BNDI vs SPY
BNDI vs SPY
NEOS Enhanced Income Aggregate Bond 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 | BNDI | SPY | Winner |
|---|---|---|---|
| Expense Ratio | 0.58% | 0.09% | |
| AUM | $185M | $789.1B | |
| Dividend Yield | 5.81% | 1.01% | |
| Holdings | 9 | 505 | |
| YTD Return | +1.44% | +13.28% | |
| 1Y Return | +4.38% | +23.94% | |
| 3Y Return (annualized) | +5.16% | +21.07% | |
| 5Y Return (annualized) | - | +13.27% | |
| Volatility (annualized) | 6.3% | 15.3% | |
| Max Drawdown | -7.0% | -56.5% | |
| Fund Family | NEOS | State Street Investment Management | |
| Category | Fixed Income | Equity | |
| Inception | Aug 30, 2022 | Jan 22, 1993 |
BNDI vs SPY Performance
NEOS Enhanced Income Aggregate Bond ETF (BNDI) is a ETF from NEOS and State Street SPDR S&P 500 ETF Trust (SPY) is a ETF from State Street Investment Management. Over the past year BNDI returned +4.38% while SPY returned +23.94%. Year to date, BNDI is up 1.44% versus a gain of 13.28% for SPY.
Over three years, BNDI compounded at +5.16% per year against +21.07% for SPY. Across the full 4-year window we track, SPY has the edge at +8.84% annualized vs +3.84%. 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 6.3% for BNDI. 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 -7.0% for BNDI 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 0.63. They move independently enough that combining them can meaningfully diversify a portfolio.
Fees and Cost Over Time
BNDI charges 0.58% per year while SPY charges 0.09%. On a $10,000 position that is $58 vs $9 annually, a gap of $49 per year that compounds over a long holding period. On income, BNDI currently yields 5.81% against 1.01% for SPY.
Holdings Overlap
BNDI and SPY share 0 holdings out of 505 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, BNDI or SPY?
BNDI has an expense ratio of 0.58% while SPY charges 0.09%. SPY is the cheaper option. On a $10,000 investment, that is $49 per year of difference.
Which performed better, BNDI or SPY?
Over the past year BNDI returned +4.38% vs +23.94% for SPY, so SPY leads on 1-year performance. Over the longest common window we track (4 years), BNDI annualized +3.84% vs +8.84% for SPY. Past performance does not guarantee future results.
Which is riskier, BNDI or SPY?
SPY has been the more volatile fund at 15.3% annualized versus 6.3% for BNDI. Worst drawdown: BNDI -7.0% vs SPY -56.5%.
Should I hold both BNDI and SPY?
BNDI and SPY have a monthly-return correlation of 0.63, so combining them can provide real diversification depending on your allocation goals.
What is the holdings overlap between BNDI and SPY?
BNDI and SPY share 0 common holdings with a 0.0% weight overlap. Combined, they hold 505 unique securities.
Which pays a higher dividend, BNDI or SPY?
BNDI yields 5.81% while SPY yields 1.01%, so BNDI currently pays the higher dividend yield.
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