LQIG vs SPY
State Street SPDR MarketAxess Investment Grade 400 Corporate Bond ETF vs State Street SPDR S&P 500 ETF Trust
Which is better, LQIG or SPY?
Long Term High Quality against Large Cap Blend.
LQIG has a lower expense ratio. SPY led over 1Y and the full window.
MarketXLS is not an investment adviser. This comparison is generated automatically from market data and is for information only. A Best mark means the better reading on that one measure, not a recommendation to buy.
Side-by-Side Comparison
| Metric | LQIG | SPY |
|---|---|---|
| Expense Ratio | 0.07%Best | 0.09% |
| AUM | $28M | $804.7B |
| Dividend Yield | 5.07% | 0.98% |
| Holdings | 371 | 505 |
| Volatility (annualized) | 9.1%Best | 15.7% |
| Max Drawdown | -11.9%Best | -18.8% |
| $10,000 over 4 years | $11,524 | $19,885Best |
| Fund Family | State Street Investment Management | State Street Investment Management |
| Category | Fixed Income | Equity |
| Style | Long Term High Quality | Large Cap Blend |
| Inception | May 11, 2022 | Jan 22, 1993 |
Not shown on this pair: YTD Return, 1Y Return, 3Y Return (annualized), 5Y Return (annualized), Top 10 Weight.
The two price series end 129 days apart, so a return over any period would be measuring two different stretches of market. Those rows are withheld. LQIG has data through May 12, 2026 and SPY through Sep 18, 2026.
Volatility and max drawdown, and the $10,000 over 4 years row, are measured over the window both funds cover: May 12, 2022 to May 12, 2026 (4 years).
Risk: Volatility and Drawdowns
SPY has been the more volatile fund, with annualized monthly volatility of 15.7% compared with 9.1% for LQIG. 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 -11.9% for LQIG and -18.8% for SPY. Drawdown depth is what each fund did in the worst stretch of the window measured above.
The two funds' monthly returns correlate at 0.71. They usually move together, but the gap leaves some room for diversification.
Fees and Cost Over Time
LQIG charges 0.07% per year while SPY charges 0.09%. On a $10,000 position that is $7 vs $9 annually, a gap of $2 per year that compounds over a long holding period. On income, LQIG currently yields 5.07% against 0.98% for SPY.
Holdings Overlap
We hold position weights for 82 holdings in LQIG and 504 in SPY, totalling 20.6% and 99.9% of the two funds. The two books name no position in common, so there is no overlap percentage to show.
The two holdings books were reported 214 days apart, LQIG as of Jan 30, 2026 and SPY as of Sep 1, 2026, so some of the difference between them is the time between the two reports rather than the funds.
0 positions in common, counted across the 82 positions we hold weights for in LQIG and 504 in SPY, against full books of 371 and 505.
You are not choosing between two funds in isolation.
Whichever of LQIG and SPY you pick has to sit alongside everything else you own. Add the rest and see what the combination actually holds.
Free for up to 10 holdings. No account needed.
Frequently Asked Questions
Which is cheaper, LQIG or SPY?
LQIG has an expense ratio of 0.07% while SPY charges 0.09%. LQIG is the cheaper option, by $2 a year on a $10,000 investment.
Which is riskier, LQIG or SPY?
SPY has been the more volatile fund at 15.7% annualized versus 9.1% for LQIG. Worst drawdown: LQIG -11.9% vs SPY -18.8%.
Should I hold both LQIG and SPY?
LQIG and SPY have a monthly-return correlation of 0.71, so their returns are far enough apart for the mix to behave differently from either one alone. This is information, not a recommendation.
Which pays a higher dividend, LQIG or SPY?
LQIG yields 5.07% while SPY yields 0.98%, so LQIG currently pays the higher dividend yield.
Is SPY better than LQIG?
LQIG has a lower expense ratio. SPY led over 1Y and the full window. Which one suits a particular account depends on what it is for. This is information, not a recommendation.