BCLO 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

MetricBCLOSPYWinner
Expense Ratio0.45%0.09%
AUM$84M$789.1B
Dividend Yield6.61%1.01%
Holdings50505
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 FamilyiShares by BlackRock (US)State Street Investment Management
CategoryFixed IncomeEquity
InceptionJan 29, 2025Jan 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

0.0%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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