IYY vs SPY
iShares Dow Jones US ETF vs State Street SPDR S&P 500 ETF Trust
Quick Verdict
SPY has a lower expense ratio. SPY delivered stronger 1-year returns. IYY offers more diversification with 970 holdings.
Side-by-Side Comparison
| Metric | IYY | SPY | Winner |
|---|---|---|---|
| Expense Ratio | 0.20% | 0.09% | |
| AUM | $3.1B | $821.1B | |
| Dividend Yield | 0.88% | 1.01% | |
| Holdings | 970 | 505 | |
| YTD Return | +12.76% | +12.71% | |
| 1Y Return | +20.19% | +20.53% | |
| 3Y Return (annualized) | +21.39% | +21.60% | |
| 5Y Return (annualized) | +11.93% | +12.79% | |
| Volatility (annualized) | 15.6% | 15.3% | |
| Max Drawdown | -56.3% | -56.5% | |
| Fund Family | iShares by BlackRock (US) | State Street Investment Management | |
| Category | Equity | Equity | |
| Inception | Jun 12, 2000 | Jan 22, 1993 |
IYY vs SPY Performance
iShares Dow Jones US ETF (IYY) 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 IYY returned +20.19% while SPY returned +20.53%. Year to date, IYY is up 12.76% versus a gain of 12.71% for SPY.
Over three years, IYY compounded at +21.39% per year against +21.60% for SPY; over five years the annualized figures are +11.93% and +12.79% respectively. Across the full 26-year window we track, SPY has the edge at +8.80% annualized vs +6.99%. Past performance does not guarantee future results.
Risk: Volatility and Drawdowns
IYY has been the more volatile fund, with annualized monthly volatility of 15.6% 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 -56.3% for IYY 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 0.99. They move almost in lockstep, so holding both mostly duplicates the same exposure.
Fees and Cost Over Time
IYY charges 0.20% per year while SPY charges 0.09%. On a $10,000 position that is $20 vs $9 annually, a gap of $11 per year that compounds over a long holding period. On income, IYY currently yields 0.88% against 1.01% for SPY.
Holdings Overlap
IYY and SPY share 467 holdings out of 864 unique holdings combined, representing a 88.8% weight overlap.
High overlap means holding both may not provide much additional diversification.
Frequently Asked Questions
Which is cheaper, IYY or SPY?
IYY has an expense ratio of 0.20% while SPY charges 0.09%. SPY is the cheaper option. On a $10,000 investment, that is $11 per year of difference.
Which performed better, IYY or SPY?
Over the past year IYY returned +20.19% vs +20.53% for SPY, so SPY leads on 1-year performance. Over the longest common window we track (26 years), IYY annualized +6.99% vs +8.80% for SPY. Past performance does not guarantee future results.
Which is riskier, IYY or SPY?
IYY has been the more volatile fund at 15.6% annualized versus 15.3% for SPY. Worst drawdown: IYY -56.3% vs SPY -56.5%.
Should I hold both IYY and SPY?
IYY and SPY have a monthly-return correlation of 0.99, so they move almost identically. Holding both adds little diversification - most investors pick one, usually on fees or the specific index tracked.
What is the holdings overlap between IYY and SPY?
IYY and SPY share 467 common holdings with a 88.8% weight overlap. Combined, they hold 864 unique securities.
Which pays a higher dividend, IYY or SPY?
IYY yields 0.88% while SPY yields 1.01%, so SPY currently pays the higher dividend yield.
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