IBIE vs SPY
iShares iBonds Oct 2028 Term TIPS 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 | IBIE | SPY | Winner |
|---|---|---|---|
| Expense Ratio | 0.10% | 0.09% | |
| AUM | $160M | $821.1B | |
| Dividend Yield | 4.96% | 1.01% | |
| Holdings | 8 | 505 | |
| YTD Return | +2.15% | +12.68% | |
| 1Y Return | +3.15% | +21.82% | |
| 3Y Return (annualized) | +5.32% | +21.98% | |
| 5Y Return (annualized) | - | +12.89% | |
| Volatility (annualized) | 2.5% | 15.3% | |
| Max Drawdown | -1.7% | -56.5% | |
| Fund Family | iShares by BlackRock (US) | State Street Investment Management | |
| Category | Fixed Income | Equity | |
| Inception | Sep 13, 2023 | Jan 22, 1993 |
IBIE vs SPY Performance
iShares iBonds Oct 2028 Term TIPS ETF (IBIE) 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 IBIE returned +3.15% while SPY returned +21.82%. Year to date, IBIE is up 2.15% versus a gain of 12.68% for SPY.
Over three years, IBIE compounded at +5.32% per year against +21.98% for SPY. Across the full 3-year window we track, SPY has the edge at +8.81% annualized vs +5.32%. 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 2.5% for IBIE. 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 -1.7% for IBIE 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 0.24. They move independently enough that combining them can meaningfully diversify a portfolio.
Fees and Cost Over Time
IBIE 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, IBIE currently yields 4.96% against 1.01% for SPY.
Holdings Overlap
IBIE and SPY share 0 holdings out of 511 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, IBIE or SPY?
IBIE 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, IBIE or SPY?
Over the past year IBIE returned +3.15% vs +21.82% for SPY, so SPY leads on 1-year performance. Over the longest common window we track (3 years), IBIE annualized +5.32% vs +8.81% for SPY. Past performance does not guarantee future results.
Which is riskier, IBIE or SPY?
SPY has been the more volatile fund at 15.3% annualized versus 2.5% for IBIE. Worst drawdown: IBIE -1.7% vs SPY -56.5%.
Should I hold both IBIE and SPY?
IBIE and SPY have a monthly-return correlation of 0.24, so combining them can provide real diversification depending on your allocation goals.
What is the holdings overlap between IBIE and SPY?
IBIE and SPY share 0 common holdings with a 0.0% weight overlap. Combined, they hold 511 unique securities.
Which pays a higher dividend, IBIE or SPY?
IBIE yields 4.96% while SPY yields 1.01%, so IBIE currently pays the higher dividend yield.
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