SPSB vs SPY
State Street SPDR Portfolio Short Term Corporate Bond ETF vs State Street SPDR S&P 500 ETF Trust
Quick Verdict
SPSB has a lower expense ratio. SPY delivered stronger 1-year returns. SPY offers more diversification with 503 holdings.
Side-by-Side Comparison
| Metric | SPSB | SPY | Winner |
|---|---|---|---|
| Expense Ratio | 0.04% | 0.09% | |
| AUM | $10.5B | $789.1B | |
| Dividend Yield | 4.39% | 1.01% | |
| Holdings | 1,553 | 505 | |
| YTD Return | +1.06% | +13.39% | |
| 1Y Return | +3.25% | +22.52% | |
| 3Y Return (annualized) | +5.26% | +21.36% | |
| 5Y Return (annualized) | +2.77% | +13.19% | |
| Volatility (annualized) | 1.8% | 15.3% | |
| Max Drawdown | -11.8% | -56.5% | |
| Fund Family | State Street Investment Management | State Street Investment Management | |
| Category | Fixed Income | Equity | |
| Inception | Dec 16, 2009 | Jan 22, 1993 |
SPSB vs SPY Performance
State Street SPDR Portfolio Short Term Corporate Bond ETF (SPSB) 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 SPSB returned +3.25% while SPY returned +22.52%. Year to date, SPSB is up 1.06% versus a gain of 13.39% for SPY.
Over three years, SPSB compounded at +5.26% per year against +21.36% for SPY; over five years the annualized figures are +2.77% and +13.19% respectively. Across the full 17-year window we track, SPY has the edge at +8.84% annualized vs +1.02%. 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 1.8% for SPSB. 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 -11.8% for SPSB 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 0.50. They move independently enough that combining them can meaningfully diversify a portfolio.
Fees and Cost Over Time
SPSB charges 0.04% per year while SPY charges 0.09%. On a $10,000 position that is $4 vs $9 annually, a gap of $5 per year that compounds over a long holding period. On income, SPSB currently yields 4.39% against 1.01% for SPY.
Holdings Overlap
SPSB and SPY share 1 holdings out of 962 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 SPSB | Weight in SPY | Difference |
|---|---|---|---|
| HUBB | 0.05% | 0.04% | 0.01% |
Frequently Asked Questions
Which is cheaper, SPSB or SPY?
SPSB has an expense ratio of 0.04% while SPY charges 0.09%. SPSB is the cheaper option. On a $10,000 investment, that is $5 per year of difference.
Which performed better, SPSB or SPY?
Over the past year SPSB returned +3.25% vs +22.52% for SPY, so SPY leads on 1-year performance. Over the longest common window we track (17 years), SPSB annualized +1.02% vs +8.84% for SPY. Past performance does not guarantee future results.
Which is riskier, SPSB or SPY?
SPY has been the more volatile fund at 15.3% annualized versus 1.8% for SPSB. Worst drawdown: SPSB -11.8% vs SPY -56.5%.
Should I hold both SPSB and SPY?
SPSB and SPY have a monthly-return correlation of 0.50, so combining them can provide real diversification depending on your allocation goals.
What is the holdings overlap between SPSB and SPY?
SPSB and SPY share 1 common holdings with a 0.0% weight overlap. Combined, they hold 962 unique securities.
Which pays a higher dividend, SPSB or SPY?
SPSB yields 4.39% while SPY yields 1.01%, so SPSB currently pays the higher dividend yield.
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