IGIB vs SPY
iShares 5-10 Year Investment Grade Corporate Bond ETF vs State Street SPDR S&P 500 ETF Trust
Quick Verdict
IGIB has a lower expense ratio. SPY delivered stronger 1-year returns. SPY offers more diversification with 503 holdings.
Side-by-Side Comparison
| Metric | IGIB | SPY | Winner |
|---|---|---|---|
| Expense Ratio | 0.04% | 0.09% | |
| AUM | $18.6B | $789.1B | |
| Dividend Yield | 4.80% | 1.01% | |
| Holdings | 2,986 | 505 | |
| YTD Return | -0.79% | +13.75% | |
| 1Y Return | +2.18% | +22.91% | |
| 3Y Return (annualized) | +6.15% | +21.67% | |
| 5Y Return (annualized) | +0.94% | +13.32% | |
| Volatility (annualized) | 5.7% | 15.3% | |
| Max Drawdown | -20.6% | -56.5% | |
| Fund Family | iShares by BlackRock (US) | State Street Investment Management | |
| Category | Fixed Income | Equity | |
| Inception | Jan 5, 2007 | Jan 22, 1993 |
IGIB vs SPY Performance
iShares 5-10 Year Investment Grade Corporate Bond ETF (IGIB) 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 IGIB returned +2.18% while SPY returned +22.91%. Year to date, IGIB is down 0.79% versus a gain of 13.75% for SPY.
Over three years, IGIB compounded at +6.15% per year against +21.67% for SPY; over five years the annualized figures are +0.94% and +13.32% respectively. Across the full 20-year window we track, SPY has the edge at +8.85% annualized vs +1.26%. 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 5.7% for IGIB. 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 -20.6% for IGIB 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 0.48. They move independently enough that combining them can meaningfully diversify a portfolio.
Fees and Cost Over Time
IGIB charges 0.04% per year while SPY charges 0.09%. On a $10,000 position that is $4 vs $9 annually, a gap of $5 per year that compounds over a long holding period. On income, IGIB currently yields 4.80% against 1.01% for SPY.
Holdings Overlap
IGIB and SPY share 0 holdings out of 517 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, IGIB or SPY?
IGIB has an expense ratio of 0.04% while SPY charges 0.09%. IGIB is the cheaper option. On a $10,000 investment, that is $5 per year of difference.
Which performed better, IGIB or SPY?
Over the past year IGIB returned +2.18% vs +22.91% for SPY, so SPY leads on 1-year performance. Over the longest common window we track (20 years), IGIB annualized +1.26% vs +8.85% for SPY. Past performance does not guarantee future results.
Which is riskier, IGIB or SPY?
SPY has been the more volatile fund at 15.3% annualized versus 5.7% for IGIB. Worst drawdown: IGIB -20.6% vs SPY -56.5%.
Should I hold both IGIB and SPY?
IGIB and SPY have a monthly-return correlation of 0.48, so combining them can provide real diversification depending on your allocation goals.
What is the holdings overlap between IGIB and SPY?
IGIB and SPY share 0 common holdings with a 0.0% weight overlap. Combined, they hold 517 unique securities.
Which pays a higher dividend, IGIB or SPY?
IGIB yields 4.80% while SPY yields 1.01%, so IGIB currently pays the higher dividend yield.
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