SPY vs TFLO
State Street SPDR S&P 500 ETF Trust vs iShares Treasury Floating Rate Bond 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 | TFLO | Winner |
|---|---|---|---|
| Expense Ratio | 0.09% | 0.15% | |
| AUM | $789.1B | $6.6B | |
| Dividend Yield | 1.01% | 3.89% | |
| Holdings | 505 | 10 | |
| YTD Return | +14.47% | +2.00% | |
| 1Y Return | +21.96% | +3.58% | |
| 3Y Return (annualized) | +21.70% | +4.53% | |
| 5Y Return (annualized) | +13.30% | +3.73% | |
| Volatility (annualized) | 15.3% | 0.7% | |
| Max Drawdown | -56.5% | -5.0% | |
| Fund Family | State Street Investment Management | iShares by BlackRock (US) | |
| Category | Equity | Fixed Income | |
| Inception | Jan 22, 1993 | Feb 4, 2014 |
SPY vs TFLO Performance
State Street SPDR S&P 500 ETF Trust (SPY) is a ETF from State Street Investment Management and iShares Treasury Floating Rate Bond ETF (TFLO) is a ETF from iShares by BlackRock (US). Over the past year SPY returned +21.96% while TFLO returned +3.58%. Year to date, SPY is up 14.47% versus a gain of 2.00% for TFLO.
Over three years, SPY compounded at +21.70% per year against +4.53% for TFLO; over five years the annualized figures are +13.30% and +3.73% respectively. Across the full 13-year window we track, SPY has the edge at +8.87% annualized vs +1.50%. 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 0.7% for TFLO. 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 -5.0% for TFLO. 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 0.07. They move independently enough that combining them can meaningfully diversify a portfolio.
Fees and Cost Over Time
SPY charges 0.09% per year while TFLO charges 0.15%. On a $10,000 position that is $9 vs $15 annually, a gap of $6 per year that compounds over a long holding period. On income, SPY currently yields 1.01% against 3.89% for TFLO.
Holdings Overlap
SPY and TFLO share 0 holdings out of 507 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 TFLO?
SPY has an expense ratio of 0.09% while TFLO charges 0.15%. SPY is the cheaper option. On a $10,000 investment, that is $6 per year of difference.
Which performed better, SPY or TFLO?
Over the past year SPY returned +21.96% vs +3.58% for TFLO, so SPY leads on 1-year performance. Over the longest common window we track (13 years), SPY annualized +8.87% vs +1.50% for TFLO. Past performance does not guarantee future results.
Which is riskier, SPY or TFLO?
SPY has been the more volatile fund at 15.3% annualized versus 0.7% for TFLO. Worst drawdown: SPY -56.5% vs TFLO -5.0%.
Should I hold both SPY and TFLO?
SPY and TFLO have a monthly-return correlation of 0.07, so combining them can provide real diversification depending on your allocation goals.
What is the holdings overlap between SPY and TFLO?
SPY and TFLO share 0 common holdings with a 0.0% weight overlap. Combined, they hold 507 unique securities.
Which pays a higher dividend, SPY or TFLO?
SPY yields 1.01% while TFLO yields 3.89%, so TFLO currently pays the higher dividend yield.
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