SPIP vs SPY
State Street SPDR Portfolio TIPS ETF vs State Street SPDR S&P 500 ETF Trust
Quick Verdict
SPY has a lower expense ratio. SPY delivered stronger 1-year returns. SPY offers more diversification with 503 holdings.
Side-by-Side Comparison
| Metric | SPIP | SPY | Winner |
|---|---|---|---|
| Expense Ratio | 0.12% | 0.09% | |
| AUM | $1.0B | $789.1B | |
| Dividend Yield | 4.77% | 1.01% | |
| Holdings | 51 | 505 | |
| YTD Return | +0.01% | +14.47% | |
| 1Y Return | +0.92% | +21.96% | |
| 3Y Return (annualized) | +3.77% | +21.70% | |
| 5Y Return (annualized) | -0.01% | +13.30% | |
| Volatility (annualized) | 5.9% | 15.3% | |
| Max Drawdown | -18.7% | -56.5% | |
| Fund Family | State Street Investment Management | State Street Investment Management | |
| Category | Fixed Income | Equity | |
| Inception | May 25, 2007 | Jan 22, 1993 |
SPIP vs SPY Performance
State Street SPDR Portfolio TIPS ETF (SPIP) is a ETF from State Street Investment Management and State Street SPDR S&P 500 ETF Trust (SPY) is a ETF from State Street Investment Management. Over the past year SPIP returned +0.92% while SPY returned +21.96%. Year to date, SPIP is up 0.01% versus a gain of 14.47% for SPY.
Over three years, SPIP compounded at +3.77% per year against +21.70% for SPY; over five years the annualized figures are -0.01% and +13.30% respectively. Across the full 19-year window we track, SPY has the edge at +8.87% annualized vs +1.56%. 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 5.9% for SPIP. 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 -18.7% for SPIP 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 0.33. They move independently enough that combining them can meaningfully diversify a portfolio.
Fees and Cost Over Time
SPIP charges 0.12% per year while SPY charges 0.09%. On a $10,000 position that is $12 vs $9 annually, a gap of $3 per year that compounds over a long holding period. On income, SPIP currently yields 4.77% against 1.01% for SPY.
Holdings Overlap
SPIP and SPY share 0 holdings out of 548 unique holdings combined, representing a 0.0% weight overlap.
Moderate overlap means holding both could provide meaningful diversification benefits.
Frequently Asked Questions
Which is cheaper, SPIP or SPY?
SPIP has an expense ratio of 0.12% while SPY charges 0.09%. SPY is the cheaper option. On a $10,000 investment, that is $3 per year of difference.
Which performed better, SPIP or SPY?
Over the past year SPIP returned +0.92% vs +21.96% for SPY, so SPY leads on 1-year performance. Over the longest common window we track (19 years), SPIP annualized +1.56% vs +8.87% for SPY. Past performance does not guarantee future results.
Which is riskier, SPIP or SPY?
SPY has been the more volatile fund at 15.3% annualized versus 5.9% for SPIP. Worst drawdown: SPIP -18.7% vs SPY -56.5%.
Should I hold both SPIP and SPY?
SPIP and SPY have a monthly-return correlation of 0.33, so combining them can provide real diversification depending on your allocation goals.
What is the holdings overlap between SPIP and SPY?
SPIP and SPY share 0 common holdings with a 0.0% weight overlap. Combined, they hold 548 unique securities.
Which pays a higher dividend, SPIP or SPY?
SPIP yields 4.77% while SPY yields 1.01%, so SPIP currently pays the higher dividend yield.
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