IGBH vs SPY

Quick Verdict

SPY has a lower expense ratio. SPY delivered stronger 1-year returns. SPY offers more diversification with 503 holdings.

Lower Fees: SPYHigher Returns: SPYMore Diversified: SPY

Side-by-Side Comparison

MetricIGBHSPYWinner
Expense Ratio0.14%0.09%
AUM$203M$789.1B
Dividend Yield5.68%1.01%
Holdings4,130505
YTD Return+1.22%+13.39%
1Y Return+5.37%+22.52%
3Y Return (annualized)+7.39%+21.36%
5Y Return (annualized)+5.28%+13.19%
Volatility (annualized)7.5%15.3%
Max Drawdown-38.9%-56.5%
Fund FamilyiShares by BlackRock (US)State Street Investment Management
CategoryFixed IncomeEquity
InceptionJul 22, 2015Jan 22, 1993

IGBH vs SPY Performance

iShares Interest Rate Hedged Long-Term Corporate Bond ETF (IGBH) 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 IGBH returned +5.37% while SPY returned +22.52%. Year to date, IGBH is up 1.22% versus a gain of 13.39% for SPY.

Over three years, IGBH compounded at +7.39% per year against +21.36% for SPY; over five years the annualized figures are +5.28% and +13.19% respectively. Across the full 11-year window we track, SPY has the edge at +8.84% annualized vs +2.83%. 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 7.5% for IGBH. 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 -38.9% for IGBH 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 0.71. They usually move together, but the gap leaves some room for diversification.

Fees and Cost Over Time

IGBH charges 0.14% per year while SPY charges 0.09%. On a $10,000 position that is $14 vs $9 annually, a gap of $5 per year that compounds over a long holding period. On income, IGBH currently yields 5.68% against 1.01% for SPY.

Holdings Overlap

0.0%overlap

IGBH and SPY share 0 holdings out of 579 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, IGBH or SPY?

IGBH has an expense ratio of 0.14% while SPY charges 0.09%. SPY is the cheaper option. On a $10,000 investment, that is $5 per year of difference.

Which performed better, IGBH or SPY?

Over the past year IGBH returned +5.37% vs +22.52% for SPY, so SPY leads on 1-year performance. Over the longest common window we track (11 years), IGBH annualized +2.83% vs +8.84% for SPY. Past performance does not guarantee future results.

Which is riskier, IGBH or SPY?

SPY has been the more volatile fund at 15.3% annualized versus 7.5% for IGBH. Worst drawdown: IGBH -38.9% vs SPY -56.5%.

Should I hold both IGBH and SPY?

IGBH and SPY have a monthly-return correlation of 0.71, so combining them can provide real diversification depending on your allocation goals.

What is the holdings overlap between IGBH and SPY?

IGBH and SPY share 0 common holdings with a 0.0% weight overlap. Combined, they hold 579 unique securities.

Which pays a higher dividend, IGBH or SPY?

IGBH yields 5.68% while SPY yields 1.01%, so IGBH currently pays the higher dividend yield.

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