OBIL vs SPY

OBIL vs SPY
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Quick Verdict

SPY has a lower expense ratio. SPY delivered stronger 1-year returns. SPY offers more diversification with 505 holdings.

Lower Fees: SPYHigher Returns: SPYMore Diversified: SPY

Side-by-Side Comparison

MetricOBILSPYWinner
Expense Ratio0.15%0.09%
AUM$307M$821.1B
Dividend Yield3.93%1.01%
Holdings2505
YTD Return+1.93%+12.68%
1Y Return+3.68%+21.82%
3Y Return (annualized)+4.50%+21.98%
5Y Return (annualized)-+12.89%
Volatility (annualized)0.7%15.3%
Max Drawdown-0.3%-56.5%
Fund FamilyUS Benchmark SeriesState Street Investment Management
CategoryFixed IncomeEquity
InceptionNov 14, 2022Jan 22, 1993

OBIL vs SPY Performance

F/m US Treasury 12 Month Bill ETF (OBIL) is a ETF from US Benchmark Series and State Street SPDR S&P 500 ETF Trust (SPY) is a ETF from State Street Investment Management. Over the past year OBIL returned +3.68% while SPY returned +21.82%. Year to date, OBIL is up 1.93% versus a gain of 12.68% for SPY.

Over three years, OBIL compounded at +4.50% per year against +21.98% for SPY. Across the full 4-year window we track, SPY has the edge at +8.81% annualized vs +4.34%. 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 0.7% for OBIL. 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 -0.3% for OBIL 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 0.15. They move independently enough that combining them can meaningfully diversify a portfolio.

Fees and Cost Over Time

OBIL charges 0.15% per year while SPY charges 0.09%. On a $10,000 position that is $15 vs $9 annually, a gap of $6 per year that compounds over a long holding period. On income, OBIL currently yields 3.93% against 1.01% for SPY.

Frequently Asked Questions

Which is cheaper, OBIL or SPY?

OBIL has an expense ratio of 0.15% while SPY charges 0.09%. SPY is the cheaper option. On a $10,000 investment, that is $6 per year of difference.

Which performed better, OBIL or SPY?

Over the past year OBIL returned +3.68% vs +21.82% for SPY, so SPY leads on 1-year performance. Over the longest common window we track (4 years), OBIL annualized +4.34% vs +8.81% for SPY. Past performance does not guarantee future results.

Which is riskier, OBIL or SPY?

SPY has been the more volatile fund at 15.3% annualized versus 0.7% for OBIL. Worst drawdown: OBIL -0.3% vs SPY -56.5%.

Should I hold both OBIL and SPY?

OBIL and SPY have a monthly-return correlation of 0.15, so combining them can provide real diversification depending on your allocation goals.

Which pays a higher dividend, OBIL or SPY?

OBIL yields 3.93% while SPY yields 1.01%, so OBIL currently pays the higher dividend yield.

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