IBMT vs SPY
iShares iBonds Dec 2031 Term Muni Bond 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 | IBMT | SPY | Winner |
|---|---|---|---|
| Expense Ratio | 0.18% | 0.09% | |
| AUM | $128M | $789.1B | |
| Dividend Yield | 2.39% | 1.01% | |
| Holdings | 927 | 505 | |
| YTD Return | -1.39% | +13.39% | |
| 1Y Return | +0.91% | +22.52% | |
| 3Y Return (annualized) | - | +21.36% | |
| 5Y Return (annualized) | - | +13.19% | |
| Volatility (annualized) | 3.8% | 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 |
IBMT vs SPY Performance
iShares iBonds Dec 2031 Term Muni Bond ETF (IBMT) 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 IBMT returned +0.91% while SPY returned +22.52%. Year to date, IBMT is down 1.39% versus a gain of 13.39% for SPY.
Risk: Volatility and Drawdowns
SPY has been the more volatile fund, with annualized monthly volatility of 15.3% compared with 3.8% for IBMT. 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 IBMT 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 0.52. They move independently enough that combining them can meaningfully diversify a portfolio.
Fees and Cost Over Time
IBMT charges 0.18% per year while SPY charges 0.09%. On a $10,000 position that is $18 vs $9 annually, a gap of $9 per year that compounds over a long holding period. On income, IBMT currently yields 2.39% against 1.01% for SPY.
Holdings Overlap
IBMT and SPY share 0 holdings out of 666 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, IBMT or SPY?
IBMT has an expense ratio of 0.18% while SPY charges 0.09%. SPY is the cheaper option. On a $10,000 investment, that is $9 per year of difference.
Which performed better, IBMT or SPY?
Over the past year IBMT returned +0.91% vs +22.52% for SPY, so SPY leads on 1-year performance. Over the longest common window we track (1 years), IBMT annualized +4.05% vs +8.84% for SPY. Past performance does not guarantee future results.
Which is riskier, IBMT or SPY?
SPY has been the more volatile fund at 15.3% annualized versus 3.8% for IBMT. Worst drawdown: IBMT -3.7% vs SPY -56.5%.
Should I hold both IBMT and SPY?
IBMT and SPY have a monthly-return correlation of 0.52, so combining them can provide real diversification depending on your allocation goals.
What is the holdings overlap between IBMT and SPY?
IBMT and SPY share 0 common holdings with a 0.0% weight overlap. Combined, they hold 666 unique securities.
Which pays a higher dividend, IBMT or SPY?
IBMT yields 2.39% while SPY yields 1.01%, so IBMT currently pays the higher dividend yield.
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