IBHF vs SPY
iShares iBonds 2026 Term High Yield and Income 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 503 holdings.
Side-by-Side Comparison
| Metric | IBHF | SPY | Winner |
|---|---|---|---|
| Expense Ratio | 0.35% | 0.09% | |
| AUM | $815M | $789.1B | |
| Dividend Yield | 6.38% | 1.01% | |
| Holdings | 212 | 505 | |
| YTD Return | -2.43% | +14.47% | |
| 1Y Return | -0.76% | +21.96% | |
| 3Y Return (annualized) | +5.43% | +21.70% | |
| 5Y Return (annualized) | +3.15% | +13.30% | |
| Volatility (annualized) | 5.1% | 15.3% | |
| Max Drawdown | -11.2% | -56.5% | |
| Fund Family | iShares by BlackRock (US) | State Street Investment Management | |
| Category | Fixed Income | Equity | |
| Inception | Nov 10, 2020 | Jan 22, 1993 |
IBHF vs SPY Performance
iShares iBonds 2026 Term High Yield and Income ETF (IBHF) 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 IBHF returned -0.76% while SPY returned +21.96%. Year to date, IBHF is down 2.43% versus a gain of 14.47% for SPY.
Over three years, IBHF compounded at +5.43% per year against +21.70% for SPY; over five years the annualized figures are +3.15% and +13.30% respectively. Across the full 6-year window we track, SPY has the edge at +8.87% annualized vs +3.76%. 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 5.1% for IBHF. 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 -11.2% for IBHF 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 0.74. They usually move together, but the gap leaves some room for diversification.
Fees and Cost Over Time
IBHF charges 0.35% per year while SPY charges 0.09%. On a $10,000 position that is $35 vs $9 annually, a gap of $26 per year that compounds over a long holding period. On income, IBHF currently yields 6.38% against 1.01% for SPY.
Holdings Overlap
IBHF and SPY share 0 holdings out of 709 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, IBHF or SPY?
IBHF has an expense ratio of 0.35% while SPY charges 0.09%. SPY is the cheaper option. On a $10,000 investment, that is $26 per year of difference.
Which performed better, IBHF or SPY?
Over the past year IBHF returned -0.76% vs +21.96% for SPY, so SPY leads on 1-year performance. Over the longest common window we track (6 years), IBHF annualized +3.76% vs +8.87% for SPY. Past performance does not guarantee future results.
Which is riskier, IBHF or SPY?
SPY has been the more volatile fund at 15.3% annualized versus 5.1% for IBHF. Worst drawdown: IBHF -11.2% vs SPY -56.5%.
Should I hold both IBHF and SPY?
IBHF and SPY have a monthly-return correlation of 0.74, so combining them can provide real diversification depending on your allocation goals.
What is the holdings overlap between IBHF and SPY?
IBHF and SPY share 0 common holdings with a 0.0% weight overlap. Combined, they hold 709 unique securities.
Which pays a higher dividend, IBHF or SPY?
IBHF yields 6.38% while SPY yields 1.01%, so IBHF currently pays the higher dividend yield.
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