IBTI vs SPY
iShares iBonds Dec 2028 Term Treasury ETF vs State Street SPDR S&P 500 ETF Trust
Quick Verdict
IBTI has a lower expense ratio. SPY delivered stronger 1-year returns. SPY offers more diversification with 505 holdings.
Side-by-Side Comparison
| Metric | IBTI | SPY | Winner |
|---|---|---|---|
| Expense Ratio | 0.07% | 0.09% | |
| AUM | $2.0B | $821.1B | |
| Dividend Yield | 3.79% | 1.01% | |
| Holdings | 47 | 505 | |
| YTD Return | +0.96% | +12.22% | |
| 1Y Return | +2.81% | +20.83% | |
| 3Y Return (annualized) | +4.62% | +21.70% | |
| 5Y Return (annualized) | +0.02% | +12.98% | |
| Volatility (annualized) | 4.8% | 15.3% | |
| Max Drawdown | -18.7% | -56.5% | |
| Fund Family | iShares by BlackRock (US) | State Street Investment Management | |
| Category | Fixed Income | Equity | |
| Inception | Feb 25, 2020 | Jan 22, 1993 |
IBTI vs SPY Performance
iShares iBonds Dec 2028 Term Treasury ETF (IBTI) 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 IBTI returned +2.81% while SPY returned +20.83%. Year to date, IBTI is up 0.96% versus a gain of 12.22% for SPY.
Over three years, IBTI compounded at +4.62% per year against +21.70% for SPY; over five years the annualized figures are +0.02% and +12.98% respectively. Across the full 7-year window we track, SPY has the edge at +8.79% annualized vs +0.22%. 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 4.8% for IBTI. 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 -18.7% for IBTI 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 0.28. They move independently enough that combining them can meaningfully diversify a portfolio.
Fees and Cost Over Time
IBTI charges 0.07% per year while SPY charges 0.09%. On a $10,000 position that is $7 vs $9 annually, a gap of $2 per year that compounds over a long holding period. On income, IBTI currently yields 3.79% against 1.01% for SPY.
Holdings Overlap
IBTI and SPY share 0 holdings out of 540 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, IBTI or SPY?
IBTI has an expense ratio of 0.07% while SPY charges 0.09%. IBTI is the cheaper option. On a $10,000 investment, that is $2 per year of difference.
Which performed better, IBTI or SPY?
Over the past year IBTI returned +2.81% vs +20.83% for SPY, so SPY leads on 1-year performance. Over the longest common window we track (7 years), IBTI annualized +0.22% vs +8.79% for SPY. Past performance does not guarantee future results.
Which is riskier, IBTI or SPY?
SPY has been the more volatile fund at 15.3% annualized versus 4.8% for IBTI. Worst drawdown: IBTI -18.7% vs SPY -56.5%.
Should I hold both IBTI and SPY?
IBTI and SPY have a monthly-return correlation of 0.28, so combining them can provide real diversification depending on your allocation goals.
What is the holdings overlap between IBTI and SPY?
IBTI and SPY share 0 common holdings with a 0.0% weight overlap. Combined, they hold 540 unique securities.
Which pays a higher dividend, IBTI or SPY?
IBTI yields 3.79% while SPY yields 1.01%, so IBTI currently pays the higher dividend yield.
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