BOND vs SPY
BOND vs SPY
PIMCO Active Bond Exchange-Traded Fund vs State Street SPDR S&P 500 ETF Trust
Quick Verdict
SPY has a lower expense ratio. SPY delivered stronger 1-year returns. BOND offers more diversification with 1027 holdings.
Side-by-Side Comparison
| Metric | BOND | SPY | Winner |
|---|---|---|---|
| Expense Ratio | 0.54% | 0.09% | |
| AUM | $8.4B | $789.1B | |
| Dividend Yield | 5.15% | 1.01% | |
| Holdings | 1,944 | 505 | |
| YTD Return | -0.25% | +9.93% | |
| 1Y Return | +3.85% | +19.50% | |
| 3Y Return (annualized) | +4.86% | +19.33% | |
| 5Y Return (annualized) | -0.05% | +12.82% | |
| Volatility (annualized) | 5.0% | 15.3% | |
| Max Drawdown | -19.7% | -56.5% | |
| Fund Family | PIMCO (US) | State Street Investment Management | |
| Category | Fixed Income | Equity | |
| Inception | Feb 29, 2012 | Jan 22, 1993 |
BOND vs SPY Performance
PIMCO Active Bond Exchange-Traded Fund (BOND) is a ETF from PIMCO (US) and State Street SPDR S&P 500 ETF Trust (SPY) is a ETF from State Street Investment Management. Over the past year BOND returned +3.85% while SPY returned +19.50%. Year to date, BOND is down 0.25% versus a gain of 9.93% for SPY.
Over three years, BOND compounded at +4.86% per year against +19.33% for SPY; over five years the annualized figures are -0.05% and +12.82% respectively. Across the full 14-year window we track, SPY has the edge at +8.74% annualized vs +0.86%. 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 5.0% for BOND. 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 -19.7% for BOND 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 0.44. They move independently enough that combining them can meaningfully diversify a portfolio.
Fees and Cost Over Time
BOND charges 0.54% per year while SPY charges 0.09%. On a $10,000 position that is $54 vs $9 annually, a gap of $45 per year that compounds over a long holding period. On income, BOND currently yields 5.15% against 1.01% for SPY.
Holdings Overlap
BOND and SPY share 0 holdings out of 1530 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, BOND or SPY?
BOND has an expense ratio of 0.54% while SPY charges 0.09%. SPY is the cheaper option. On a $10,000 investment, that is $45 per year of difference.
Which performed better, BOND or SPY?
Over the past year BOND returned +3.85% vs +19.50% for SPY, so SPY leads on 1-year performance. Over the longest common window we track (14 years), BOND annualized +0.86% vs +8.74% for SPY. Past performance does not guarantee future results.
Which is riskier, BOND or SPY?
SPY has been the more volatile fund at 15.3% annualized versus 5.0% for BOND. Worst drawdown: BOND -19.7% vs SPY -56.5%.
Should I hold both BOND and SPY?
BOND and SPY have a monthly-return correlation of 0.44, so combining them can provide real diversification depending on your allocation goals.
What is the holdings overlap between BOND and SPY?
BOND and SPY share 0 common holdings with a 0.0% weight overlap. Combined, they hold 1530 unique securities.
Which pays a higher dividend, BOND or SPY?
BOND yields 5.15% while SPY yields 1.01%, so BOND currently pays the higher dividend yield.
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