IGI vs SPY
Western Asset Investment Grade Defined Opportunity Trust Inc. vs State Street SPDR S&P 500 ETF Trust
Which is better, IGI or SPY?
Long Term Mid Quality against Large Cap Blend.
SPY has a lower expense ratio. SPY led over 1Y, 3Y, 5Y and the full window.
MarketXLS is not an investment adviser. This comparison is generated automatically from market data and is for information only. A Best mark means the better reading on that one measure, not a recommendation to buy.
Side-by-Side Comparison
| Metric | IGI | SPY |
|---|---|---|
| Expense Ratio | 0.85% | 0.09%Best |
| AUM | $102M | $804.7B |
| Dividend Yield | 5.01% | 0.98% |
| Holdings | 415 | 505 |
| YTD Return | -2.89% | +12.09%Best |
| 1Y Return | -4.12% | +16.29%Best |
| 3Y Return (annualized) | +3.92% | +21.20%Best |
| 5Y Return (annualized) | -2.97% | +13.37%Best |
| Volatility (annualized) | 11.3%Best | 14.4% |
| Max Drawdown | -34.0%Best | -34.1% |
| $10,000 over 5 years | $8,601 | $18,728Best |
| Fund Family | Franklin Templeton Investments (US) | State Street Investment Management |
| Category | Fixed Income | Equity |
| Style | Long Term Mid Quality | Large Cap Blend |
| Inception | Jun 26, 2009 | Jan 22, 1993 |
Not shown on this pair: Top 10 Weight.
Volatility and max drawdown are measured over the window both funds cover: Jun 26, 2009 to Sep 18, 2026 (17.2 years).
IGI vs SPY growth
Month-end closes. Both lines start at 0% in the first month shown, so the gap between them is the difference in growth across that window. The full view is available from the range buttons; it is not the opening view here because over the whole period one of these two funds moves so much further than the other that its line would sit flat on the axis.
IGI vs SPY Performance
Western Asset Investment Grade Defined Opportunity Trust Inc. (IGI) is an ETF from Franklin Templeton Investments (US) and State Street SPDR S&P 500 ETF Trust (SPY) is an ETF from State Street Investment Management. Over the past year IGI returned -4.12% while SPY returned +16.29%. Year to date, IGI is down 2.89% versus a gain of 12.09% for SPY.
Over three years, IGI compounded at +3.92% per year against +21.20% for SPY; over five years the annualized figures are -2.97% and +13.37% respectively. Across the full 17-year window we track, SPY has the edge at +13.55% annualized vs +0.04%.
Past performance does not guarantee future results.
Risk: Volatility and Drawdowns
SPY has been the more volatile fund, with annualized monthly volatility of 14.4% compared with 11.3% for IGI. 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 -34.0% for IGI and -34.1% for SPY. Drawdown depth is what each fund did in the worst stretch of the window measured above.
The two funds' monthly returns correlate at 0.40. They move together some of the time, and apart the rest.
Fees and Cost Over Time
IGI charges 0.85% per year while SPY charges 0.09%. On a $10,000 position that is $85 vs $9 annually, a gap of $76 per year that compounds over a long holding period. On income, IGI currently yields 5.01% against 0.98% for SPY.
Holdings Overlap
At least 0.3% of SPY's money is in holdings IGI also owns.
Stated as a floor: for IGI, our book for it covers 1.5% of that fund, so a holding it does not list is one we cannot count as shared. The real figure is this or higher.
We cannot see either book well enough to say how much of this pair is duplicated.
1 positions in common, counted across the 6 positions we hold weights for in IGI and 504 in SPY, against full books of 415 and 505.
Top Shared Holdings
| Stock | Weight in IGI | Weight in SPY | Difference |
|---|---|---|---|
| CCitigroup Inc 6.250% Perp Sr:Ii | 0.53% | 0.34% | 0.19% |
You are not choosing between two funds in isolation.
Whichever of IGI and SPY you pick has to sit alongside everything else you own. Add the rest and see what the combination actually holds.
Free for up to 10 holdings. No account needed.
Frequently Asked Questions
Which is cheaper, IGI or SPY?
IGI has an expense ratio of 0.85% while SPY charges 0.09%. SPY is the cheaper option, by $76 a year on a $10,000 investment.
Which performed better, IGI or SPY?
Over the past year IGI returned -4.12% vs +16.29% for SPY, so SPY leads on 1-year performance. Over the longest common window we track (17 years), IGI annualized +0.04% vs +13.55% for SPY. Past performance does not guarantee future results. This is information, not a recommendation.
Which is riskier, IGI or SPY?
SPY has been the more volatile fund at 14.4% annualized versus 11.3% for IGI. Worst drawdown: IGI -34.0% vs SPY -34.1%.
Should I hold both IGI and SPY?
IGI and SPY have a monthly-return correlation of 0.40, so their returns are far enough apart for the mix to behave differently from either one alone. This is information, not a recommendation.
Which pays a higher dividend, IGI or SPY?
IGI yields 5.01% while SPY yields 0.98%, so IGI currently pays the higher dividend yield.
Is SPY better than IGI?
SPY has a lower expense ratio. SPY led over 1Y, 3Y, 5Y and the full window. Which one suits a particular account depends on what it is for. This is information, not a recommendation.