BGT vs SPY
BGT vs SPY
BlackRock Floating Rate Income Trust 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 | BGT | SPY | Winner |
|---|---|---|---|
| Expense Ratio | 2.10% | 0.09% | |
| AUM | $331M | $789.1B | |
| Dividend Yield | 12.94% | 1.01% | |
| Holdings | 485 | 505 | |
| YTD Return | +4.24% | +13.28% | |
| 1Y Return | -0.90% | +23.94% | |
| 3Y Return (annualized) | +9.36% | +21.07% | |
| 5Y Return (annualized) | +6.92% | +13.27% | |
| Volatility (annualized) | 14.1% | 15.3% | |
| Max Drawdown | -64.1% | -56.5% | |
| Fund Family | BlackRock, Inc. (US) | State Street Investment Management | |
| Category | Fixed Income | Equity | |
| Inception | Aug 30, 2004 | Jan 22, 1993 |
BGT vs SPY Performance
BlackRock Floating Rate Income Trust (BGT) is a ETF from BlackRock, Inc. (US) and State Street SPDR S&P 500 ETF Trust (SPY) is a ETF from State Street Investment Management. Over the past year BGT returned -0.90% while SPY returned +23.94%. Year to date, BGT is up 4.24% versus a gain of 13.28% for SPY.
Over three years, BGT compounded at +9.36% per year against +21.07% for SPY; over five years the annualized figures are +6.92% and +13.27% respectively. Across the full 22-year window we track, SPY has the edge at +8.84% annualized vs -0.31%. 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 14.1% for BGT. 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 -64.1% for BGT 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 0.59. They move independently enough that combining them can meaningfully diversify a portfolio.
Fees and Cost Over Time
BGT charges 2.10% per year while SPY charges 0.09%. On a $10,000 position that is $210 vs $9 annually, a gap of $201 per year that compounds over a long holding period. On income, BGT currently yields 12.94% against 1.01% for SPY.
Holdings Overlap
BGT and SPY share 0 holdings out of 736 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, BGT or SPY?
BGT has an expense ratio of 2.10% while SPY charges 0.09%. SPY is the cheaper option. On a $10,000 investment, that is $201 per year of difference.
Which performed better, BGT or SPY?
Over the past year BGT returned -0.90% vs +23.94% for SPY, so SPY leads on 1-year performance. Over the longest common window we track (22 years), BGT annualized -0.31% vs +8.84% for SPY. Past performance does not guarantee future results.
Which is riskier, BGT or SPY?
SPY has been the more volatile fund at 15.3% annualized versus 14.1% for BGT. Worst drawdown: BGT -64.1% vs SPY -56.5%.
Should I hold both BGT and SPY?
BGT and SPY have a monthly-return correlation of 0.59, so combining them can provide real diversification depending on your allocation goals.
What is the holdings overlap between BGT and SPY?
BGT and SPY share 0 common holdings with a 0.0% weight overlap. Combined, they hold 736 unique securities.
Which pays a higher dividend, BGT or SPY?
BGT yields 12.94% while SPY yields 1.01%, so BGT currently pays the higher dividend yield.
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