IBTM vs SPY
iShares iBonds Dec 2032 Term Treasury ETF vs State Street SPDR S&P 500 ETF Trust
Quick Verdict
IBTM has a lower expense ratio. SPY delivered stronger 1-year returns. SPY offers more diversification with 505 holdings.
Side-by-Side Comparison
| Metric | IBTM | SPY | Winner |
|---|---|---|---|
| Expense Ratio | 0.07% | 0.09% | |
| AUM | $563M | $821.1B | |
| Dividend Yield | 3.95% | 1.01% | |
| Holdings | 17 | 505 | |
| YTD Return | -0.44% | +12.93% | |
| 1Y Return | +1.90% | +20.62% | |
| 3Y Return (annualized) | +4.14% | +22.00% | |
| 5Y Return (annualized) | - | +13.33% | |
| Volatility (annualized) | 7.4% | 15.3% | |
| Max Drawdown | -13.6% | -56.5% | |
| Fund Family | iShares by BlackRock (US) | State Street Investment Management | |
| Category | Fixed Income | Equity | |
| Inception | Jul 6, 2022 | Jan 22, 1993 |
IBTM vs SPY Performance
iShares iBonds Dec 2032 Term Treasury ETF (IBTM) 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 IBTM returned +1.90% while SPY returned +20.62%. Year to date, IBTM is down 0.44% versus a gain of 12.93% for SPY.
Over three years, IBTM compounded at +4.14% per year against +22.00% for SPY. Across the full 4-year window we track, SPY has the edge at +8.82% annualized vs +1.42%. 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 7.4% for IBTM. 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 -13.6% for IBTM 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 0.53. They move independently enough that combining them can meaningfully diversify a portfolio.
Fees and Cost Over Time
IBTM 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, IBTM currently yields 3.95% against 1.01% for SPY.
Holdings Overlap
IBTM and SPY share 0 holdings out of 516 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, IBTM or SPY?
IBTM has an expense ratio of 0.07% while SPY charges 0.09%. IBTM is the cheaper option. On a $10,000 investment, that is $2 per year of difference.
Which performed better, IBTM or SPY?
Over the past year IBTM returned +1.90% vs +20.62% for SPY, so SPY leads on 1-year performance. Over the longest common window we track (4 years), IBTM annualized +1.42% vs +8.82% for SPY. Past performance does not guarantee future results.
Which is riskier, IBTM or SPY?
SPY has been the more volatile fund at 15.3% annualized versus 7.4% for IBTM. Worst drawdown: IBTM -13.6% vs SPY -56.5%.
Should I hold both IBTM and SPY?
IBTM and SPY have a monthly-return correlation of 0.53, so combining them can provide real diversification depending on your allocation goals.
What is the holdings overlap between IBTM and SPY?
IBTM and SPY share 0 common holdings with a 0.0% weight overlap. Combined, they hold 516 unique securities.
Which pays a higher dividend, IBTM or SPY?
IBTM yields 3.95% while SPY yields 1.01%, so IBTM currently pays the higher dividend yield.
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