IBHG vs SPY
iShares iBonds 2027 Term High Yield and Income ETF vs State Street SPDR S&P 500 ETF Trust
Which is better, IBHG or SPY?
High Yield Bond against Large Cap Blend.
SPY has a lower expense ratio. SPY led over 1Y, 3Y, 5Y and the full window. IBHG is less concentrated, with 24.0% of the fund in its ten largest positions against 38.2%.
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 | IBHG | SPY |
|---|---|---|
| Expense Ratio | 0.35% | 0.09%Best |
| AUM | $532M | $823.2B |
| Dividend Yield | 5.98% | 0.99% |
| Holdings | 394 | 1,515 |
| YTD Return | -2.42% | +13.85%Best |
| 1Y Return | -2.00% | +17.28%Best |
| 3Y Return (annualized) | +5.91% | +22.45%Best |
| 5Y Return (annualized) | +2.59% | +13.10%Best |
| Volatility (annualized) | 6.7%Best | 15.5% |
| Max Drawdown | -13.8%Best | -24.5% |
| $10,000 over 5 years | $11,364 | $18,506Best |
| Top 10 Weight | 24.0%Best | 38.2% |
| Fund Family | iShares by BlackRock (US) | State Street Investment Management |
| Category | Fixed Income | Equity |
| Style | High Yield Bond | Large Cap Blend |
| Inception | Jul 7, 2021 | Jan 22, 1993 |
Volatility and max drawdown are measured over the window both funds cover: Jul 9, 2021 to Oct 15, 2026 (5.3 years).
IBHG vs SPY 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 5.3 years both funds cover.
IBHG vs SPY Performance
iShares iBonds 2027 Term High Yield and Income ETF (IBHG) is an ETF from iShares by BlackRock (US) and State Street SPDR S&P 500 ETF Trust (SPY) is an ETF from State Street Investment Management. Over the past year IBHG returned -2.00% while SPY returned +17.28%. Year to date, IBHG is down 2.42% versus a gain of 13.85% for SPY.
Over three years, IBHG compounded at +5.91% per year against +22.45% for SPY; over five years the annualized figures are +2.59% and +13.10% respectively.
Past performance does not guarantee future results.
Risk: Volatility and Drawdowns
SPY has been the more volatile fund, with annualized monthly volatility of 15.5% compared with 6.7% for IBHG. 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 -13.8% for IBHG and -24.5% for SPY. Drawdown depth is what each fund did in the worst stretch of the window measured above.
The two funds' monthly returns correlate at 0.78. They usually move together, but the gap leaves some room for diversification.
Fees and Cost Over Time
IBHG charges 0.35% per year while SPY charges 0.09%. On a $10,000 position that is $35 vs $9 annually, a gap of $26 per year that compounds over a long holding period. On income, IBHG currently yields 5.98% against 0.99% for SPY.
Holdings Overlap
We hold position weights for 375 holdings in IBHG and 504 in SPY, totalling 96.3% and 99.8% of the two funds. The two books name no position in common, so there is no overlap percentage to show.
0 positions in common, counted across the 375 positions we hold weights for in IBHG and 504 in SPY, against full books of 394 and 1,515.
What only one of them owns
Measured across the 375 and 504 positions we hold weights for.
SPY holds 492 positions IBHG does not, 99.2% of the fund.
Largest: NVDA 7.78%, AAPL 7.45%, MSFT 5.71%, AMZN 3.78%, GOOGL 3.12%
You are not choosing between two funds in isolation.
Whichever of IBHG and SPY 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, IBHG or SPY?
IBHG has an expense ratio of 0.35% while SPY charges 0.09%. SPY is the cheaper option, by $26 a year on a $10,000 investment.
Which performed better, IBHG or SPY?
Over the past year IBHG returned -2.00% vs +17.28% for SPY, so SPY leads on 1-year performance. Past performance does not guarantee future results. This is information, not a recommendation.
Which is riskier, IBHG or SPY?
SPY has been the more volatile fund at 15.5% annualized versus 6.7% for IBHG. Worst drawdown: IBHG -13.8% vs SPY -24.5%.
Should I hold both IBHG and SPY?
IBHG and SPY have a monthly-return correlation of 0.78, 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, IBHG or SPY?
IBHG yields 5.98% while SPY yields 0.99%, so IBHG currently pays the higher dividend yield.
Is SPY better than IBHG?
SPY has a lower expense ratio. SPY led over 1Y, 3Y, 5Y and the full window. IBHG is less concentrated, with 24.0% of the fund in its ten largest positions against 38.2%. Which one suits a particular account depends on what it is for. This is information, not a recommendation.