IBDV vs SPY

Quick Verdict

SPY has a lower expense ratio. SPY delivered stronger 1-year returns. IBDV offers more diversification with 660 holdings.

Lower Fees: SPYHigher Returns: SPYMore Diversified: IBDV

Side-by-Side Comparison

MetricIBDVSPYWinner
Expense Ratio0.10%0.09%
AUM$3.3B$789.1B
Dividend Yield4.59%1.01%
Holdings731505
YTD Return+0.05%+13.39%
1Y Return+2.44%+22.52%
3Y Return (annualized)+5.77%+21.36%
5Y Return (annualized)+0.46%+13.19%
Volatility (annualized)7.1%15.3%
Max Drawdown-22.0%-56.5%
Fund FamilyiShares by BlackRock (US)State Street Investment Management
CategoryFixed IncomeEquity
InceptionJun 23, 2020Jan 22, 1993

IBDV vs SPY Performance

iShares iBonds Dec 2030 Term Corporate ETF (IBDV) 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 IBDV returned +2.44% while SPY returned +22.52%. Year to date, IBDV is up 0.05% versus a gain of 13.39% for SPY.

Over three years, IBDV compounded at +5.77% per year against +21.36% for SPY; over five years the annualized figures are +0.46% and +13.19% respectively. Across the full 6-year window we track, SPY has the edge at +8.84% annualized vs +0.77%. 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 7.1% for IBDV. 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 -22.0% for IBDV 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 0.65. They move independently enough that combining them can meaningfully diversify a portfolio.

Fees and Cost Over Time

IBDV 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, IBDV currently yields 4.59% against 1.01% for SPY.

Holdings Overlap

0.0%overlap

IBDV and SPY share 0 holdings out of 1163 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, IBDV or SPY?

IBDV 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, IBDV or SPY?

Over the past year IBDV returned +2.44% vs +22.52% for SPY, so SPY leads on 1-year performance. Over the longest common window we track (6 years), IBDV annualized +0.77% vs +8.84% for SPY. Past performance does not guarantee future results.

Which is riskier, IBDV or SPY?

SPY has been the more volatile fund at 15.3% annualized versus 7.1% for IBDV. Worst drawdown: IBDV -22.0% vs SPY -56.5%.

Should I hold both IBDV and SPY?

IBDV and SPY have a monthly-return correlation of 0.65, so combining them can provide real diversification depending on your allocation goals.

What is the holdings overlap between IBDV and SPY?

IBDV and SPY share 0 common holdings with a 0.0% weight overlap. Combined, they hold 1163 unique securities.

Which pays a higher dividend, IBDV or SPY?

IBDV yields 4.59% while SPY yields 1.01%, so IBDV currently pays the higher dividend yield.

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