IYF 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

MetricIYFSPYWinner
Expense Ratio0.38%0.09%
AUM$4.6B$789.1B
Dividend Yield1.50%1.01%
Holdings147505
YTD Return+5.67%+11.49%
1Y Return+14.01%+21.37%
3Y Return (annualized)+21.93%+20.76%
5Y Return (annualized)+12.32%+12.94%
Volatility (annualized)19.3%15.3%
Max Drawdown-80.2%-56.5%
Fund FamilyiShares by BlackRock (US)State Street Investment Management
CategoryEquityEquity
InceptionMay 22, 2000Jan 22, 1993

IYF vs SPY Performance

iShares US Financials ETF (IYF) 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 IYF returned +14.01% while SPY returned +21.37%. Year to date, IYF is up 5.67% versus a gain of 11.49% for SPY.

Over three years, IYF compounded at +21.93% per year against +20.76% for SPY; over five years the annualized figures are +12.32% and +12.94% respectively. Across the full 26-year window we track, SPY has the edge at +8.78% annualized vs +5.47%. Past performance does not guarantee future results.

Risk: Volatility and Drawdowns

IYF has been the more volatile fund, with annualized monthly volatility of 19.3% compared with 15.3% for SPY. 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 -80.2% for IYF 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 0.85. They usually move together, but the gap leaves some room for diversification.

Fees and Cost Over Time

IYF charges 0.38% per year while SPY charges 0.09%. On a $10,000 position that is $38 vs $9 annually, a gap of $29 per year that compounds over a long holding period. On income, IYF currently yields 1.50% against 1.01% for SPY.

Holdings Overlap

8.2%overlap

IYF and SPY share 61 holdings out of 585 unique holdings combined, representing a 8.2% weight overlap.

Moderate overlap means holding both could provide meaningful diversification benefits.

Top Shared Holdings

StockWeight in IYFWeight in SPYDifference
JPM10.86%1.40%9.46%
BAC4.60%0.60%4.00%
GS3.88%0.48%3.40%
WFCProProPro
MSProProPro
CProProPro
SCHWProProPro
BLKProProPro
PGRProProPro
SPGIProProPro
See all 10 holdings IYF shares with SPY
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Frequently Asked Questions

Which is cheaper, IYF or SPY?

IYF has an expense ratio of 0.38% while SPY charges 0.09%. SPY is the cheaper option. On a $10,000 investment, that is $29 per year of difference.

Which performed better, IYF or SPY?

Over the past year IYF returned +14.01% vs +21.37% for SPY, so SPY leads on 1-year performance. Over the longest common window we track (26 years), IYF annualized +5.47% vs +8.78% for SPY. Past performance does not guarantee future results.

Which is riskier, IYF or SPY?

IYF has been the more volatile fund at 19.3% annualized versus 15.3% for SPY. Worst drawdown: IYF -80.2% vs SPY -56.5%.

Should I hold both IYF and SPY?

IYF and SPY have a monthly-return correlation of 0.85, so combining them can provide real diversification depending on your allocation goals.

What is the holdings overlap between IYF and SPY?

IYF and SPY share 61 common holdings with a 8.2% weight overlap. Combined, they hold 585 unique securities.

Which pays a higher dividend, IYF or SPY?

IYF yields 1.50% while SPY yields 1.01%, so IYF currently pays the higher dividend yield.

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