IYZ vs SPY
iShares US Telecommunications ETF vs State Street SPDR S&P 500 ETF Trust
Which is better, IYZ or SPY?
Large Cap Value against Large Cap Blend.
SPY has a lower expense ratio. IYZ led over 1Y and 3Y, SPY over 5Y and the full window. SPY is less concentrated, with 38.2% of the fund in its ten largest positions against 70.5%.
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 | IYZ | SPY |
|---|---|---|
| Expense Ratio | 0.37% | 0.09%Best |
| AUM | $1.0B | $823.2B |
| Dividend Yield | 1.63% | 0.99% |
| Holdings | 54 | 1,515 |
| YTD Return | +19.51%Best | +13.53% |
| 1Y Return | +24.01%Best | +17.47% |
| 3Y Return (annualized) | +26.32%Best | +22.36% |
| 5Y Return (annualized) | +6.69% | +13.21%Best |
| Volatility (annualized) | 19.3% | 15.1%Best |
| Max Drawdown | -72.5% | -56.5%Best |
| $10,000 over 5 years | $13,824 | $18,596Best |
| Top 10 Weight | 70.5% | 38.2%Best |
| Fund Family | iShares by BlackRock (US) | State Street Investment Management |
| Category | Equity | Equity |
| Style | Large Cap Value | Large Cap Blend |
| Inception | May 22, 2000 | Jan 22, 1993 |
Volatility and max drawdown are measured over the window both funds cover: Jan 2, 2001 to Oct 14, 2026 (25.8 years).
IYZ 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 25.8 years both funds cover.
IYZ vs SPY Performance
iShares US Telecommunications ETF (IYZ) 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 IYZ returned +24.01% while SPY returned +17.47%. Year to date, IYZ is up 19.51% versus a gain of 13.53% for SPY.
Over three years, IYZ compounded at +26.32% per year against +22.36% for SPY; over five years the annualized figures are +6.69% and +13.21% respectively. Across the full 26-year window we track, SPY has the edge at +7.50% annualized vs +0.61%.
Past performance does not guarantee future results.
Risk: Volatility and Drawdowns
IYZ has been the more volatile fund, with annualized monthly volatility of 19.3% compared with 15.1% for SPY. 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 -72.5% for IYZ and -56.5% 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 0.75. They usually move together, but the gap leaves some room for diversification.
Fees and Cost Over Time
IYZ charges 0.37% per year while SPY charges 0.09%. On a $10,000 position that is $37 vs $9 annually, a gap of $28 per year that compounds over a long holding period. On income, IYZ currently yields 1.63% against 0.99% for SPY.
Holdings Overlap
71.8% of IYZ's money is in holdings SPY also owns. 2.2% of SPY's money is in holdings IYZ also owns.
Most of IYZ is already inside SPY. Owning both mostly buys the same companies twice.
11 positions in common, counted across the 23 positions we hold weights for in IYZ and 504 in SPY, against full books of 54 and 1,515.
What only one of them owns
Our book lists 485 positions for SPY that do not appear in our book for IYZ (96.9% of the fund), and 9 for IYZ that do not appear in SPY (23.4%).
Some of those will be the same company recorded under a different code in one of the two books, so the real difference in what you would own is no larger than this and may be smaller. We do not name the individual positions here for that reason.
Top Shared Holdings
| Stock | Weight in IYZ | Weight in SPY | Difference |
|---|---|---|---|
| CSCOCisco Systems Inc. - Ordinary Shares | 22.64% | 0.66% | 21.98% |
| ANETArista Networks Inc. | 11.89% | 0.30% | 11.59% |
| VZVerizon Communic | 10.69% | 0.33% | 10.36% |
| TAT&T Inc. | 4.40% | 0.28% | 4.12% |
| LITELumentum Holdings Inc | 3.71% | 0.10% | 3.61% |
| CIENCiena Corp | 3.56% | 0.07% | 3.49% |
| MSIMotorola Solutions, Inc | 3.41% | 0.12% | 3.29% |
| TMUST-Mobile Usa Inc Esrw Usd Npv Ref Sm#585558 | 3.30% | 0.13% | 3.17% |
| CMCSAComcast Corp. Class A | 3.20% | 0.14% | 3.06% |
| SATS'echostar Communications Corp. Class 'a'' | 2.68% | 0.02% | 2.66% |
71.8% of IYZ is already inside SPY.
You probably hold more than these two. Add the rest and see how much of the whole book is the same companies twice.
Free for up to 10 holdings. No account needed.
Frequently Asked Questions
Which is cheaper, IYZ or SPY?
IYZ has an expense ratio of 0.37% while SPY charges 0.09%. SPY is the cheaper option, by $28 a year on a $10,000 investment.
Which performed better, IYZ or SPY?
Over the past year IYZ returned +24.01% vs +17.47% for SPY, so IYZ leads on 1-year performance. Over the longest common window we track (26 years), IYZ annualized +0.61% vs +7.50% for SPY. Past performance does not guarantee future results. This is information, not a recommendation.
Which is riskier, IYZ or SPY?
IYZ has been the more volatile fund at 19.3% annualized versus 15.1% for SPY. Worst drawdown: IYZ -72.5% vs SPY -56.5%.
Should I hold both IYZ and SPY?
IYZ and SPY have a monthly-return correlation of 0.75, so their returns are far enough apart for the mix to behave differently from either one alone. This is information, not a recommendation.
What is the holdings overlap between IYZ and SPY?
71.8% of IYZ's money is in holdings SPY also owns. 2.2% of SPY's is in holdings IYZ also owns. They hold 11 positions in common, counted across the 23 positions we hold weights for in IYZ and 504 in SPY.
Which pays a higher dividend, IYZ or SPY?
IYZ yields 1.63% while SPY yields 0.99%, so IYZ currently pays the higher dividend yield.
Is SPY better than IYZ?
SPY has a lower expense ratio. IYZ led over 1Y and 3Y, SPY over 5Y and the full window. SPY is less concentrated, with 38.2% of the fund in its ten largest positions against 70.5%. Which one suits a particular account depends on what it is for. This is information, not a recommendation.