SLQD vs SPY
iShares 0-5 Year Investment Grade Corporate Bond ETF vs State Street SPDR S&P 500 ETF Trust
Quick Verdict
SLQD has a lower expense ratio. SPY delivered stronger 1-year returns. SLQD offers more diversification with 2697 holdings.
Side-by-Side Comparison
| Metric | SLQD | SPY | Winner |
|---|---|---|---|
| Expense Ratio | 0.06% | 0.09% | |
| AUM | $2.4B | $789.1B | |
| Dividend Yield | 4.31% | 1.01% | |
| Holdings | 3,046 | 505 | |
| YTD Return | +1.13% | +14.47% | |
| 1Y Return | +3.05% | +21.96% | |
| 3Y Return (annualized) | +5.50% | +21.70% | |
| 5Y Return (annualized) | +2.63% | +13.30% | |
| Volatility (annualized) | 2.3% | 15.3% | |
| Max Drawdown | -12.7% | -56.5% | |
| Fund Family | iShares by BlackRock (US) | State Street Investment Management | |
| Category | Fixed Income | Equity | |
| Inception | Oct 15, 2013 | Jan 22, 1993 |
SLQD vs SPY Performance
iShares 0-5 Year Investment Grade Corporate Bond ETF (SLQD) 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 SLQD returned +3.05% while SPY returned +21.96%. Year to date, SLQD is up 1.13% versus a gain of 14.47% for SPY.
Over three years, SLQD compounded at +5.50% per year against +21.70% for SPY; over five years the annualized figures are +2.63% and +13.30% respectively. Across the full 13-year window we track, SPY has the edge at +8.87% annualized vs +1.37%. 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 2.3% for SLQD. 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 -12.7% for SLQD 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 0.52. They move independently enough that combining them can meaningfully diversify a portfolio.
Fees and Cost Over Time
SLQD charges 0.06% per year while SPY charges 0.09%. On a $10,000 position that is $6 vs $9 annually, a gap of $3 per year that compounds over a long holding period. On income, SLQD currently yields 4.31% against 1.01% for SPY.
Holdings Overlap
SLQD and SPY share 1 holdings out of 3199 unique holdings combined, representing a 0.0% weight overlap.
Moderate overlap means holding both could provide meaningful diversification benefits.
Top Shared Holdings
| Stock | Weight in SLQD | Weight in SPY | Difference |
|---|---|---|---|
| KDP | 0.04% | 0.07% | 0.03% |
Frequently Asked Questions
Which is cheaper, SLQD or SPY?
SLQD has an expense ratio of 0.06% while SPY charges 0.09%. SLQD is the cheaper option. On a $10,000 investment, that is $3 per year of difference.
Which performed better, SLQD or SPY?
Over the past year SLQD returned +3.05% vs +21.96% for SPY, so SPY leads on 1-year performance. Over the longest common window we track (13 years), SLQD annualized +1.37% vs +8.87% for SPY. Past performance does not guarantee future results.
Which is riskier, SLQD or SPY?
SPY has been the more volatile fund at 15.3% annualized versus 2.3% for SLQD. Worst drawdown: SLQD -12.7% vs SPY -56.5%.
Should I hold both SLQD and SPY?
SLQD and SPY have a monthly-return correlation of 0.52, so combining them can provide real diversification depending on your allocation goals.
What is the holdings overlap between SLQD and SPY?
SLQD and SPY share 1 common holdings with a 0.0% weight overlap. Combined, they hold 3199 unique securities.
Which pays a higher dividend, SLQD or SPY?
SLQD yields 4.31% while SPY yields 1.01%, so SLQD currently pays the higher dividend yield.
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