IYZ vs SPY
iShares US Telecommunications ETF vs State Street SPDR S&P 500 ETF Trust
Quick Verdict
SPY has a lower expense ratio. IYZ delivered stronger 1-year returns. SPY offers more diversification with 505 holdings.
Side-by-Side Comparison
| Metric | IYZ | SPY | Winner |
|---|---|---|---|
| Expense Ratio | 0.37% | 0.09% | |
| AUM | $1.3B | $821.1B | |
| Dividend Yield | 1.74% | 1.01% | |
| Holdings | 28 | 505 | |
| YTD Return | +25.47% | +12.22% | |
| 1Y Return | +42.13% | +20.83% | |
| 3Y Return (annualized) | +27.15% | +21.70% | |
| 5Y Return (annualized) | +6.81% | +12.98% | |
| Volatility (annualized) | 19.4% | 15.3% | |
| Max Drawdown | -72.5% | -56.5% | |
| Fund Family | iShares by BlackRock (US) | State Street Investment Management | |
| Category | Equity | Equity | |
| Inception | May 22, 2000 | Jan 22, 1993 |
IYZ vs SPY Performance
iShares US Telecommunications ETF (IYZ) 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 IYZ returned +42.13% while SPY returned +20.83%. Year to date, IYZ is up 25.47% versus a gain of 12.22% for SPY.
Over three years, IYZ compounded at +27.15% per year against +21.70% for SPY; over five years the annualized figures are +6.81% and +12.98% respectively. Across the full 26-year window we track, SPY has the edge at +8.79% annualized vs +0.80%. Past performance does not guarantee future results.
Risk: Volatility and Drawdowns
IYZ has been the more volatile fund, with annualized monthly volatility of 19.4% 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 -72.5% for IYZ 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 0.75. They usually move together, but the gap leaves some room for diversification.
Fees and Cost Over Time
IYZ charges 0.37% per year while SPY charges 0.09%. On a $10,000 position that is $37 vs $9 annually, a gap of $28 per year that compounds over a long holding period. On income, IYZ currently yields 1.74% against 1.01% for SPY.
Holdings Overlap
IYZ and SPY share 11 holdings out of 518 unique holdings combined, representing a 2.1% weight overlap.
Moderate overlap means holding both could provide meaningful diversification benefits.
Frequently Asked Questions
Which is cheaper, IYZ or SPY?
IYZ has an expense ratio of 0.37% while SPY charges 0.09%. SPY is the cheaper option. On a $10,000 investment, that is $28 per year of difference.
Which performed better, IYZ or SPY?
Over the past year IYZ returned +42.13% vs +20.83% for SPY, so IYZ leads on 1-year performance. Over the longest common window we track (26 years), IYZ annualized +0.80% vs +8.79% for SPY. Past performance does not guarantee future results.
Which is riskier, IYZ or SPY?
IYZ has been the more volatile fund at 19.4% annualized versus 15.3% for SPY. Worst drawdown: IYZ -72.5% vs SPY -56.5%.
Should I hold both IYZ and SPY?
IYZ and SPY have a monthly-return correlation of 0.75, so combining them can provide real diversification depending on your allocation goals.
What is the holdings overlap between IYZ and SPY?
IYZ and SPY share 11 common holdings with a 2.1% weight overlap. Combined, they hold 518 unique securities.
Which pays a higher dividend, IYZ or SPY?
IYZ yields 1.74% while SPY yields 1.01%, so IYZ currently pays the higher dividend yield.
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