SPY vs TAGG
State Street SPDR S&P 500 ETF Trust vs T Rowe Price QM US Bond ETF
Which is better, SPY or TAGG?
SPY has been ahead.
TAGG has a lower expense ratio. SPY led over 1Y, 3Y, 5Y and the full window.
MarketXLS is not an investment adviser. This comparison is generated automatically from market data and is for information only. A Best mark means the better reading on that one measure, not a recommendation to buy.
Side-by-Side Comparison
| Metric | SPY | TAGG |
|---|---|---|
| Expense Ratio | 0.09% | 0.08%Best |
| AUM | $804.7B | $2.6B |
| Dividend Yield | 0.98% | 4.59% |
| Holdings | 505 | 1,830 |
| YTD Return | +12.47%Best | -1.32% |
| 1Y Return | +17.51%Best | -0.60% |
| 3Y Return (annualized) | +21.18%Best | +4.07% |
| 5Y Return (annualized) | +12.88%Best | -0.15% |
| Volatility (annualized) | 15.7% | 6.5%Best |
| Max Drawdown | -24.5% | -17.3%Best |
| $10,000 over 5 years | $18,327Best | $9,925 |
| Fund Family | State Street Investment Management | T.Rowe Price |
| Category | Equity | Fixed Income |
| Style | Large Cap Blend | - |
| Inception | Jan 22, 1993 | Sep 28, 2021 |
Not shown on this pair: Top 10 Weight.
Volatility and max drawdown are measured over the window both funds cover: Sep 29, 2021 to Sep 11, 2026 (5 years).
SPY vs TAGG growth
Month-end closes. Both lines start at 0% in the first month shown, so the gap between them is the difference in growth across that window. The full view covers the 5 years both funds cover.
SPY vs TAGG Performance
State Street SPDR S&P 500 ETF Trust (SPY) is an ETF from State Street Investment Management and T Rowe Price QM US Bond ETF (TAGG) is an ETF from T.Rowe Price. Over the past year SPY returned +17.51% while TAGG returned -0.60%. Year to date, SPY is up 12.47% versus a loss of 1.32% for TAGG.
Over three years, SPY compounded at +21.18% per year against +4.07% for TAGG; over five years the annualized figures are +12.88% and -0.15% respectively.
Past performance does not guarantee future results.
Risk: Volatility and Drawdowns
SPY has been the more volatile fund, with annualized monthly volatility of 15.7% compared with 6.5% for TAGG. 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 -24.5% for SPY and -17.3% for TAGG. Drawdown depth is what each fund did in the worst stretch of the window measured above.
The two funds' monthly returns correlate at 0.59. They move together some of the time, and apart the rest.
Fees and Cost Over Time
SPY charges 0.09% per year while TAGG charges 0.08%. On a $10,000 position that is $9 vs $8 annually, a gap of $1 per year that compounds over a long holding period. On income, SPY currently yields 0.98% against 4.59% for TAGG.
Holdings Overlap
At least 0.6% of SPY's money is in holdings TAGG also owns.
Stated as a floor: for TAGG, our book for it covers 59.4% of that fund, so a holding it does not list is one we cannot count as shared. The real figure is this or higher.
We cannot see either book well enough to say how much of this pair is duplicated.
1 positions in common, counted across the 504 positions we hold weights for in SPY and 1,271 in TAGG, against full books of 505 and 1,830.
Top Shared Holdings
| Stock | Weight in SPY | Weight in TAGG | Difference |
|---|---|---|---|
| GEGeneral Electric Co. | 0.59% | 0.02% | 0.57% |
You are not choosing between two funds in isolation.
Whichever of SPY and TAGG you pick has to sit alongside everything else you own. Add the rest and see what the combination actually holds.
Free for up to 10 holdings. No account needed.
Frequently Asked Questions
Which is cheaper, SPY or TAGG?
SPY has an expense ratio of 0.09% while TAGG charges 0.08%. TAGG is the cheaper option, by $1 a year on a $10,000 investment.
Which performed better, SPY or TAGG?
Over the past year SPY returned +17.51% vs -0.60% for TAGG, so SPY leads on 1-year performance. Past performance does not guarantee future results. This is information, not a recommendation.
Which is riskier, SPY or TAGG?
SPY has been the more volatile fund at 15.7% annualized versus 6.5% for TAGG. Worst drawdown: SPY -24.5% vs TAGG -17.3%.
Should I hold both SPY and TAGG?
SPY and TAGG have a monthly-return correlation of 0.59, so their returns are far enough apart for the mix to behave differently from either one alone. This is information, not a recommendation.
Which pays a higher dividend, SPY or TAGG?
SPY yields 0.98% while TAGG yields 4.59%, so TAGG currently pays the higher dividend yield.
Is TAGG better than SPY?
TAGG has a lower expense ratio. SPY led over 1Y, 3Y, 5Y and the full window. Which one suits a particular account depends on what it is for. This is information, not a recommendation.