IBND vs SPY

IBND vs SPY

Which is better, IBND or SPY?

SPY has been ahead.

SPY has a lower expense ratio. SPY led over 1Y, 3Y, 5Y and the full window.

Lower Fees: SPYHigher Returns: SPY

MarketXLS is not an investment adviser. This comparison is generated automatically from market data and is for information only. A Best mark means the better reading on that one measure, not a recommendation to buy.

Side-by-Side Comparison

MetricIBNDSPY
Expense Ratio0.50%0.09%Best
AUM$458M$804.7B
Dividend Yield2.79%0.98%
Holdings948505
YTD Return-3.11%+12.09%Best
1Y Return-3.54%+16.29%Best
3Y Return (annualized)+5.86%+21.20%Best
5Y Return (annualized)-1.37%+13.37%Best
Volatility (annualized)9.6%Best14.3%
Max Drawdown-35.6%-34.1%Best
$10,000 over 5 years$9,334$18,728Best
Fund FamilySPDR State Street Global AdvisorsState Street Investment Management
CategoryFixed IncomeEquity
Style-Large Cap Blend
InceptionMay 19, 2010Jan 22, 1993

Not shown on this pair: Top 10 Weight.

Volatility and max drawdown are measured over the window both funds cover: May 20, 2010 to Sep 18, 2026 (16.3 years).

IBND vs SPY growth

Month-end closes. Both lines start at 0% in the first month shown, so the gap between them is the difference in growth across that window. The full view is available from the range buttons; it is not the opening view here because over the whole period one of these two funds moves so much further than the other that its line would sit flat on the axis.

IBND vs SPY Performance

State Street SPDR Bloomberg International Corporate Bond ETF (IBND) is an ETF from SPDR State Street Global Advisors and State Street SPDR S&P 500 ETF Trust (SPY) is an ETF from State Street Investment Management. Over the past year IBND returned -3.54% while SPY returned +16.29%. Year to date, IBND is down 3.11% versus a gain of 12.09% for SPY.

Over three years, IBND compounded at +5.86% per year against +21.20% for SPY; over five years the annualized figures are -1.37% and +13.37% respectively. Across the full 16-year window we track, SPY has the edge at +13.25% annualized vs +0.57%.

Past performance does not guarantee future results.

Risk: Volatility and Drawdowns

SPY has been the more volatile fund, with annualized monthly volatility of 14.3% compared with 9.6% for IBND. 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 -35.6% for IBND and -34.1% for SPY. Drawdown depth is what each fund did in the worst stretch of the window measured above.

The two funds' monthly returns correlate at 0.57. They move together some of the time, and apart the rest.

Fees and Cost Over Time

IBND charges 0.50% per year while SPY charges 0.09%. On a $10,000 position that is $50 vs $9 annually, a gap of $41 per year that compounds over a long holding period. On income, IBND currently yields 2.79% against 0.98% for SPY.

Holdings Overlap

We hold position weights for 48 holdings in IBND and 504 in SPY, totalling 4.8% and 99.9% of the two funds. The two books name no position in common, so there is no overlap percentage to show.

0 positions in common, counted across the 48 positions we hold weights for in IBND and 504 in SPY, against full books of 948 and 505.

You are not choosing between two funds in isolation.

Whichever of IBND and SPY you pick has to sit alongside everything else you own. Add the rest and see what the combination actually holds.

IBNDSPY

Free for up to 10 holdings. No account needed.

Frequently Asked Questions

Which is cheaper, IBND or SPY?

IBND has an expense ratio of 0.50% while SPY charges 0.09%. SPY is the cheaper option, by $41 a year on a $10,000 investment.

Which performed better, IBND or SPY?

Over the past year IBND returned -3.54% vs +16.29% for SPY, so SPY leads on 1-year performance. Over the longest common window we track (16 years), IBND annualized +0.57% vs +13.25% for SPY. Past performance does not guarantee future results. This is information, not a recommendation.

Which is riskier, IBND or SPY?

SPY has been the more volatile fund at 14.3% annualized versus 9.6% for IBND. Worst drawdown: IBND -35.6% vs SPY -34.1%.

Should I hold both IBND and SPY?

IBND and SPY have a monthly-return correlation of 0.57, so their returns are far enough apart for the mix to behave differently from either one alone. This is information, not a recommendation.

Which pays a higher dividend, IBND or SPY?

IBND yields 2.79% while SPY yields 0.98%, so IBND currently pays the higher dividend yield.

Is SPY better than IBND?

SPY has a lower expense ratio. SPY led over 1Y, 3Y, 5Y and the full window. Which one suits a particular account depends on what it is for. This is information, not a recommendation.