IBGB vs SPY
iShares iBonds Dec 2045 Term Treasury ETF vs State Street SPDR S&P 500 ETF Trust
Quick Verdict
IBGB has a lower expense ratio. SPY delivered stronger 1-year returns. SPY offers more diversification with 505 holdings.
Side-by-Side Comparison
| Metric | IBGB | SPY | Winner |
|---|---|---|---|
| Expense Ratio | 0.07% | 0.09% | |
| AUM | $9M | $821.1B | |
| Dividend Yield | 4.78% | 1.01% | |
| Holdings | 9 | 505 | |
| YTD Return | -2.45% | +12.68% | |
| 1Y Return | +0.56% | +21.82% | |
| 3Y Return (annualized) | - | +21.98% | |
| 5Y Return (annualized) | - | +12.89% | |
| Volatility (annualized) | 7.5% | 15.3% | |
| Max Drawdown | -7.7% | -56.5% | |
| Fund Family | iShares by BlackRock (US) | State Street Investment Management | |
| Category | Fixed Income | Equity | |
| Inception | Mar 25, 2025 | Jan 22, 1993 |
IBGB vs SPY Performance
iShares iBonds Dec 2045 Term Treasury ETF (IBGB) 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 IBGB returned +0.56% while SPY returned +21.82%. Year to date, IBGB is down 2.45% versus a gain of 12.68% for SPY.
Risk: Volatility and Drawdowns
SPY has been the more volatile fund, with annualized monthly volatility of 15.3% compared with 7.5% for IBGB. 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 -7.7% for IBGB 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 0.17. They move independently enough that combining them can meaningfully diversify a portfolio.
Fees and Cost Over Time
IBGB charges 0.07% per year while SPY charges 0.09%. On a $10,000 position that is $7 vs $9 annually, a gap of $2 per year that compounds over a long holding period. On income, IBGB currently yields 4.78% against 1.01% for SPY.
Holdings Overlap
IBGB and SPY share 0 holdings out of 512 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, IBGB or SPY?
IBGB has an expense ratio of 0.07% while SPY charges 0.09%. IBGB is the cheaper option. On a $10,000 investment, that is $2 per year of difference.
Which performed better, IBGB or SPY?
Over the past year IBGB returned +0.56% vs +21.82% for SPY, so SPY leads on 1-year performance. Over the longest common window we track (1 years), IBGB annualized +0.94% vs +8.81% for SPY. Past performance does not guarantee future results.
Which is riskier, IBGB or SPY?
SPY has been the more volatile fund at 15.3% annualized versus 7.5% for IBGB. Worst drawdown: IBGB -7.7% vs SPY -56.5%.
Should I hold both IBGB and SPY?
IBGB and SPY have a monthly-return correlation of 0.17, so combining them can provide real diversification depending on your allocation goals.
What is the holdings overlap between IBGB and SPY?
IBGB and SPY share 0 common holdings with a 0.0% weight overlap. Combined, they hold 512 unique securities.
Which pays a higher dividend, IBGB or SPY?
IBGB yields 4.78% while SPY yields 1.01%, so IBGB currently pays the higher dividend yield.
Popular ETF Comparisons
Get Full ETF Analytics
Access complete holdings data, overlap analysis, screener tools, and more with FundXLS.