IBTO vs SPY
iShares iBonds Dec 2033 Term Treasury ETF vs State Street SPDR S&P 500 ETF Trust
Quick Verdict
IBTO has a lower expense ratio. SPY delivered stronger 1-year returns. SPY offers more diversification with 505 holdings.
Side-by-Side Comparison
| Metric | IBTO | SPY | Winner |
|---|---|---|---|
| Expense Ratio | 0.07% | 0.09% | |
| AUM | $465M | $821.1B | |
| Dividend Yield | 4.17% | 1.01% | |
| Holdings | 12 | 505 | |
| YTD Return | -0.65% | +12.22% | |
| 1Y Return | +1.46% | +20.83% | |
| 3Y Return (annualized) | +4.61% | +21.70% | |
| 5Y Return (annualized) | - | +12.98% | |
| Volatility (annualized) | 6.6% | 15.3% | |
| Max Drawdown | -8.4% | -56.5% | |
| Fund Family | iShares by BlackRock (US) | State Street Investment Management | |
| Category | Fixed Income | Equity | |
| Inception | Jun 27, 2023 | Jan 22, 1993 |
IBTO vs SPY Performance
iShares iBonds Dec 2033 Term Treasury ETF (IBTO) 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 IBTO returned +1.46% while SPY returned +20.83%. Year to date, IBTO is down 0.65% versus a gain of 12.22% for SPY.
Over three years, IBTO compounded at +4.61% per year against +21.70% for SPY. Across the full 3-year window we track, SPY has the edge at +8.79% annualized vs +3.26%. 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 6.6% for IBTO. 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 -8.4% for IBTO 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 0.46. They move independently enough that combining them can meaningfully diversify a portfolio.
Fees and Cost Over Time
IBTO 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, IBTO currently yields 4.17% against 1.01% for SPY.
Holdings Overlap
IBTO and SPY share 0 holdings out of 509 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, IBTO or SPY?
IBTO has an expense ratio of 0.07% while SPY charges 0.09%. IBTO is the cheaper option. On a $10,000 investment, that is $2 per year of difference.
Which performed better, IBTO or SPY?
Over the past year IBTO returned +1.46% vs +20.83% for SPY, so SPY leads on 1-year performance. Over the longest common window we track (3 years), IBTO annualized +3.26% vs +8.79% for SPY. Past performance does not guarantee future results.
Which is riskier, IBTO or SPY?
SPY has been the more volatile fund at 15.3% annualized versus 6.6% for IBTO. Worst drawdown: IBTO -8.4% vs SPY -56.5%.
Should I hold both IBTO and SPY?
IBTO and SPY have a monthly-return correlation of 0.46, so combining them can provide real diversification depending on your allocation goals.
What is the holdings overlap between IBTO and SPY?
IBTO and SPY share 0 common holdings with a 0.0% weight overlap. Combined, they hold 509 unique securities.
Which pays a higher dividend, IBTO or SPY?
IBTO yields 4.17% while SPY yields 1.01%, so IBTO currently pays the higher dividend yield.
Popular ETF Comparisons
Get Full ETF Analytics
Access complete holdings data, overlap analysis, screener tools, and more with FundXLS.