IBTP vs SPY
iShares iBonds Dec 2034 Term Treasury ETF vs State Street SPDR S&P 500 ETF Trust
Quick Verdict
IBTP has a lower expense ratio. SPY delivered stronger 1-year returns. SPY offers more diversification with 503 holdings.
Side-by-Side Comparison
| Metric | IBTP | SPY | Winner |
|---|---|---|---|
| Expense Ratio | 0.07% | 0.09% | |
| AUM | $283M | $789.1B | |
| Dividend Yield | 4.03% | 1.01% | |
| Holdings | 5 | 505 | |
| YTD Return | -1.03% | +13.79% | |
| 1Y Return | +1.17% | +23.66% | |
| 3Y Return (annualized) | - | +21.40% | |
| 5Y Return (annualized) | - | +13.37% | |
| Volatility (annualized) | 5.4% | 15.3% | |
| Max Drawdown | -6.9% | -56.5% | |
| Fund Family | iShares by BlackRock (US) | State Street Investment Management | |
| Category | Fixed Income | Equity | |
| Inception | Jun 11, 2024 | Jan 22, 1993 |
IBTP vs SPY Performance
iShares iBonds Dec 2034 Term Treasury ETF (IBTP) 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 IBTP returned +1.17% while SPY returned +23.66%. Year to date, IBTP is down 1.03% versus a gain of 13.79% for SPY.
Risk: Volatility and Drawdowns
SPY has been the more volatile fund, with annualized monthly volatility of 15.3% compared with 5.4% for IBTP. 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 -6.9% for IBTP 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 0.17. They move independently enough that combining them can meaningfully diversify a portfolio.
Fees and Cost Over Time
IBTP 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, IBTP currently yields 4.03% against 1.01% for SPY.
Holdings Overlap
IBTP and SPY share 0 holdings out of 507 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, IBTP or SPY?
IBTP has an expense ratio of 0.07% while SPY charges 0.09%. IBTP is the cheaper option. On a $10,000 investment, that is $2 per year of difference.
Which performed better, IBTP or SPY?
Over the past year IBTP returned +1.17% vs +23.66% for SPY, so SPY leads on 1-year performance. Over the longest common window we track (2 years), IBTP annualized +3.77% vs +8.85% for SPY. Past performance does not guarantee future results.
Which is riskier, IBTP or SPY?
SPY has been the more volatile fund at 15.3% annualized versus 5.4% for IBTP. Worst drawdown: IBTP -6.9% vs SPY -56.5%.
Should I hold both IBTP and SPY?
IBTP and SPY have a monthly-return correlation of 0.17, so combining them can provide real diversification depending on your allocation goals.
What is the holdings overlap between IBTP and SPY?
IBTP and SPY share 0 common holdings with a 0.0% weight overlap. Combined, they hold 507 unique securities.
Which pays a higher dividend, IBTP or SPY?
IBTP yields 4.03% while SPY yields 1.01%, so IBTP currently pays the higher dividend yield.
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