BIT vs SPY
BIT vs SPY
BlackRock Multi-Sector 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. BIT offers more diversification with 955 holdings.
Side-by-Side Comparison
| Metric | BIT | SPY | Winner |
|---|---|---|---|
| Expense Ratio | 4.26% | 0.09% | |
| AUM | $746M | $789.1B | |
| Dividend Yield | 11.16% | 1.01% | |
| Holdings | 1,589 | 505 | |
| YTD Return | -0.16% | +11.49% | |
| 1Y Return | -7.06% | +21.37% | |
| 3Y Return (annualized) | +3.95% | +20.76% | |
| 5Y Return (annualized) | +1.58% | +12.94% | |
| Volatility (annualized) | 13.1% | 15.3% | |
| Max Drawdown | -53.3% | -56.5% | |
| Fund Family | BlackRock, Inc. (US) | State Street Investment Management | |
| Category | Fixed Income | Equity | |
| Inception | Feb 25, 2013 | Jan 22, 1993 |
BIT vs SPY Performance
BlackRock Multi-Sector Income Trust (BIT) 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 BIT returned -7.06% while SPY returned +21.37%. Year to date, BIT is down 0.16% versus a gain of 11.49% for SPY.
Over three years, BIT compounded at +3.95% per year against +20.76% for SPY; over five years the annualized figures are +1.58% and +12.94% respectively. Across the full 13-year window we track, SPY has the edge at +8.78% annualized vs +0.37%. 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 13.1% for BIT. 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 -53.3% for BIT 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 0.67. They move independently enough that combining them can meaningfully diversify a portfolio.
Fees and Cost Over Time
BIT charges 4.26% per year while SPY charges 0.09%. On a $10,000 position that is $426 vs $9 annually, a gap of $417 per year that compounds over a long holding period. On income, BIT currently yields 11.16% against 1.01% for SPY.
Holdings Overlap
BIT and SPY share 0 holdings out of 1458 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, BIT or SPY?
BIT has an expense ratio of 4.26% while SPY charges 0.09%. SPY is the cheaper option. On a $10,000 investment, that is $417 per year of difference.
Which performed better, BIT or SPY?
Over the past year BIT returned -7.06% vs +21.37% for SPY, so SPY leads on 1-year performance. Over the longest common window we track (13 years), BIT annualized +0.37% vs +8.78% for SPY. Past performance does not guarantee future results.
Which is riskier, BIT or SPY?
SPY has been the more volatile fund at 15.3% annualized versus 13.1% for BIT. Worst drawdown: BIT -53.3% vs SPY -56.5%.
Should I hold both BIT and SPY?
BIT and SPY have a monthly-return correlation of 0.67, so combining them can provide real diversification depending on your allocation goals.
What is the holdings overlap between BIT and SPY?
BIT and SPY share 0 common holdings with a 0.0% weight overlap. Combined, they hold 1458 unique securities.
Which pays a higher dividend, BIT or SPY?
BIT yields 11.16% while SPY yields 1.01%, so BIT currently pays the higher dividend yield.
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