IROC vs SPY
Invesco Rochester High Yield Municipal 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 | IROC | SPY | Winner |
|---|---|---|---|
| Expense Ratio | 0.39% | 0.09% | |
| AUM | $154M | $821.1B | |
| Dividend Yield | 5.20% | 1.01% | |
| Holdings | 137 | 505 | |
| YTD Return | -0.43% | +13.17% | |
| 1Y Return | +3.43% | +21.53% | |
| 3Y Return (annualized) | +4.04% | +22.06% | |
| 5Y Return (annualized) | - | +13.35% | |
| Volatility (annualized) | 4.6% | 15.3% | |
| Max Drawdown | -4.8% | -56.5% | |
| Fund Family | Invesco (US) | State Street Investment Management | |
| Category | Fixed Income | Equity | |
| Inception | Dec 9, 2022 | Jan 22, 1993 |
IROC vs SPY Performance
Invesco Rochester High Yield Municipal ETF (IROC) is a ETF from Invesco (US) and State Street SPDR S&P 500 ETF Trust (SPY) is a ETF from State Street Investment Management. Over the past year IROC returned +3.43% while SPY returned +21.53%. Year to date, IROC is down 0.43% versus a gain of 13.17% for SPY.
Over three years, IROC compounded at +4.04% per year against +22.06% for SPY. Across the full 4-year window we track, SPY has the edge at +8.82% annualized vs +3.62%. 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 4.6% for IROC. 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 -4.8% for IROC 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 0.68. They move independently enough that combining them can meaningfully diversify a portfolio.
Fees and Cost Over Time
IROC charges 0.39% per year while SPY charges 0.09%. On a $10,000 position that is $39 vs $9 annually, a gap of $30 per year that compounds over a long holding period. On income, IROC currently yields 5.20% against 1.01% for SPY.
Holdings Overlap
IROC and SPY share 0 holdings out of 551 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, IROC or SPY?
IROC has an expense ratio of 0.39% while SPY charges 0.09%. SPY is the cheaper option. On a $10,000 investment, that is $30 per year of difference.
Which performed better, IROC or SPY?
Over the past year IROC returned +3.43% vs +21.53% for SPY, so SPY leads on 1-year performance. Over the longest common window we track (4 years), IROC annualized +3.62% vs +8.82% for SPY. Past performance does not guarantee future results.
Which is riskier, IROC or SPY?
SPY has been the more volatile fund at 15.3% annualized versus 4.6% for IROC. Worst drawdown: IROC -4.8% vs SPY -56.5%.
Should I hold both IROC and SPY?
IROC and SPY have a monthly-return correlation of 0.68, so combining them can provide real diversification depending on your allocation goals.
What is the holdings overlap between IROC and SPY?
IROC and SPY share 0 common holdings with a 0.0% weight overlap. Combined, they hold 551 unique securities.
Which pays a higher dividend, IROC or SPY?
IROC yields 5.20% while SPY yields 1.01%, so IROC currently pays the higher dividend yield.
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