SPY vs TIPZ
State Street SPDR S&P 500 ETF Trust vs PIMCO Broad US TIPS Index Exchange-Traded Fund
Quick Verdict
SPY has a lower expense ratio. SPY delivered stronger 1-year returns. SPY offers more diversification with 503 holdings.
Side-by-Side Comparison
| Metric | SPY | TIPZ | Winner |
|---|---|---|---|
| Expense Ratio | 0.09% | 0.20% | |
| AUM | $789.1B | $89M | |
| Dividend Yield | 1.01% | 4.27% | |
| Holdings | 505 | 44 | |
| YTD Return | +13.68% | -0.22% | |
| 1Y Return | +21.53% | +1.04% | |
| 3Y Return (annualized) | +21.44% | +3.70% | |
| 5Y Return (annualized) | +13.18% | -0.10% | |
| Volatility (annualized) | 15.3% | 5.2% | |
| Max Drawdown | -56.5% | -15.8% | |
| Fund Family | State Street Investment Management | PIMCO (US) | |
| Category | Equity | Fixed Income | |
| Inception | Jan 22, 1993 | Sep 3, 2009 |
SPY vs TIPZ Performance
State Street SPDR S&P 500 ETF Trust (SPY) is a ETF from State Street Investment Management and PIMCO Broad US TIPS Index Exchange-Traded Fund (TIPZ) is a ETF from PIMCO (US). Over the past year SPY returned +21.53% while TIPZ returned +1.04%. Year to date, SPY is up 13.68% versus a loss of 0.22% for TIPZ.
Over three years, SPY compounded at +21.44% per year against +3.70% for TIPZ; over five years the annualized figures are +13.18% and -0.10% respectively. Across the full 17-year window we track, SPY has the edge at +8.85% annualized vs +1.76%. 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 5.2% for TIPZ. 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 -15.8% for TIPZ. 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 0.32. They move independently enough that combining them can meaningfully diversify a portfolio.
Fees and Cost Over Time
SPY charges 0.09% per year while TIPZ charges 0.20%. On a $10,000 position that is $9 vs $20 annually, a gap of $11 per year that compounds over a long holding period. On income, SPY currently yields 1.01% against 4.27% for TIPZ.
Holdings Overlap
SPY and TIPZ share 0 holdings out of 543 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 TIPZ?
SPY has an expense ratio of 0.09% while TIPZ charges 0.20%. SPY is the cheaper option. On a $10,000 investment, that is $11 per year of difference.
Which performed better, SPY or TIPZ?
Over the past year SPY returned +21.53% vs +1.04% for TIPZ, so SPY leads on 1-year performance. Over the longest common window we track (17 years), SPY annualized +8.85% vs +1.76% for TIPZ. Past performance does not guarantee future results.
Which is riskier, SPY or TIPZ?
SPY has been the more volatile fund at 15.3% annualized versus 5.2% for TIPZ. Worst drawdown: SPY -56.5% vs TIPZ -15.8%.
Should I hold both SPY and TIPZ?
SPY and TIPZ have a monthly-return correlation of 0.32, so combining them can provide real diversification depending on your allocation goals.
What is the holdings overlap between SPY and TIPZ?
SPY and TIPZ share 0 common holdings with a 0.0% weight overlap. Combined, they hold 543 unique securities.
Which pays a higher dividend, SPY or TIPZ?
SPY yields 1.01% while TIPZ yields 4.27%, so TIPZ currently pays the higher dividend yield.
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