IBIF vs SPY

Quick Verdict

SPY has a lower expense ratio. SPY delivered stronger 1-year returns. SPY offers more diversification with 503 holdings.

Lower Fees: SPYHigher Returns: SPYMore Diversified: SPY

Side-by-Side Comparison

MetricIBIFSPYWinner
Expense Ratio0.10%0.09%
AUM$108M$789.1B
Dividend Yield3.76%1.01%
Holdings8505
YTD Return+1.76%+14.47%
1Y Return+2.51%+21.96%
3Y Return (annualized)+5.57%+21.70%
5Y Return (annualized)-+13.30%
Volatility (annualized)3.2%15.3%
Max Drawdown-2.5%-56.5%
Fund FamilyiShares by BlackRock (US)State Street Investment Management
CategoryFixed IncomeEquity
InceptionSep 13, 2023Jan 22, 1993

IBIF vs SPY Performance

iShares iBonds Oct 2029 Term TIPS ETF (IBIF) 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 IBIF returned +2.51% while SPY returned +21.96%. Year to date, IBIF is up 1.76% versus a gain of 14.47% for SPY.

Over three years, IBIF compounded at +5.57% per year against +21.70% for SPY. Across the full 3-year window we track, SPY has the edge at +8.87% annualized vs +5.57%. 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 3.2% for IBIF. 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 -2.5% for IBIF 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 0.34. They move independently enough that combining them can meaningfully diversify a portfolio.

Fees and Cost Over Time

IBIF 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, IBIF currently yields 3.76% against 1.01% for SPY.

Holdings Overlap

0.0%overlap

IBIF and SPY share 0 holdings out of 510 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, IBIF or SPY?

IBIF 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, IBIF or SPY?

Over the past year IBIF returned +2.51% vs +21.96% for SPY, so SPY leads on 1-year performance. Over the longest common window we track (3 years), IBIF annualized +5.57% vs +8.87% for SPY. Past performance does not guarantee future results.

Which is riskier, IBIF or SPY?

SPY has been the more volatile fund at 15.3% annualized versus 3.2% for IBIF. Worst drawdown: IBIF -2.5% vs SPY -56.5%.

Should I hold both IBIF and SPY?

IBIF and SPY have a monthly-return correlation of 0.34, so combining them can provide real diversification depending on your allocation goals.

What is the holdings overlap between IBIF and SPY?

IBIF and SPY share 0 common holdings with a 0.0% weight overlap. Combined, they hold 510 unique securities.

Which pays a higher dividend, IBIF or SPY?

IBIF yields 3.76% while SPY yields 1.01%, so IBIF currently pays the higher dividend yield.

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