SPY vs TDTF
State Street SPDR S&P 500 ETF Trust vs FlexShares iBoxx 5 Year Target Duration TIPS Index Fund
Quick Verdict
SPY has a lower expense ratio. SPY delivered stronger 1-year returns. SPY offers more diversification with 505 holdings.
Side-by-Side Comparison
| Metric | SPY | TDTF | Winner |
|---|---|---|---|
| Expense Ratio | 0.09% | 0.18% | |
| AUM | $789.1B | $1.0B | |
| Dividend Yield | 1.01% | 4.73% | |
| Holdings | 505 | 18 | |
| YTD Return | +14.47% | +0.59% | |
| 1Y Return | +21.96% | +1.29% | |
| 3Y Return (annualized) | +21.70% | +4.51% | |
| 5Y Return (annualized) | +13.30% | +1.04% | |
| Volatility (annualized) | 15.3% | 4.3% | |
| Max Drawdown | -56.5% | -12.0% | |
| Fund Family | State Street Investment Management | Flexshares Trust | |
| Category | Equity | Fixed Income | |
| Inception | Jan 22, 1993 | Sep 19, 2011 |
SPY vs TDTF Performance
State Street SPDR S&P 500 ETF Trust (SPY) is a ETF from State Street Investment Management and FlexShares iBoxx 5 Year Target Duration TIPS Index Fund (TDTF) is a ETF from Flexshares Trust. Over the past year SPY returned +21.96% while TDTF returned +1.29%. Year to date, SPY is up 14.47% versus a gain of 0.59% for TDTF.
Over three years, SPY compounded at +21.70% per year against +4.51% for TDTF; over five years the annualized figures are +13.30% and +1.04% respectively. Across the full 15-year window we track, SPY has the edge at +8.87% annualized vs +1.31%. 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 4.3% for TDTF. 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 -12.0% for TDTF. 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 0.41. They move independently enough that combining them can meaningfully diversify a portfolio.
Fees and Cost Over Time
SPY charges 0.09% per year while TDTF charges 0.18%. On a $10,000 position that is $9 vs $18 annually, a gap of $9 per year that compounds over a long holding period. On income, SPY currently yields 1.01% against 4.73% for TDTF.
Holdings Overlap
SPY and TDTF share 0 holdings out of 517 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 TDTF?
SPY has an expense ratio of 0.09% while TDTF charges 0.18%. SPY is the cheaper option. On a $10,000 investment, that is $9 per year of difference.
Which performed better, SPY or TDTF?
Over the past year SPY returned +21.96% vs +1.29% for TDTF, so SPY leads on 1-year performance. Over the longest common window we track (15 years), SPY annualized +8.87% vs +1.31% for TDTF. Past performance does not guarantee future results.
Which is riskier, SPY or TDTF?
SPY has been the more volatile fund at 15.3% annualized versus 4.3% for TDTF. Worst drawdown: SPY -56.5% vs TDTF -12.0%.
Should I hold both SPY and TDTF?
SPY and TDTF have a monthly-return correlation of 0.41, so combining them can provide real diversification depending on your allocation goals.
What is the holdings overlap between SPY and TDTF?
SPY and TDTF share 0 common holdings with a 0.0% weight overlap. Combined, they hold 517 unique securities.
Which pays a higher dividend, SPY or TDTF?
SPY yields 1.01% while TDTF yields 4.73%, so TDTF currently pays the higher dividend yield.
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