IBTJ vs SPY
iShares iBonds Dec 2029 Term Treasury ETF vs State Street SPDR S&P 500 ETF Trust
Quick Verdict
IBTJ has a lower expense ratio. SPY delivered stronger 1-year returns. SPY offers more diversification with 505 holdings.
Side-by-Side Comparison
| Metric | IBTJ | SPY | Winner |
|---|---|---|---|
| Expense Ratio | 0.07% | 0.09% | |
| AUM | $1.4B | $821.1B | |
| Dividend Yield | 3.79% | 1.01% | |
| Holdings | 36 | 505 | |
| YTD Return | +0.48% | +12.22% | |
| 1Y Return | +2.33% | +20.83% | |
| 3Y Return (annualized) | +4.59% | +21.70% | |
| 5Y Return (annualized) | -0.34% | +12.98% | |
| Volatility (annualized) | 5.5% | 15.3% | |
| Max Drawdown | -20.5% | -56.5% | |
| Fund Family | iShares by BlackRock (US) | State Street Investment Management | |
| Category | Fixed Income | Equity | |
| Inception | Feb 25, 2020 | Jan 22, 1993 |
IBTJ vs SPY Performance
iShares iBonds Dec 2029 Term Treasury ETF (IBTJ) 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 IBTJ returned +2.33% while SPY returned +20.83%. Year to date, IBTJ is up 0.48% versus a gain of 12.22% for SPY.
Over three years, IBTJ compounded at +4.59% per year against +21.70% for SPY; over five years the annualized figures are -0.34% and +12.98% respectively. Across the full 7-year window we track, SPY has the edge at +8.79% annualized vs -0.13%. 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 5.5% for IBTJ. 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 -20.5% for IBTJ 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
IBTJ 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, IBTJ currently yields 3.79% against 1.01% for SPY.
Holdings Overlap
IBTJ and SPY share 0 holdings out of 533 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, IBTJ or SPY?
IBTJ has an expense ratio of 0.07% while SPY charges 0.09%. IBTJ is the cheaper option. On a $10,000 investment, that is $2 per year of difference.
Which performed better, IBTJ or SPY?
Over the past year IBTJ returned +2.33% vs +20.83% for SPY, so SPY leads on 1-year performance. Over the longest common window we track (7 years), IBTJ annualized -0.13% vs +8.79% for SPY. Past performance does not guarantee future results.
Which is riskier, IBTJ or SPY?
SPY has been the more volatile fund at 15.3% annualized versus 5.5% for IBTJ. Worst drawdown: IBTJ -20.5% vs SPY -56.5%.
Should I hold both IBTJ and SPY?
IBTJ 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 IBTJ and SPY?
IBTJ and SPY share 0 common holdings with a 0.0% weight overlap. Combined, they hold 533 unique securities.
Which pays a higher dividend, IBTJ or SPY?
IBTJ yields 3.79% while SPY yields 1.01%, so IBTJ currently pays the higher dividend yield.
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