ITB vs SPY
iShares US Home Construction 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 | ITB | SPY | Winner |
|---|---|---|---|
| Expense Ratio | 0.38% | 0.09% | |
| AUM | $2.3B | $789.1B | |
| Dividend Yield | 0.61% | 1.01% | |
| Holdings | 48 | 505 | |
| YTD Return | +1.12% | +13.75% | |
| 1Y Return | -4.19% | +22.91% | |
| 3Y Return (annualized) | +5.15% | +21.67% | |
| 5Y Return (annualized) | +7.37% | +13.32% | |
| Volatility (annualized) | 31.1% | 15.3% | |
| Max Drawdown | -87.1% | -56.5% | |
| Fund Family | iShares by BlackRock (US) | State Street Investment Management | |
| Category | Equity | Equity | |
| Inception | May 1, 2006 | Jan 22, 1993 |
ITB vs SPY Performance
iShares US Home Construction ETF (ITB) 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 ITB returned -4.19% while SPY returned +22.91%. Year to date, ITB is up 1.12% versus a gain of 13.75% for SPY.
Over three years, ITB compounded at +5.15% per year against +21.67% for SPY; over five years the annualized figures are +7.37% and +13.32% respectively. Across the full 20-year window we track, SPY has the edge at +8.85% annualized vs +3.62%. Past performance does not guarantee future results.
Risk: Volatility and Drawdowns
ITB has been the more volatile fund, with annualized monthly volatility of 31.1% compared with 15.3% for SPY. 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 -87.1% for ITB 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 0.67. They move independently enough that combining them can meaningfully diversify a portfolio.
Fees and Cost Over Time
ITB charges 0.38% per year while SPY charges 0.09%. On a $10,000 position that is $38 vs $9 annually, a gap of $29 per year that compounds over a long holding period. On income, ITB currently yields 0.61% against 1.01% for SPY.
Holdings Overlap
ITB and SPY share 10 holdings out of 538 unique holdings combined, representing a 1.1% weight overlap.
Moderate overlap means holding both could provide meaningful diversification benefits.
Frequently Asked Questions
Which is cheaper, ITB or SPY?
ITB has an expense ratio of 0.38% while SPY charges 0.09%. SPY is the cheaper option. On a $10,000 investment, that is $29 per year of difference.
Which performed better, ITB or SPY?
Over the past year ITB returned -4.19% vs +22.91% for SPY, so SPY leads on 1-year performance. Over the longest common window we track (20 years), ITB annualized +3.62% vs +8.85% for SPY. Past performance does not guarantee future results.
Which is riskier, ITB or SPY?
ITB has been the more volatile fund at 31.1% annualized versus 15.3% for SPY. Worst drawdown: ITB -87.1% vs SPY -56.5%.
Should I hold both ITB and SPY?
ITB and SPY have a monthly-return correlation of 0.67, so combining them can provide real diversification depending on your allocation goals.
What is the holdings overlap between ITB and SPY?
ITB and SPY share 10 common holdings with a 1.1% weight overlap. Combined, they hold 538 unique securities.
Which pays a higher dividend, ITB or SPY?
ITB yields 0.61% while SPY yields 1.01%, so SPY currently pays the higher dividend yield.
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