IGSB vs SPY
iShares 1-5 Year Investment Grade Corporate Bond ETF vs State Street SPDR S&P 500 ETF Trust
Quick Verdict
IGSB has a lower expense ratio. SPY delivered stronger 1-year returns. IGSB offers more diversification with 3933 holdings.
Side-by-Side Comparison
| Metric | IGSB | SPY | Winner |
|---|---|---|---|
| Expense Ratio | 0.04% | 0.09% | |
| AUM | $22.9B | $789.1B | |
| Dividend Yield | 4.56% | 1.01% | |
| Holdings | 4,645 | 505 | |
| YTD Return | +0.66% | +13.75% | |
| 1Y Return | +2.94% | +22.91% | |
| 3Y Return (annualized) | +5.68% | +21.67% | |
| 5Y Return (annualized) | +2.50% | +13.32% | |
| Volatility (annualized) | 2.7% | 15.3% | |
| Max Drawdown | -13.4% | -56.5% | |
| Fund Family | iShares by BlackRock (US) | State Street Investment Management | |
| Category | Fixed Income | Equity | |
| Inception | Jan 5, 2007 | Jan 22, 1993 |
IGSB vs SPY Performance
iShares 1-5 Year Investment Grade Corporate Bond ETF (IGSB) 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 IGSB returned +2.94% while SPY returned +22.91%. Year to date, IGSB is up 0.66% versus a gain of 13.75% for SPY.
Over three years, IGSB compounded at +5.68% per year against +21.67% for SPY; over five years the annualized figures are +2.50% and +13.32% respectively. Across the full 20-year window we track, SPY has the edge at +8.85% annualized vs +1.13%. 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 2.7% for IGSB. 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 -13.4% for IGSB 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 0.46. They move independently enough that combining them can meaningfully diversify a portfolio.
Fees and Cost Over Time
IGSB 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, IGSB currently yields 4.56% against 1.01% for SPY.
Holdings Overlap
IGSB and SPY share 3 holdings out of 4433 unique holdings combined, representing a 0.1% weight overlap.
Moderate overlap means holding both could provide meaningful diversification benefits.
Frequently Asked Questions
Which is cheaper, IGSB or SPY?
IGSB has an expense ratio of 0.04% while SPY charges 0.09%. IGSB is the cheaper option. On a $10,000 investment, that is $5 per year of difference.
Which performed better, IGSB or SPY?
Over the past year IGSB returned +2.94% vs +22.91% for SPY, so SPY leads on 1-year performance. Over the longest common window we track (20 years), IGSB annualized +1.13% vs +8.85% for SPY. Past performance does not guarantee future results.
Which is riskier, IGSB or SPY?
SPY has been the more volatile fund at 15.3% annualized versus 2.7% for IGSB. Worst drawdown: IGSB -13.4% vs SPY -56.5%.
Should I hold both IGSB and SPY?
IGSB and SPY have a monthly-return correlation of 0.46, so combining them can provide real diversification depending on your allocation goals.
What is the holdings overlap between IGSB and SPY?
IGSB and SPY share 3 common holdings with a 0.1% weight overlap. Combined, they hold 4433 unique securities.
Which pays a higher dividend, IGSB or SPY?
IGSB yields 4.56% while SPY yields 1.01%, so IGSB currently pays the higher dividend yield.
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