AOA vs SPY

Quick Verdict

SPY has a lower expense ratio. SPY delivered stronger 1-year returns. SPY offers more diversification with 503 holdings.

Lower Fees: SPYHigher Returns: SPYMore Diversified: SPY

Side-by-Side Comparison

MetricAOASPYWinner
Expense Ratio0.15%0.09%
AUM$3.2B$789.1B
Dividend Yield2.05%1.01%
Holdings11505
YTD Return+11.49%+13.79%
1Y Return+20.87%+23.66%
3Y Return (annualized)+17.10%+21.40%
5Y Return (annualized)+9.26%+13.37%
Volatility (annualized)12.9%15.3%
Max Drawdown-28.4%-56.5%
Fund FamilyiShares by BlackRock (US)State Street Investment Management
CategoryAllocation/BalancedEquity
InceptionNov 4, 2008Jan 22, 1993

AOA vs SPY Performance

iShares Core 80/20 Aggressive Allocation ETF (AOA) is a ETF from iShares by BlackRock (US) and State Street SPDR S&P 500 ETF Trust (SPY) is a ETF from State Street Investment Management. Over the past year AOA returned +20.87% while SPY returned +23.66%. Year to date, AOA is up 11.49% versus a gain of 13.79% for SPY.

Over three years, AOA compounded at +17.10% per year against +21.40% for SPY; over five years the annualized figures are +9.26% and +13.37% respectively. Across the full 18-year window we track, SPY has the edge at +8.85% annualized vs +8.78%. 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 12.9% for AOA. 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 -28.4% for AOA and -56.5% for SPY. 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 0.96. They move almost in lockstep, so holding both mostly duplicates the same exposure.

Fees and Cost Over Time

AOA charges 0.15% per year while SPY charges 0.09%. On a $10,000 position that is $15 vs $9 annually, a gap of $6 per year that compounds over a long holding period. On income, AOA currently yields 2.05% against 1.01% for SPY.

Holdings Overlap

0.0%overlap

AOA and SPY share 0 holdings out of 511 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, AOA or SPY?

AOA has an expense ratio of 0.15% while SPY charges 0.09%. SPY is the cheaper option. On a $10,000 investment, that is $6 per year of difference.

Which performed better, AOA or SPY?

Over the past year AOA returned +20.87% vs +23.66% for SPY, so SPY leads on 1-year performance. Over the longest common window we track (18 years), AOA annualized +8.78% vs +8.85% for SPY. Past performance does not guarantee future results.

Which is riskier, AOA or SPY?

SPY has been the more volatile fund at 15.3% annualized versus 12.9% for AOA. Worst drawdown: AOA -28.4% vs SPY -56.5%.

Should I hold both AOA and SPY?

AOA and SPY have a monthly-return correlation of 0.96, so they move almost identically. Holding both adds little diversification - most investors pick one, usually on fees or the specific index tracked.

What is the holdings overlap between AOA and SPY?

AOA and SPY share 0 common holdings with a 0.0% weight overlap. Combined, they hold 511 unique securities.

Which pays a higher dividend, AOA or SPY?

AOA yields 2.05% while SPY yields 1.01%, so AOA currently pays the higher dividend yield.

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