FBND vs SPY

Quick Verdict

SPY has a lower expense ratio. SPY delivered stronger 1-year returns. SPY offers more diversification with 503 holdings.

Lower Fees: SPYHigher Returns: SPYMore Diversified: SPY

Side-by-Side Comparison

MetricFBNDSPYWinner
Expense Ratio0.36%0.09%
AUM$26.6B$789.1B
Dividend Yield5.07%1.01%
Holdings1,558505
YTD Return-0.08%+11.49%
1Y Return+2.22%+21.37%
3Y Return (annualized)+4.67%+20.76%
5Y Return (annualized)+0.33%+12.94%
Volatility (annualized)5.0%15.3%
Max Drawdown-17.3%-56.5%
Fund FamilyFidelity Investments (US)State Street Investment Management
CategoryFixed IncomeEquity
InceptionOct 6, 2014Jan 22, 1993

FBND vs SPY Performance

Fidelity Total Bond ETF (FBND) is a ETF from Fidelity Investments (US) and State Street SPDR S&P 500 ETF Trust (SPY) is a ETF from State Street Investment Management. Over the past year FBND returned +2.22% while SPY returned +21.37%. Year to date, FBND is down 0.08% versus a gain of 11.49% for SPY.

Over three years, FBND compounded at +4.67% per year against +20.76% for SPY; over five years the annualized figures are +0.33% and +12.94% respectively. Across the full 12-year window we track, SPY has the edge at +8.78% annualized vs +0.97%. 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 FBND. 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 -17.3% for FBND 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 0.51. They move independently enough that combining them can meaningfully diversify a portfolio.

Fees and Cost Over Time

FBND charges 0.36% per year while SPY charges 0.09%. On a $10,000 position that is $36 vs $9 annually, a gap of $27 per year that compounds over a long holding period. On income, FBND currently yields 5.07% against 1.01% for SPY.

Holdings Overlap

0.0%overlap

FBND and SPY share 1 holdings out of 543 unique holdings combined, representing a 0.0% weight overlap.

Moderate overlap means holding both could provide meaningful diversification benefits.

Top Shared Holdings

StockWeight in FBNDWeight in SPYDifference
SATS0.05%0.02%0.03%

Frequently Asked Questions

Which is cheaper, FBND or SPY?

FBND has an expense ratio of 0.36% while SPY charges 0.09%. SPY is the cheaper option. On a $10,000 investment, that is $27 per year of difference.

Which performed better, FBND or SPY?

Over the past year FBND returned +2.22% vs +21.37% for SPY, so SPY leads on 1-year performance. Over the longest common window we track (12 years), FBND annualized +0.97% vs +8.78% for SPY. Past performance does not guarantee future results.

Which is riskier, FBND or SPY?

SPY has been the more volatile fund at 15.3% annualized versus 5.0% for FBND. Worst drawdown: FBND -17.3% vs SPY -56.5%.

Should I hold both FBND and SPY?

FBND and SPY have a monthly-return correlation of 0.51, so combining them can provide real diversification depending on your allocation goals.

What is the holdings overlap between FBND and SPY?

FBND and SPY share 1 common holdings with a 0.0% weight overlap. Combined, they hold 543 unique securities.

Which pays a higher dividend, FBND or SPY?

FBND yields 5.07% while SPY yields 1.01%, so FBND currently pays the higher dividend yield.

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