BND vs SPY
BND vs SPY
Vanguard Total Bond Market ETF vs State Street SPDR S&P 500 ETF Trust
Quick Verdict
BND has a lower expense ratio. SPY delivered stronger 1-year returns. BND offers more diversification with 10790 holdings.
Side-by-Side Comparison
| Metric | BND | SPY | Winner |
|---|---|---|---|
| Expense Ratio | 0.03% | 0.09% | |
| AUM | $159.8B | $789.1B | |
| Dividend Yield | 3.94% | 1.01% | |
| Holdings | 17,528 | 505 | |
| YTD Return | -0.18% | +13.28% | |
| 1Y Return | +1.97% | +23.94% | |
| 3Y Return (annualized) | +4.13% | +21.07% | |
| 5Y Return (annualized) | -0.37% | +13.27% | |
| Volatility (annualized) | 4.6% | 15.3% | |
| Max Drawdown | -19.6% | -56.5% | |
| Fund Family | Vanguard (US) | State Street Investment Management | |
| Category | Fixed Income | Equity | |
| Inception | Apr 3, 2007 | Jan 22, 1993 |
BND vs SPY Performance
Vanguard Total Bond Market ETF (BND) is a ETF from Vanguard (US) and State Street SPDR S&P 500 ETF Trust (SPY) is a ETF from State Street Investment Management. Over the past year BND returned +1.97% while SPY returned +23.94%. Year to date, BND is down 0.18% versus a gain of 13.28% for SPY.
Over three years, BND compounded at +4.13% per year against +21.07% for SPY; over five years the annualized figures are -0.37% and +13.27% respectively. Across the full 19-year window we track, SPY has the edge at +8.84% annualized vs +0.69%. 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 4.6% for BND. 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 -19.6% for BND 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 0.25. They move independently enough that combining them can meaningfully diversify a portfolio.
Fees and Cost Over Time
BND charges 0.03% per year while SPY charges 0.09%. On a $10,000 position that is $3 vs $9 annually, a gap of $6 per year that compounds over a long holding period. On income, BND currently yields 3.94% against 1.01% for SPY.
Holdings Overlap
BND and SPY share 6 holdings out of 11287 unique holdings combined, representing a 0.0% weight overlap.
Moderate overlap means holding both could provide meaningful diversification benefits.
Top Shared Holdings
| Stock | Weight in BND | Weight in SPY | Difference |
|---|---|---|---|
| LRCX | 0.00% | 0.68% | 0.68% |
| DUK | 0.00% | 0.15% | 0.15% |
| AON | 0.00% | 0.12% | 0.12% |
| KDP | Pro | Pro | Pro |
| CNP | Pro | Pro | Pro |
| HUBB | Pro | Pro | Pro |
See all 6 holdings BND shares with SPY Exact weights in each fund and the difference, for every overlapping position. Get FundXLS Pro: $29/moFirst 500 subscribers, then $49/mo. Cancel anytime. | |||
Frequently Asked Questions
Which is cheaper, BND or SPY?
BND has an expense ratio of 0.03% while SPY charges 0.09%. BND is the cheaper option. On a $10,000 investment, that is $6 per year of difference.
Which performed better, BND or SPY?
Over the past year BND returned +1.97% vs +23.94% for SPY, so SPY leads on 1-year performance. Over the longest common window we track (19 years), BND annualized +0.69% vs +8.84% for SPY. Past performance does not guarantee future results.
Which is riskier, BND or SPY?
SPY has been the more volatile fund at 15.3% annualized versus 4.6% for BND. Worst drawdown: BND -19.6% vs SPY -56.5%.
Should I hold both BND and SPY?
BND and SPY have a monthly-return correlation of 0.25, so combining them can provide real diversification depending on your allocation goals.
What is the holdings overlap between BND and SPY?
BND and SPY share 6 common holdings with a 0.0% weight overlap. Combined, they hold 11287 unique securities.
Which pays a higher dividend, BND or SPY?
BND yields 3.94% while SPY yields 1.01%, so BND currently pays the higher dividend yield.
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