INVG vs SPY
GMO Systematic Investment Grade Credit 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 505 holdings.
Side-by-Side Comparison
| Metric | INVG | SPY | Winner |
|---|---|---|---|
| Expense Ratio | 0.25% | 0.09% | |
| AUM | $24M | $821.1B | |
| Dividend Yield | 5.30% | 1.01% | |
| Holdings | 127 | 505 | |
| YTD Return | -0.12% | +12.22% | |
| 1Y Return | +2.21% | +20.83% | |
| 3Y Return (annualized) | - | +21.70% | |
| 5Y Return (annualized) | - | +12.98% | |
| Volatility (annualized) | 3.4% | 15.3% | |
| Max Drawdown | -3.1% | -56.5% | |
| Fund Family | GMO | State Street Investment Management | |
| Category | Fixed Income | Equity | |
| Inception | Jun 3, 2025 | Jan 22, 1993 |
INVG vs SPY Performance
GMO Systematic Investment Grade Credit ETF (INVG) is a ETF from GMO and State Street SPDR S&P 500 ETF Trust (SPY) is a ETF from State Street Investment Management. Over the past year INVG returned +2.21% while SPY returned +20.83%. Year to date, INVG is down 0.12% versus a gain of 12.22% for SPY.
Risk: Volatility and Drawdowns
SPY has been the more volatile fund, with annualized monthly volatility of 15.3% compared with 3.4% for INVG. 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 -3.1% for INVG 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 0.51. They move independently enough that combining them can meaningfully diversify a portfolio.
Fees and Cost Over Time
INVG charges 0.25% per year while SPY charges 0.09%. On a $10,000 position that is $25 vs $9 annually, a gap of $16 per year that compounds over a long holding period. On income, INVG currently yields 5.30% against 1.01% for SPY.
Holdings Overlap
INVG and SPY share 0 holdings out of 617 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, INVG or SPY?
INVG has an expense ratio of 0.25% while SPY charges 0.09%. SPY is the cheaper option. On a $10,000 investment, that is $16 per year of difference.
Which performed better, INVG or SPY?
Over the past year INVG returned +2.21% vs +20.83% for SPY, so SPY leads on 1-year performance. Over the longest common window we track (1 years), INVG annualized +3.74% vs +8.79% for SPY. Past performance does not guarantee future results.
Which is riskier, INVG or SPY?
SPY has been the more volatile fund at 15.3% annualized versus 3.4% for INVG. Worst drawdown: INVG -3.1% vs SPY -56.5%.
Should I hold both INVG and SPY?
INVG and SPY have a monthly-return correlation of 0.51, so combining them can provide real diversification depending on your allocation goals.
What is the holdings overlap between INVG and SPY?
INVG and SPY share 0 common holdings with a 0.0% weight overlap. Combined, they hold 617 unique securities.
Which pays a higher dividend, INVG or SPY?
INVG yields 5.30% while SPY yields 1.01%, so INVG currently pays the higher dividend yield.
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