IBHL vs SPY
iShares iBonds 2032 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 | IBHL | SPY | Winner |
|---|---|---|---|
| Expense Ratio | 0.35% | 0.09% | |
| AUM | $28M | $821.1B | |
| Dividend Yield | 6.32% | 1.01% | |
| Holdings | 218 | 505 | |
| YTD Return | -1.60% | +12.22% | |
| 1Y Return | +1.32% | +20.83% | |
| 3Y Return (annualized) | - | +21.70% | |
| 5Y Return (annualized) | - | +12.98% | |
| Volatility (annualized) | 3.5% | 15.3% | |
| Max Drawdown | -3.7% | -56.5% | |
| Fund Family | iShares by BlackRock (US) | State Street Investment Management | |
| Category | Fixed Income | Equity | |
| Inception | Mar 25, 2025 | Jan 22, 1993 |
IBHL vs SPY Performance
iShares iBonds 2032 Term High Yield and Income ETF (IBHL) 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 IBHL returned +1.32% while SPY returned +20.83%. Year to date, IBHL is down 1.60% versus a gain of 12.22% for SPY.
Risk: Volatility and Drawdowns
SPY has been the more volatile fund, with annualized monthly volatility of 15.3% compared with 3.5% for IBHL. 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 -3.7% for IBHL 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 0.71. They usually move together, but the gap leaves some room for diversification.
Fees and Cost Over Time
IBHL 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, IBHL currently yields 6.32% against 1.01% for SPY.
Holdings Overlap
IBHL and SPY share 0 holdings out of 679 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, IBHL or SPY?
IBHL 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, IBHL or SPY?
Over the past year IBHL returned +1.32% vs +20.83% for SPY, so SPY leads on 1-year performance. Over the longest common window we track (1 years), IBHL annualized +4.34% vs +8.79% for SPY. Past performance does not guarantee future results.
Which is riskier, IBHL or SPY?
SPY has been the more volatile fund at 15.3% annualized versus 3.5% for IBHL. Worst drawdown: IBHL -3.7% vs SPY -56.5%.
Should I hold both IBHL and SPY?
IBHL and SPY have a monthly-return correlation of 0.71, so combining them can provide real diversification depending on your allocation goals.
What is the holdings overlap between IBHL and SPY?
IBHL and SPY share 0 common holdings with a 0.0% weight overlap. Combined, they hold 679 unique securities.
Which pays a higher dividend, IBHL or SPY?
IBHL yields 6.32% while SPY yields 1.01%, so IBHL 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.