yield.
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