BCLO vs SPY
BCLO vs SPY
iShares BBB-B CLO Active ETF vs State Street SPDR S&P 500 ETF Trust
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 | BCLO | SPY | Winner |
|---|---|---|---|
| Expense Ratio | 0.45% | 0.09% | |
| AUM | $84M | $789.1B | |
| Dividend Yield | 6.61% | 1.01% | |
| Holdings | 50 | 505 | |
| YTD Return | +2.95% | +13.79% | |
| 1Y Return | +5.75% | +23.66% | |
| 3Y Return (annualized) | - | +21.40% | |
| 5Y Return (annualized) | - | +13.37% | |
| Volatility (annualized) | 2.9% | 15.3% | |
| Max Drawdown | -3.9% | -56.5% | |
| Fund Family | iShares by BlackRock (US) | State Street Investment Management | |
| Category | Fixed Income | Equity | |
| Inception | Jan 29, 2025 | Jan 22, 1993 |
BCLO vs SPY Performance
iShares BBB-B CLO Active ETF (BCLO) 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 BCLO returned +5.75% while SPY returned +23.66%. Year to date, BCLO is up 2.95% versus a gain of 13.79% for SPY.
Risk: Volatility and Drawdowns
SPY has been the more volatile fund, with annualized monthly volatility of 15.3% compared with 2.9% for BCLO. 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 -3.9% for BCLO 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 0.73. They usually move together, but the gap leaves some room for diversification.
Fees and Cost Over Time
BCLO charges 0.45% per year while SPY charges 0.09%. On a $10,000 position that is $45 vs $9 annually, a gap of $36 per year that compounds over a long holding period. On income, BCLO currently yields 6.61% against 1.01% for SPY.
Holdings Overlap
BCLO and SPY share 0 holdings out of 508 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, BCLO or SPY?
BCLO has an expense ratio of 0.45% while SPY charges 0.09%. SPY is the cheaper option. On a $10,000 investment, that is $36 per year of difference.
Which performed better, BCLO or SPY?
Over the past year BCLO returned +5.75% vs +23.66% for SPY, so SPY leads on 1-year performance. Over the longest common window we track (2 years), BCLO annualized +6.48% vs +8.85% for SPY. Past performance does not guarantee future results.
Which is riskier, BCLO or SPY?
SPY has been the more volatile fund at 15.3% annualized versus 2.9% for BCLO. Worst drawdown: BCLO -3.9% vs SPY -56.5%.
Should I hold both BCLO and SPY?
BCLO and SPY have a monthly-return correlation of 0.73, so combining them can provide real diversification depending on your allocation goals.
What is the holdings overlap between BCLO and SPY?
BCLO and SPY share 0 common holdings with a 0.0% weight overlap. Combined, they hold 508 unique securities.
Which pays a higher dividend, BCLO or SPY?
BCLO yields 6.61% while SPY yields 1.01%, so BCLO currently pays the higher dividend yield.
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