IVOL vs SPY
Quadratic Interest Rate Volatility and Inflation Hedge 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 | IVOL | SPY | Winner |
|---|---|---|---|
| Expense Ratio | 0.98% | 0.09% | |
| AUM | $288M | $821.1B | |
| Dividend Yield | 4.19% | 1.01% | |
| Holdings | 12 | 505 | |
| YTD Return | -6.22% | +14.24% | |
| 1Y Return | -7.43% | +21.71% | |
| 3Y Return (annualized) | -1.86% | +22.10% | |
| 5Y Return (annualized) | -5.58% | +13.21% | |
| Volatility (annualized) | 8.8% | 15.3% | |
| Max Drawdown | -31.2% | -56.5% | |
| Fund Family | Quadratic Capital Management LLC | State Street Investment Management | |
| Category | Fixed Income | Equity | |
| Inception | May 13, 2019 | Jan 22, 1993 |
IVOL vs SPY Performance
Quadratic Interest Rate Volatility and Inflation Hedge ETF (IVOL) is a ETF from Quadratic Capital Management LLC and State Street SPDR S&P 500 ETF Trust (SPY) is a ETF from State Street Investment Management. Over the past year IVOL returned -7.43% while SPY returned +21.71%. Year to date, IVOL is down 6.22% versus a gain of 14.24% for SPY.
Over three years, IVOL compounded at -1.86% per year against +22.10% for SPY; over five years the annualized figures are -5.58% and +13.21% respectively. Across the full 7-year window we track, SPY has the edge at +8.86% annualized vs -2.13%. 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 8.8% for IVOL. 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 -31.2% for IVOL 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 0.07. They move independently enough that combining them can meaningfully diversify a portfolio.
Fees and Cost Over Time
IVOL charges 0.98% per year while SPY charges 0.09%. On a $10,000 position that is $98 vs $9 annually, a gap of $89 per year that compounds over a long holding period. On income, IVOL currently yields 4.19% against 1.01% for SPY.
Holdings Overlap
IVOL and SPY share 0 holdings out of 505 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, IVOL or SPY?
IVOL has an expense ratio of 0.98% while SPY charges 0.09%. SPY is the cheaper option. On a $10,000 investment, that is $89 per year of difference.
Which performed better, IVOL or SPY?
Over the past year IVOL returned -7.43% vs +21.71% for SPY, so SPY leads on 1-year performance. Over the longest common window we track (7 years), IVOL annualized -2.13% vs +8.86% for SPY. Past performance does not guarantee future results.
Which is riskier, IVOL or SPY?
SPY has been the more volatile fund at 15.3% annualized versus 8.8% for IVOL. Worst drawdown: IVOL -31.2% vs SPY -56.5%.
Should I hold both IVOL and SPY?
IVOL and SPY have a monthly-return correlation of 0.07, so combining them can provide real diversification depending on your allocation goals.
What is the holdings overlap between IVOL and SPY?
IVOL and SPY share 0 common holdings with a 0.0% weight overlap. Combined, they hold 505 unique securities.
Which pays a higher dividend, IVOL or SPY?
IVOL yields 4.19% while SPY yields 1.01%, so IVOL currently pays the higher dividend yield.
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