IBDW vs SPY
iShares iBonds Dec 2031 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. IBDW offers more diversification with 610 holdings.
Side-by-Side Comparison
| Metric | IBDW | SPY | Winner |
|---|---|---|---|
| Expense Ratio | 0.10% | 0.09% | |
| AUM | $2.5B | $789.1B | |
| Dividend Yield | 4.78% | 1.01% | |
| Holdings | 610 | 505 | |
| YTD Return | +0.07% | +14.47% | |
| 1Y Return | +2.18% | +21.96% | |
| 3Y Return (annualized) | +6.27% | +21.70% | |
| 5Y Return (annualized) | +0.10% | +13.30% | |
| Volatility (annualized) | 8.2% | 15.3% | |
| Max Drawdown | -23.9% | -56.5% | |
| Fund Family | iShares by BlackRock (US) | State Street Investment Management | |
| Category | Fixed Income | Equity | |
| Inception | Jun 22, 2021 | Jan 22, 1993 |
IBDW vs SPY Performance
iShares iBonds Dec 2031 Term Corporate ETF (IBDW) 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 IBDW returned +2.18% while SPY returned +21.96%. Year to date, IBDW is up 0.07% versus a gain of 14.47% for SPY.
Over three years, IBDW compounded at +6.27% per year against +21.70% for SPY; over five years the annualized figures are +0.10% and +13.30% respectively. Across the full 5-year window we track, SPY has the edge at +8.87% annualized vs +0.43%. 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 8.2% for IBDW. 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 -23.9% for IBDW 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 0.69. They move independently enough that combining them can meaningfully diversify a portfolio.
Fees and Cost Over Time
IBDW 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, IBDW currently yields 4.78% against 1.01% for SPY.
Holdings Overlap
IBDW and SPY share 0 holdings out of 934 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, IBDW or SPY?
IBDW 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, IBDW or SPY?
Over the past year IBDW returned +2.18% vs +21.96% for SPY, so SPY leads on 1-year performance. Over the longest common window we track (5 years), IBDW annualized +0.43% vs +8.87% for SPY. Past performance does not guarantee future results.
Which is riskier, IBDW or SPY?
SPY has been the more volatile fund at 15.3% annualized versus 8.2% for IBDW. Worst drawdown: IBDW -23.9% vs SPY -56.5%.
Should I hold both IBDW and SPY?
IBDW and SPY have a monthly-return correlation of 0.69, so combining them can provide real diversification depending on your allocation goals.
What is the holdings overlap between IBDW and SPY?
IBDW and SPY share 0 common holdings with a 0.0% weight overlap. Combined, they hold 934 unique securities.
Which pays a higher dividend, IBDW or SPY?
IBDW yields 4.78% while SPY yields 1.01%, so IBDW currently pays the higher dividend yield.
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