IBHG vs SPY
iShares iBonds 2027 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 505 holdings.
Side-by-Side Comparison
| Metric | IBHG | SPY | Winner |
|---|---|---|---|
| Expense Ratio | 0.35% | 0.09% | |
| AUM | $517M | $821.1B | |
| Dividend Yield | 6.05% | 1.01% | |
| Holdings | 91 | 505 | |
| YTD Return | -1.41% | +12.68% | |
| 1Y Return | +0.09% | +21.82% | |
| 3Y Return (annualized) | +6.04% | +21.98% | |
| 5Y Return (annualized) | +2.95% | +12.89% | |
| Volatility (annualized) | 6.8% | 15.3% | |
| Max Drawdown | -13.8% | -56.5% | |
| Fund Family | iShares by BlackRock (US) | State Street Investment Management | |
| Category | Fixed Income | Equity | |
| Inception | Jul 7, 2021 | Jan 22, 1993 |
IBHG vs SPY Performance
iShares iBonds 2027 Term High Yield and Income ETF (IBHG) 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 IBHG returned +0.09% while SPY returned +21.82%. Year to date, IBHG is down 1.41% versus a gain of 12.68% for SPY.
Over three years, IBHG compounded at +6.04% per year against +21.98% for SPY; over five years the annualized figures are +2.95% and +12.89% respectively. Across the full 5-year window we track, SPY has the edge at +8.81% annualized vs +2.82%. 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 6.8% for IBHG. 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 -13.8% for IBHG 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 0.78. They usually move together, but the gap leaves some room for diversification.
Fees and Cost Over Time
IBHG 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, IBHG currently yields 6.05% against 1.01% for SPY.
Holdings Overlap
IBHG and SPY share 0 holdings out of 589 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, IBHG or SPY?
IBHG 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, IBHG or SPY?
Over the past year IBHG returned +0.09% vs +21.82% for SPY, so SPY leads on 1-year performance. Over the longest common window we track (5 years), IBHG annualized +2.82% vs +8.81% for SPY. Past performance does not guarantee future results.
Which is riskier, IBHG or SPY?
SPY has been the more volatile fund at 15.3% annualized versus 6.8% for IBHG. Worst drawdown: IBHG -13.8% vs SPY -56.5%.
Should I hold both IBHG and SPY?
IBHG and SPY have a monthly-return correlation of 0.78, so combining them can provide real diversification depending on your allocation goals.
What is the holdings overlap between IBHG and SPY?
IBHG and SPY share 0 common holdings with a 0.0% weight overlap. Combined, they hold 589 unique securities.
Which pays a higher dividend, IBHG or SPY?
IBHG yields 6.05% while SPY yields 1.01%, so IBHG currently pays the higher dividend yield.
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