ICLO vs SPY
Invesco AAA CLO Floating Rate Note ETF vs State Street SPDR S&P 500 ETF Trust
Quick Verdict
SPY has a lower expense ratio. SPY delivered stronger 1-year returns. SPY offers more diversification with 503 holdings.
Side-by-Side Comparison
| Metric | ICLO | SPY | Winner |
|---|---|---|---|
| Expense Ratio | 0.19% | 0.09% | |
| AUM | $525M | $789.1B | |
| Dividend Yield | 5.02% | 1.01% | |
| Holdings | 343 | 505 | |
| YTD Return | +0.27% | +14.47% | |
| 1Y Return | +1.81% | +21.96% | |
| 3Y Return (annualized) | +5.20% | +21.70% | |
| 5Y Return (annualized) | - | +13.30% | |
| Volatility (annualized) | 1.3% | 15.3% | |
| Max Drawdown | -3.5% | -56.5% | |
| Fund Family | Invesco (US) | State Street Investment Management | |
| Category | Fixed Income | Equity | |
| Inception | Dec 9, 2022 | Jan 22, 1993 |
ICLO vs SPY Performance
Invesco AAA CLO Floating Rate Note ETF (ICLO) is a ETF from Invesco (US) and State Street SPDR S&P 500 ETF Trust (SPY) is a ETF from State Street Investment Management. Over the past year ICLO returned +1.81% while SPY returned +21.96%. Year to date, ICLO is up 0.27% versus a gain of 14.47% for SPY.
Over three years, ICLO compounded at +5.20% per year against +21.70% for SPY. Across the full 4-year window we track, SPY has the edge at +8.87% annualized vs +5.84%. 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 1.3% for ICLO. 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 -3.5% for ICLO 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 0.36. They move independently enough that combining them can meaningfully diversify a portfolio.
Fees and Cost Over Time
ICLO charges 0.19% per year while SPY charges 0.09%. On a $10,000 position that is $19 vs $9 annually, a gap of $10 per year that compounds over a long holding period. On income, ICLO currently yields 5.02% against 1.01% for SPY.
Holdings Overlap
ICLO and SPY share 0 holdings out of 523 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, ICLO or SPY?
ICLO has an expense ratio of 0.19% while SPY charges 0.09%. SPY is the cheaper option. On a $10,000 investment, that is $10 per year of difference.
Which performed better, ICLO or SPY?
Over the past year ICLO returned +1.81% vs +21.96% for SPY, so SPY leads on 1-year performance. Over the longest common window we track (4 years), ICLO annualized +5.84% vs +8.87% for SPY. Past performance does not guarantee future results.
Which is riskier, ICLO or SPY?
SPY has been the more volatile fund at 15.3% annualized versus 1.3% for ICLO. Worst drawdown: ICLO -3.5% vs SPY -56.5%.
Should I hold both ICLO and SPY?
ICLO and SPY have a monthly-return correlation of 0.36, so combining them can provide real diversification depending on your allocation goals.
What is the holdings overlap between ICLO and SPY?
ICLO and SPY share 0 common holdings with a 0.0% weight overlap. Combined, they hold 523 unique securities.
Which pays a higher dividend, ICLO or SPY?
ICLO yields 5.02% while SPY yields 1.01%, so ICLO currently pays the higher dividend yield.
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