IBHK vs SPY
IBHK vs SPY
iShares iBonds 2031 Term High Yield and 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 | IBHK | SPY | Winner |
|---|---|---|---|
| Expense Ratio | 0.35% | 0.09% | |
| AUM | $71M | $789.1B | |
| Dividend Yield | 6.47% | 1.01% | |
| Holdings | 283 | 505 | |
| YTD Return | -1.74% | +11.49% | |
| 1Y Return | +0.73% | +21.37% | |
| 3Y Return (annualized) | - | +20.76% | |
| 5Y Return (annualized) | - | +12.94% | |
| Volatility (annualized) | 4.0% | 15.3% | |
| Max Drawdown | -4.8% | -56.5% | |
| Fund Family | iShares by BlackRock (US) | State Street Investment Management | |
| Category | Fixed Income | Equity | |
| Inception | May 22, 2024 | Jan 22, 1993 |
IBHK vs SPY Performance
iShares iBonds 2031 Term High Yield and Income ETF (IBHK) is a ETF from iShares by BlackRock (US) and State Street SPDR S&P 500 ETF Trust (SPY) is a ETF from State Street Investment Management. Over the past year IBHK returned +0.73% while SPY returned +21.37%. Year to date, IBHK is down 1.74% versus a gain of 11.49% for SPY.
Risk: Volatility and Drawdowns
SPY has been the more volatile fund, with annualized monthly volatility of 15.3% compared with 4.0% for IBHK. 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 -4.8% for IBHK 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 0.68. They move independently enough that combining them can meaningfully diversify a portfolio.
Fees and Cost Over Time
IBHK charges 0.35% per year while SPY charges 0.09%. On a $10,000 position that is $35 vs $9 annually, a gap of $26 per year that compounds over a long holding period. On income, IBHK currently yields 6.47% against 1.01% for SPY.
Holdings Overlap
IBHK and SPY share 0 holdings out of 689 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, IBHK or SPY?
IBHK has an expense ratio of 0.35% while SPY charges 0.09%. SPY is the cheaper option. On a $10,000 investment, that is $26 per year of difference.
Which performed better, IBHK or SPY?
Over the past year IBHK returned +0.73% vs +21.37% for SPY, so SPY leads on 1-year performance. Over the longest common window we track (2 years), IBHK annualized +5.30% vs +8.78% for SPY. Past performance does not guarantee future results.
Which is riskier, IBHK or SPY?
SPY has been the more volatile fund at 15.3% annualized versus 4.0% for IBHK. Worst drawdown: IBHK -4.8% vs SPY -56.5%.
Should I hold both IBHK and SPY?
IBHK and SPY have a monthly-return correlation of 0.68, so combining them can provide real diversification depending on your allocation goals.
What is the holdings overlap between IBHK and SPY?
IBHK and SPY share 0 common holdings with a 0.0% weight overlap. Combined, they hold 689 unique securities.
Which pays a higher dividend, IBHK or SPY?
IBHK yields 6.47% while SPY yields 1.01%, so IBHK currently pays the higher dividend yield.
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