SPBO vs SPY

Quick Verdict

SPBO has a lower expense ratio. SPY delivered stronger 1-year returns. SPBO offers more diversification with 954 holdings.

Lower Fees: SPBOHigher Returns: SPYMore Diversified: SPBO

Side-by-Side Comparison

MetricSPBOSPYWinner
Expense Ratio0.03%0.09%
AUM$2.1B$789.1B
Dividend Yield5.10%1.01%
Holdings4,021505
YTD Return-0.31%+13.79%
1Y Return+2.12%+23.66%
3Y Return (annualized)+5.05%+21.40%
5Y Return (annualized)+0.02%+13.37%
Volatility (annualized)6.1%15.3%
Max Drawdown-22.4%-56.5%
Fund FamilyState Street Investment ManagementState Street Investment Management
CategoryFixed IncomeEquity
InceptionApr 6, 2011Jan 22, 1993

SPBO vs SPY Performance

State Street SPDR Portfolio Corporate Bond ETF (SPBO) 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 SPBO returned +2.12% while SPY returned +23.66%. Year to date, SPBO is down 0.31% versus a gain of 13.79% for SPY.

Over three years, SPBO compounded at +5.05% per year against +21.40% for SPY; over five years the annualized figures are +0.02% and +13.37% respectively. Across the full 15-year window we track, SPY has the edge at +8.85% annualized vs +1.11%. 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 6.1% for SPBO. 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 -22.4% for SPBO 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 0.50. They move independently enough that combining them can meaningfully diversify a portfolio.

Fees and Cost Over Time

SPBO 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, SPBO currently yields 5.10% against 1.01% for SPY.

Holdings Overlap

0.0%overlap

SPBO and SPY share 2 holdings out of 1455 unique holdings combined, representing a 0.0% weight overlap.

Moderate overlap means holding both could provide meaningful diversification benefits.

Top Shared Holdings

StockWeight in SPBOWeight in SPYDifference
GE0.01%0.61%0.60%
DUK0.00%0.15%0.15%

Frequently Asked Questions

Which is cheaper, SPBO or SPY?

SPBO has an expense ratio of 0.03% while SPY charges 0.09%. SPBO is the cheaper option. On a $10,000 investment, that is $6 per year of difference.

Which performed better, SPBO or SPY?

Over the past year SPBO returned +2.12% vs +23.66% for SPY, so SPY leads on 1-year performance. Over the longest common window we track (15 years), SPBO annualized +1.11% vs +8.85% for SPY. Past performance does not guarantee future results.

Which is riskier, SPBO or SPY?

SPY has been the more volatile fund at 15.3% annualized versus 6.1% for SPBO. Worst drawdown: SPBO -22.4% vs SPY -56.5%.

Should I hold both SPBO and SPY?

SPBO and SPY have a monthly-return correlation of 0.50, so combining them can provide real diversification depending on your allocation goals.

What is the holdings overlap between SPBO and SPY?

SPBO and SPY share 2 common holdings with a 0.0% weight overlap. Combined, they hold 1455 unique securities.

Which pays a higher dividend, SPBO or SPY?

SPBO yields 5.10% while SPY yields 1.01%, so SPBO currently pays the higher dividend yield.

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