IIGD vs SPY

IIGD vs SPY

Which is better, IIGD or SPY?

Investment Grade Bond against Large Cap Blend.

SPY has a lower expense ratio. SPY led over 1Y, 3Y, 5Y and the full window.

Lower Fees: SPYHigher Returns: SPY

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

MetricIIGDSPY
Expense Ratio0.13%0.09%Best
AUM$27M$804.7B
Dividend Yield4.25%0.98%
Holdings163505
YTD Return-0.60%+10.96%Best
1Y Return+0.24%+15.52%Best
3Y Return (annualized)+4.89%+20.73%Best
5Y Return (annualized)+1.40%+12.53%Best
Volatility (annualized)3.7%Best16.9%
Max Drawdown-13.1%Best-34.1%
$10,000 over 5 years$10,720$18,044Best
Fund FamilyInvesco (US)State Street Investment Management
CategoryFixed IncomeEquity
StyleInvestment Grade BondLarge Cap Blend
InceptionJul 25, 2018Jan 22, 1993

Not shown on this pair: Top 10 Weight.

Volatility and max drawdown are measured over the window both funds cover: Sep 7, 2018 to Sep 16, 2026 (8 years).

IIGD 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.

IIGD vs SPY Performance

Invesco Investment Grade Defensive ETF (IIGD) is an ETF from Invesco (US) and State Street SPDR S&P 500 ETF Trust (SPY) is an ETF from State Street Investment Management. Over the past year IIGD returned +0.24% while SPY returned +15.52%. Year to date, IIGD is down 0.60% versus a gain of 10.96% for SPY.

Over three years, IIGD compounded at +4.89% per year against +20.73% for SPY; over five years the annualized figures are +1.40% and +12.53% respectively. Across the full 8-year window we track, SPY has the edge at +13.81% annualized vs +1.73%.

Past performance does not guarantee future results.

Risk: Volatility and Drawdowns

SPY has been the more volatile fund, with annualized monthly volatility of 16.9% compared with 3.7% for IIGD. 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 -13.1% for IIGD 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 0.50. They move together some of the time, and apart the rest.

Fees and Cost Over Time

IIGD charges 0.13% per year while SPY charges 0.09%. On a $10,000 position that is $13 vs $9 annually, a gap of $4 per year that compounds over a long holding period. On income, IIGD currently yields 4.25% against 0.98% for SPY.

Holdings Overlap

SPY already in IIGD2.3%

At least 2.3% of SPY's money is in holdings IIGD also owns.

Stated as a floor: for IIGD, our book for it covers 87.7% of that fund, so a holding it does not list is one we cannot count as shared. The real figure is this or higher.

SPY and IIGD share little of their money.

4 positions in common, counted across the 144 positions we hold weights for in IIGD and 504 in SPY, against full books of 163 and 505.

Top Shared Holdings

StockWeight in IIGDWeight in SPYDifference
LLYEli Lilly & Co.0.61%1.40%0.79%
CATCaterpillar, Inc.0.56%0.55%0.01%
GDGeneral Dynamics Corp.0.62%0.14%0.48%
SYKStryker Corp 3.375 11/250.54%0.17%0.37%

You are not choosing between two funds in isolation.

Whichever of IIGD and SPY you pick has to sit alongside everything else you own. Add the rest and see what the combination actually holds.

IIGDSPY

Free for up to 10 holdings. No account needed.

Frequently Asked Questions

Which is cheaper, IIGD or SPY?

IIGD has an expense ratio of 0.13% while SPY charges 0.09%. SPY is the cheaper option, by $4 a year on a $10,000 investment.

Which performed better, IIGD or SPY?

Over the past year IIGD returned +0.24% vs +15.52% for SPY, so SPY leads on 1-year performance. Over the longest common window we track (8 years), IIGD annualized +1.73% vs +13.81% for SPY. Past performance does not guarantee future results. This is information, not a recommendation.

Which is riskier, IIGD or SPY?

SPY has been the more volatile fund at 16.9% annualized versus 3.7% for IIGD. Worst drawdown: IIGD -13.1% vs SPY -34.1%.

Should I hold both IIGD and SPY?

IIGD and SPY have a monthly-return correlation of 0.50, so their returns are far enough apart for the mix to behave differently from either one alone. This is information, not a recommendation.

What is the holdings overlap between IIGD and SPY?

At least 2.3% of SPY's money is in holdings IIGD also owns. Our book for IIGD is partial, so the real figure is this or higher. They hold 4 positions in common, counted across the 144 positions we hold weights for in IIGD and 504 in SPY.

Which pays a higher dividend, IIGD or SPY?

IIGD yields 4.25% while SPY yields 0.98%, so IIGD currently pays the higher dividend yield.

Is SPY better than IIGD?

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.