ILS vs SPY
Brookmont Catastrophic Bond ETF vs State Street SPDR S&P 500 ETF Trust
Quick Verdict
SPY has a lower expense ratio. SPY delivered stronger 1-year returns. SPY offers more diversification with 503 holdings.
Side-by-Side Comparison
| Metric | ILS | SPY | Winner |
|---|---|---|---|
| Expense Ratio | 1.58% | 0.09% | |
| AUM | $81M | $789.1B | |
| Dividend Yield | 8.23% | 1.01% | |
| Holdings | 81 | 505 | |
| YTD Return | +4.07% | +13.75% | |
| 1Y Return | +8.14% | +22.91% | |
| 3Y Return (annualized) | - | +21.67% | |
| 5Y Return (annualized) | - | +13.32% | |
| Volatility (annualized) | 2.6% | 15.3% | |
| Max Drawdown | -1.6% | -56.5% | |
| Fund Family | ILS ETFs | State Street Investment Management | |
| Category | Fixed Income | Equity | |
| Inception | Mar 14, 2025 | Jan 22, 1993 |
ILS vs SPY Performance
Brookmont Catastrophic Bond ETF (ILS) is a ETF from ILS ETFs and State Street SPDR S&P 500 ETF Trust (SPY) is a ETF from State Street Investment Management. Over the past year ILS returned +8.14% while SPY returned +22.91%. Year to date, ILS is up 4.07% versus a gain of 13.75% for SPY.
Risk: Volatility and Drawdowns
SPY has been the more volatile fund, with annualized monthly volatility of 15.3% compared with 2.6% for ILS. 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 -1.6% for ILS 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 0.01. They move independently enough that combining them can meaningfully diversify a portfolio.
Fees and Cost Over Time
ILS charges 1.58% per year while SPY charges 0.09%. On a $10,000 position that is $158 vs $9 annually, a gap of $149 per year that compounds over a long holding period. On income, ILS currently yields 8.23% against 1.01% for SPY.
Holdings Overlap
ILS and SPY share 0 holdings out of 504 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, ILS or SPY?
ILS has an expense ratio of 1.58% while SPY charges 0.09%. SPY is the cheaper option. On a $10,000 investment, that is $149 per year of difference.
Which performed better, ILS or SPY?
Over the past year ILS returned +8.14% vs +22.91% for SPY, so SPY leads on 1-year performance. Over the longest common window we track (1 years), ILS annualized +7.24% vs +8.85% for SPY. Past performance does not guarantee future results.
Which is riskier, ILS or SPY?
SPY has been the more volatile fund at 15.3% annualized versus 2.6% for ILS. Worst drawdown: ILS -1.6% vs SPY -56.5%.
Should I hold both ILS and SPY?
ILS and SPY have a monthly-return correlation of 0.01, so combining them can provide real diversification depending on your allocation goals.
What is the holdings overlap between ILS and SPY?
ILS and SPY share 0 common holdings with a 0.0% weight overlap. Combined, they hold 504 unique securities.
Which pays a higher dividend, ILS or SPY?
ILS yields 8.23% while SPY yields 1.01%, so ILS currently pays the higher dividend yield.
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