SPAB vs SPY
SPAB vs SPY
State Street SPDR Portfolio Aggregate Bond ETF vs State Street SPDR S&P 500 ETF Trust
Quick Verdict
SPAB has a lower expense ratio. SPY delivered stronger 1-year returns. SPAB offers more diversification with 1516 holdings.
Side-by-Side Comparison
| Metric | SPAB | SPY | Winner |
|---|---|---|---|
| Expense Ratio | 0.03% | 0.09% | |
| AUM | $9.8B | $789.1B | |
| Dividend Yield | 4.03% | 1.01% | |
| Holdings | 8,145 | 505 | |
| YTD Return | -0.27% | +13.50% | |
| 1Y Return | +2.00% | +23.56% | |
| 3Y Return (annualized) | +4.10% | +21.17% | |
| 5Y Return (annualized) | -0.43% | +13.46% | |
| Volatility (annualized) | 4.4% | 15.3% | |
| Max Drawdown | -19.5% | -56.5% | |
| Fund Family | State Street Investment Management | State Street Investment Management | |
| Category | Fixed Income | Equity | |
| Inception | May 23, 2007 | Jan 22, 1993 |
SPAB vs SPY Performance
State Street SPDR Portfolio Aggregate Bond ETF (SPAB) is a ETF from State Street Investment Management and State Street SPDR S&P 500 ETF Trust (SPY) is a ETF from State Street Investment Management. Over the past year SPAB returned +2.00% while SPY returned +23.56%. Year to date, SPAB is down 0.27% versus a gain of 13.50% for SPY.
Over three years, SPAB compounded at +4.10% per year against +21.17% for SPY; over five years the annualized figures are -0.43% and +13.46% respectively. Across the full 19-year window we track, SPY has the edge at +8.85% annualized vs +0.70%. 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 4.4% for SPAB. 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 -19.5% for SPAB 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 0.23. They move independently enough that combining them can meaningfully diversify a portfolio.
Fees and Cost Over Time
SPAB charges 0.03% per year while SPY charges 0.09%. On a $10,000 position that is $3 vs $9 annually, a gap of $6 per year that compounds over a long holding period. On income, SPAB currently yields 4.03% against 1.01% for SPY.
Holdings Overlap
SPAB and SPY share 3 holdings out of 2016 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, SPAB or SPY?
SPAB has an expense ratio of 0.03% while SPY charges 0.09%. SPAB is the cheaper option. On a $10,000 investment, that is $6 per year of difference.
Which performed better, SPAB or SPY?
Over the past year SPAB returned +2.00% vs +23.56% for SPY, so SPY leads on 1-year performance. Over the longest common window we track (19 years), SPAB annualized +0.70% vs +8.85% for SPY. Past performance does not guarantee future results.
Which is riskier, SPAB or SPY?
SPY has been the more volatile fund at 15.3% annualized versus 4.4% for SPAB. Worst drawdown: SPAB -19.5% vs SPY -56.5%.
Should I hold both SPAB and SPY?
SPAB and SPY have a monthly-return correlation of 0.23, so combining them can provide real diversification depending on your allocation goals.
What is the holdings overlap between SPAB and SPY?
SPAB and SPY share 3 common holdings with a 0.0% weight overlap. Combined, they hold 2016 unique securities.
Which pays a higher dividend, SPAB or SPY?
SPAB yields 4.03% while SPY yields 1.01%, so SPAB currently pays the higher dividend yield.
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