SPY vs TDTT
State Street SPDR S&P 500 ETF Trust vs Northern Trust iBoxx 3-Year Target Duration TIPS ETF
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 | TDTT | Winner |
|---|---|---|---|
| Expense Ratio | 0.09% | 0.18% | |
| AUM | $814.4B | $2.5B | |
| Dividend Yield | 1.01% | 5.14% | |
| Holdings | 505 | 24 | |
| YTD Return | +12.60% | +1.46% | |
| 1Y Return | +20.83% | +1.59% | |
| 3Y Return (annualized) | +20.98% | +4.91% | |
| 5Y Return (annualized) | +12.56% | +2.49% | |
| Volatility (annualized) | 15.3% | 2.7% | |
| Max Drawdown | -56.5% | -8.3% | |
| Fund Family | State Street Investment Management | Northern Trust Asset Management | |
| Category | Equity | Fixed Income | |
| Inception | Jan 22, 1993 | Sep 19, 2011 |
SPY vs TDTT Performance
State Street SPDR S&P 500 ETF Trust (SPY) is a ETF from State Street Investment Management and Northern Trust iBoxx 3-Year Target Duration TIPS ETF (TDTT) is a ETF from Northern Trust Asset Management. Over the past year SPY returned +20.83% while TDTT returned +1.59%. Year to date, SPY is up 12.60% versus a gain of 1.46% for TDTT.
Over three years, SPY compounded at +20.98% per year against +4.91% for TDTT; over five years the annualized figures are +12.56% and +2.49% respectively. Across the full 15-year window we track, SPY has the edge at +8.79% annualized vs +1.42%. 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 2.7% for TDTT. 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 -8.3% for TDTT. 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 0.44. They move independently enough that combining them can meaningfully diversify a portfolio.
Fees and Cost Over Time
SPY charges 0.09% per year while TDTT 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 5.14% for TDTT.
Holdings Overlap
SPY and TDTT share 0 holdings out of 523 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 TDTT?
SPY has an expense ratio of 0.09% while TDTT 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 TDTT?
Over the past year SPY returned +20.83% vs +1.59% for TDTT, so SPY leads on 1-year performance. Over the longest common window we track (15 years), SPY annualized +8.79% vs +1.42% for TDTT. Past performance does not guarantee future results.
Which is riskier, SPY or TDTT?
SPY has been the more volatile fund at 15.3% annualized versus 2.7% for TDTT. Worst drawdown: SPY -56.5% vs TDTT -8.3%.
Should I hold both SPY and TDTT?
SPY and TDTT have a monthly-return correlation of 0.44, so combining them can provide real diversification depending on your allocation goals.
What is the holdings overlap between SPY and TDTT?
SPY and TDTT share 0 common holdings with a 0.0% weight overlap. Combined, they hold 523 unique securities.
Which pays a higher dividend, SPY or TDTT?
SPY yields 1.01% while TDTT yields 5.14%, so TDTT currently pays the higher dividend yield.
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