BNDS vs SPY
BNDS vs SPY
Infrastructure Capital Bond Income 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 | BNDS | SPY | Winner |
|---|---|---|---|
| Expense Ratio | 0.88% | 0.09% | |
| AUM | $94M | $789.1B | |
| Dividend Yield | 8.71% | 1.01% | |
| Holdings | 77 | 505 | |
| YTD Return | +3.88% | +9.93% | |
| 1Y Return | +9.12% | +19.50% | |
| 3Y Return (annualized) | - | +19.33% | |
| 5Y Return (annualized) | - | +12.82% | |
| Volatility (annualized) | 5.4% | 15.3% | |
| Max Drawdown | -7.0% | -56.5% | |
| Fund Family | InfraCap | State Street Investment Management | |
| Category | Fixed Income | Equity | |
| Inception | Jan 15, 2025 | Jan 22, 1993 |
BNDS vs SPY Performance
Infrastructure Capital Bond Income ETF (BNDS) is a ETF from InfraCap and State Street SPDR S&P 500 ETF Trust (SPY) is a ETF from State Street Investment Management. Over the past year BNDS returned +9.12% while SPY returned +19.50%. Year to date, BNDS is up 3.88% versus a gain of 9.93% for SPY.
Risk: Volatility and Drawdowns
SPY has been the more volatile fund, with annualized monthly volatility of 15.3% compared with 5.4% for BNDS. 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 BNDS 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 0.79. They usually move together, but the gap leaves some room for diversification.
Fees and Cost Over Time
BNDS charges 0.88% per year while SPY charges 0.09%. On a $10,000 position that is $88 vs $9 annually, a gap of $79 per year that compounds over a long holding period. On income, BNDS currently yields 8.71% against 1.01% for SPY.
Holdings Overlap
BNDS and SPY share 1 holdings out of 572 unique holdings combined, representing a 0.1% weight overlap.
Moderate overlap means holding both could provide meaningful diversification benefits.
Top Shared Holdings
| Stock | Weight in BNDS | Weight in SPY | Difference |
|---|---|---|---|
| GM | 2.30% | 0.11% | 2.19% |
Frequently Asked Questions
Which is cheaper, BNDS or SPY?
BNDS has an expense ratio of 0.88% while SPY charges 0.09%. SPY is the cheaper option. On a $10,000 investment, that is $79 per year of difference.
Which performed better, BNDS or SPY?
Over the past year BNDS returned +9.12% vs +19.50% for SPY, so SPY leads on 1-year performance. Over the longest common window we track (2 years), BNDS annualized +8.11% vs +8.74% for SPY. Past performance does not guarantee future results.
Which is riskier, BNDS or SPY?
SPY has been the more volatile fund at 15.3% annualized versus 5.4% for BNDS. Worst drawdown: BNDS -7.0% vs SPY -56.5%.
Should I hold both BNDS and SPY?
BNDS and SPY have a monthly-return correlation of 0.79, so combining them can provide real diversification depending on your allocation goals.
What is the holdings overlap between BNDS and SPY?
BNDS and SPY share 1 common holdings with a 0.1% weight overlap. Combined, they hold 572 unique securities.
Which pays a higher dividend, BNDS or SPY?
BNDS yields 8.71% while SPY yields 1.01%, so BNDS currently pays the higher dividend yield.
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