IUSB vs SPY
IUSB vs SPY
iShares Core Universal USD Bond ETF vs State Street SPDR S&P 500 ETF Trust
Quick Verdict
IUSB has a lower expense ratio. SPY delivered stronger 1-year returns. IUSB offers more diversification with 9319 holdings.
Side-by-Side Comparison
| Metric | IUSB | SPY | Winner |
|---|---|---|---|
| Expense Ratio | 0.06% | 0.09% | |
| AUM | $43.1B | $789.1B | |
| Dividend Yield | 4.20% | 1.01% | |
| Holdings | 17,578 | 505 | |
| YTD Return | -0.04% | +13.50% | |
| 1Y Return | +2.41% | +23.56% | |
| 3Y Return (annualized) | +4.59% | +21.17% | |
| 5Y Return (annualized) | -0.01% | +13.46% | |
| Volatility (annualized) | 4.8% | 15.3% | |
| Max Drawdown | -50.2% | -56.5% | |
| Fund Family | iShares by BlackRock (US) | State Street Investment Management | |
| Category | Fixed Income | Equity | |
| Inception | Jun 10, 2014 | Jan 22, 1993 |
IUSB vs SPY Performance
iShares Core Universal USD Bond ETF (IUSB) 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 IUSB returned +2.41% while SPY returned +23.56%. Year to date, IUSB is down 0.04% versus a gain of 13.50% for SPY.
Over three years, IUSB compounded at +4.59% per year against +21.17% for SPY; over five years the annualized figures are -0.01% and +13.46% respectively. Across the full 12-year window we track, SPY has the edge at +8.85% annualized vs +0.69%. 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 4.8% for IUSB. 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 -50.2% for IUSB 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
IUSB charges 0.06% per year while SPY charges 0.09%. On a $10,000 position that is $6 vs $9 annually, a gap of $3 per year that compounds over a long holding period. On income, IUSB currently yields 4.20% against 1.01% for SPY.
Holdings Overlap
IUSB and SPY share 4 holdings out of 9818 unique holdings combined, representing a 0.0% weight overlap.
Moderate overlap means holding both could provide meaningful diversification benefits.
Top Shared Holdings
Frequently Asked Questions
Which is cheaper, IUSB or SPY?
IUSB has an expense ratio of 0.06% while SPY charges 0.09%. IUSB is the cheaper option. On a $10,000 investment, that is $3 per year of difference.
Which performed better, IUSB or SPY?
Over the past year IUSB returned +2.41% vs +23.56% for SPY, so SPY leads on 1-year performance. Over the longest common window we track (12 years), IUSB annualized +0.69% vs +8.85% for SPY. Past performance does not guarantee future results.
Which is riskier, IUSB or SPY?
SPY has been the more volatile fund at 15.3% annualized versus 4.8% for IUSB. Worst drawdown: IUSB -50.2% vs SPY -56.5%.
Should I hold both IUSB and SPY?
IUSB 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 IUSB and SPY?
IUSB and SPY share 4 common holdings with a 0.0% weight overlap. Combined, they hold 9818 unique securities.
Which pays a higher dividend, IUSB or SPY?
IUSB yields 4.20% while SPY yields 1.01%, so IUSB currently pays the higher dividend yield.
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