SPY vs STIP
State Street SPDR S&P 500 ETF Trust vs iShares 0-5 Year TIPS Bond ETF
Quick Verdict
STIP has a lower expense ratio. SPY delivered stronger 1-year returns. SPY offers more diversification with 503 holdings.
Side-by-Side Comparison
| Metric | SPY | STIP | Winner |
|---|---|---|---|
| Expense Ratio | 0.09% | 0.03% | |
| AUM | $789.1B | $15.9B | |
| Dividend Yield | 1.01% | 4.32% | |
| Holdings | 505 | 27 | |
| YTD Return | +13.68% | +1.12% | |
| 1Y Return | +21.53% | +2.23% | |
| 3Y Return (annualized) | +21.44% | +4.88% | |
| 5Y Return (annualized) | +13.18% | +2.98% | |
| Volatility (annualized) | 15.3% | 2.2% | |
| Max Drawdown | -56.5% | -6.9% | |
| Fund Family | State Street Investment Management | iShares by BlackRock (US) | |
| Category | Equity | Fixed Income | |
| Inception | Jan 22, 1993 | Dec 1, 2010 |
SPY vs STIP Performance
State Street SPDR S&P 500 ETF Trust (SPY) is a ETF from State Street Investment Management and iShares 0-5 Year TIPS Bond ETF (STIP) is a ETF from iShares by BlackRock (US). Over the past year SPY returned +21.53% while STIP returned +2.23%. Year to date, SPY is up 13.68% versus a gain of 1.12% for STIP.
Over three years, SPY compounded at +21.44% per year against +4.88% for STIP; over five years the annualized figures are +13.18% and +2.98% respectively. Across the full 16-year window we track, SPY has the edge at +8.85% annualized vs +1.51%. 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 2.2% for STIP. 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 -56.5% for SPY and -6.9% for STIP. 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 0.48. They move independently enough that combining them can meaningfully diversify a portfolio.
Fees and Cost Over Time
SPY charges 0.09% per year while STIP charges 0.03%. On a $10,000 position that is $9 vs $3 annually, a gap of $6 per year that compounds over a long holding period. On income, SPY currently yields 1.01% against 4.32% for STIP.
Holdings Overlap
SPY and STIP share 0 holdings out of 527 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, SPY or STIP?
SPY has an expense ratio of 0.09% while STIP charges 0.03%. STIP is the cheaper option. On a $10,000 investment, that is $6 per year of difference.
Which performed better, SPY or STIP?
Over the past year SPY returned +21.53% vs +2.23% for STIP, so SPY leads on 1-year performance. Over the longest common window we track (16 years), SPY annualized +8.85% vs +1.51% for STIP. Past performance does not guarantee future results.
Which is riskier, SPY or STIP?
SPY has been the more volatile fund at 15.3% annualized versus 2.2% for STIP. Worst drawdown: SPY -56.5% vs STIP -6.9%.
Should I hold both SPY and STIP?
SPY and STIP have a monthly-return correlation of 0.48, so combining them can provide real diversification depending on your allocation goals.
What is the holdings overlap between SPY and STIP?
SPY and STIP share 0 common holdings with a 0.0% weight overlap. Combined, they hold 527 unique securities.
Which pays a higher dividend, SPY or STIP?
SPY yields 1.01% while STIP yields 4.32%, so STIP currently pays the higher dividend yield.
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