IBIL vs SPY
iShares iBonds Oct 2035 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 503 holdings.
Side-by-Side Comparison
| Metric | IBIL | SPY | Winner |
|---|---|---|---|
| Expense Ratio | 0.10% | 0.09% | |
| AUM | $37M | $789.1B | |
| Dividend Yield | 4.45% | 1.01% | |
| Holdings | 3 | 505 | |
| YTD Return | +2.74% | +14.47% | |
| 1Y Return | +4.70% | +21.96% | |
| 3Y Return (annualized) | - | +21.70% | |
| 5Y Return (annualized) | - | +13.30% | |
| Volatility (annualized) | 3.4% | 15.3% | |
| Max Drawdown | -5.3% | -56.5% | |
| Fund Family | iShares by BlackRock (US) | State Street Investment Management | |
| Category | Fixed Income | Equity | |
| Inception | Mar 25, 2025 | Jan 22, 1993 |
IBIL vs SPY Performance
iShares iBonds Oct 2035 Term TIPS ETF (IBIL) 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 IBIL returned +4.70% while SPY returned +21.96%. Year to date, IBIL is up 2.74% versus a gain of 14.47% for SPY.
Risk: Volatility and Drawdowns
SPY has been the more volatile fund, with annualized monthly volatility of 15.3% compared with 3.4% for IBIL. 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 -5.3% for IBIL 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 0.47. They move independently enough that combining them can meaningfully diversify a portfolio.
Fees and Cost Over Time
IBIL 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, IBIL currently yields 4.45% against 1.01% for SPY.
Holdings Overlap
IBIL and SPY share 0 holdings out of 505 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, IBIL or SPY?
IBIL 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, IBIL or SPY?
Over the past year IBIL returned +4.70% vs +21.96% for SPY, so SPY leads on 1-year performance. Over the longest common window we track (1 years), IBIL annualized +6.52% vs +8.87% for SPY. Past performance does not guarantee future results.
Which is riskier, IBIL or SPY?
SPY has been the more volatile fund at 15.3% annualized versus 3.4% for IBIL. Worst drawdown: IBIL -5.3% vs SPY -56.5%.
Should I hold both IBIL and SPY?
IBIL and SPY have a monthly-return correlation of 0.47, so combining them can provide real diversification depending on your allocation goals.
What is the holdings overlap between IBIL and SPY?
IBIL and SPY share 0 common holdings with a 0.0% weight overlap. Combined, they hold 505 unique securities.
Which pays a higher dividend, IBIL or SPY?
IBIL yields 4.45% while SPY yields 1.01%, so IBIL currently pays the higher dividend yield.
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