IEO vs SPY
iShares US Oil & Gas Exploration & Production ETF vs State Street SPDR S&P 500 ETF Trust
Quick Verdict
SPY has a lower expense ratio. IEO delivered stronger 1-year returns. SPY offers more diversification with 505 holdings.
Side-by-Side Comparison
| Metric | IEO | SPY | Winner |
|---|---|---|---|
| Expense Ratio | 0.37% | 0.09% | |
| AUM | $589M | $821.1B | |
| Dividend Yield | 1.87% | 1.01% | |
| Holdings | 50 | 505 | |
| YTD Return | +44.34% | +14.24% | |
| 1Y Return | +50.57% | +21.71% | |
| 3Y Return (annualized) | +13.40% | +22.10% | |
| 5Y Return (annualized) | +25.14% | +13.21% | |
| Volatility (annualized) | 32.2% | 15.3% | |
| Max Drawdown | -80.7% | -56.5% | |
| Fund Family | iShares by BlackRock (US) | State Street Investment Management | |
| Category | Equity | Equity | |
| Inception | May 1, 2006 | Jan 22, 1993 |
IEO vs SPY Performance
iShares US Oil & Gas Exploration & Production ETF (IEO) 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 IEO returned +50.57% while SPY returned +21.71%. Year to date, IEO is up 44.34% versus a gain of 14.24% for SPY.
Over three years, IEO compounded at +13.40% per year against +22.10% for SPY; over five years the annualized figures are +25.14% and +13.21% respectively. Across the full 20-year window we track, SPY has the edge at +8.86% annualized vs +5.53%. Past performance does not guarantee future results.
Risk: Volatility and Drawdowns
IEO has been the more volatile fund, with annualized monthly volatility of 32.2% compared with 15.3% for SPY. 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 -80.7% for IEO 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 0.59. They move independently enough that combining them can meaningfully diversify a portfolio.
Fees and Cost Over Time
IEO charges 0.37% per year while SPY charges 0.09%. On a $10,000 position that is $37 vs $9 annually, a gap of $28 per year that compounds over a long holding period. On income, IEO currently yields 1.87% against 1.01% for SPY.
Holdings Overlap
IEO and SPY share 11 holdings out of 540 unique holdings combined, representing a 1.0% weight overlap.
Moderate overlap means holding both could provide meaningful diversification benefits.
Frequently Asked Questions
Which is cheaper, IEO or SPY?
IEO has an expense ratio of 0.37% while SPY charges 0.09%. SPY is the cheaper option. On a $10,000 investment, that is $28 per year of difference.
Which performed better, IEO or SPY?
Over the past year IEO returned +50.57% vs +21.71% for SPY, so IEO leads on 1-year performance. Over the longest common window we track (20 years), IEO annualized +5.53% vs +8.86% for SPY. Past performance does not guarantee future results.
Which is riskier, IEO or SPY?
IEO has been the more volatile fund at 32.2% annualized versus 15.3% for SPY. Worst drawdown: IEO -80.7% vs SPY -56.5%.
Should I hold both IEO and SPY?
IEO and SPY have a monthly-return correlation of 0.59, so combining them can provide real diversification depending on your allocation goals.
What is the holdings overlap between IEO and SPY?
IEO and SPY share 11 common holdings with a 1.0% weight overlap. Combined, they hold 540 unique securities.
Which pays a higher dividend, IEO or SPY?
IEO yields 1.87% while SPY yields 1.01%, so IEO currently pays the higher dividend yield.
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