ITDG vs SPY

Quick Verdict

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

Lower Fees: SPYHigher Returns: ITDGMore Diversified: SPY

Side-by-Side Comparison

MetricITDGSPYWinner
Expense Ratio0.12%0.09%
AUM$56M$789.1B
Dividend Yield1.43%1.01%
Holdings8505
YTD Return+14.27%+13.79%
1Y Return+25.23%+23.66%
3Y Return (annualized)-+21.40%
5Y Return (annualized)-+13.37%
Volatility (annualized)11.6%15.3%
Max Drawdown-16.6%-56.5%
Fund FamilyiShares by BlackRock (US)State Street Investment Management
CategoryAllocation/BalancedEquity
InceptionOct 17, 2023Jan 22, 1993

ITDG vs SPY Performance

iShares LifePath Target Date 2055 ETF (ITDG) 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 ITDG returned +25.23% while SPY returned +23.66%. Year to date, ITDG is up 14.27% versus a gain of 13.79% for SPY.

Risk: Volatility and Drawdowns

SPY has been the more volatile fund, with annualized monthly volatility of 15.3% compared with 11.6% for ITDG. 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 -16.6% for ITDG 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 0.95. They move almost in lockstep, so holding both mostly duplicates the same exposure.

Fees and Cost Over Time

ITDG charges 0.12% per year while SPY charges 0.09%. On a $10,000 position that is $12 vs $9 annually, a gap of $3 per year that compounds over a long holding period. On income, ITDG currently yields 1.43% against 1.01% for SPY.

Holdings Overlap

0.0%overlap

ITDG and SPY share 0 holdings out of 510 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, ITDG or SPY?

ITDG has an expense ratio of 0.12% while SPY charges 0.09%. SPY is the cheaper option. On a $10,000 investment, that is $3 per year of difference.

Which performed better, ITDG or SPY?

Over the past year ITDG returned +25.23% vs +23.66% for SPY, so ITDG leads on 1-year performance. Over the longest common window we track (3 years), ITDG annualized +24.39% vs +8.85% for SPY. Past performance does not guarantee future results.

Which is riskier, ITDG or SPY?

SPY has been the more volatile fund at 15.3% annualized versus 11.6% for ITDG. Worst drawdown: ITDG -16.6% vs SPY -56.5%.

Should I hold both ITDG and SPY?

ITDG and SPY have a monthly-return correlation of 0.95, so they move almost identically. Holding both adds little diversification - most investors pick one, usually on fees or the specific index tracked.

What is the holdings overlap between ITDG and SPY?

ITDG and SPY share 0 common holdings with a 0.0% weight overlap. Combined, they hold 510 unique securities.

Which pays a higher dividend, ITDG or SPY?

ITDG yields 1.43% while SPY yields 1.01%, so ITDG currently pays the higher dividend yield.

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