IBDY vs SPY
iShares iBonds Dec 2033 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 | IBDY | SPY | Winner |
|---|---|---|---|
| Expense Ratio | 0.10% | 0.09% | |
| AUM | $1.1B | $789.1B | |
| Dividend Yield | 4.87% | 1.01% | |
| Holdings | 381 | 505 | |
| YTD Return | -0.37% | +14.47% | |
| 1Y Return | +2.13% | +21.96% | |
| 3Y Return (annualized) | +5.99% | +21.70% | |
| 5Y Return (annualized) | - | +13.30% | |
| Volatility (annualized) | 6.7% | 15.3% | |
| Max Drawdown | -7.5% | -56.5% | |
| Fund Family | iShares by BlackRock (US) | State Street Investment Management | |
| Category | Fixed Income | Equity | |
| Inception | Jun 21, 2023 | Jan 22, 1993 |
IBDY vs SPY Performance
iShares iBonds Dec 2033 Term Corporate ETF (IBDY) 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 IBDY returned +2.13% while SPY returned +21.96%. Year to date, IBDY is down 0.37% versus a gain of 14.47% for SPY.
Over three years, IBDY compounded at +5.99% per year against +21.70% for SPY. Across the full 3-year window we track, SPY has the edge at +8.87% annualized vs +5.27%. 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 6.7% for IBDY. 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 -7.5% for IBDY 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
IBDY 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, IBDY currently yields 4.87% against 1.01% for SPY.
Holdings Overlap
IBDY and SPY share 1 holdings out of 819 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 IBDY | Weight in SPY | Difference |
|---|---|---|---|
| AON | 0.23% | 0.12% | 0.11% |
Frequently Asked Questions
Which is cheaper, IBDY or SPY?
IBDY 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, IBDY or SPY?
Over the past year IBDY returned +2.13% vs +21.96% for SPY, so SPY leads on 1-year performance. Over the longest common window we track (3 years), IBDY annualized +5.27% vs +8.87% for SPY. Past performance does not guarantee future results.
Which is riskier, IBDY or SPY?
SPY has been the more volatile fund at 15.3% annualized versus 6.7% for IBDY. Worst drawdown: IBDY -7.5% vs SPY -56.5%.
Should I hold both IBDY and SPY?
IBDY 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 IBDY and SPY?
IBDY and SPY share 1 common holdings with a 0.1% weight overlap. Combined, they hold 819 unique securities.
Which pays a higher dividend, IBDY or SPY?
IBDY yields 4.87% while SPY yields 1.01%, so IBDY currently pays the higher dividend yield.
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