SPY vs USIG
SPY vs USIG
State Street SPDR S&P 500 ETF Trust vs iShares Broad USD Investment Grade Corporate Bond ETF
Quick Verdict
USIG has a lower expense ratio. SPY delivered stronger 1-year returns. USIG offers more diversification with 9966 holdings.
Side-by-Side Comparison
| Metric | SPY | USIG | Winner |
|---|---|---|---|
| Expense Ratio | 0.09% | 0.04% | |
| AUM | $789.1B | $17.3B | |
| Dividend Yield | 1.01% | 4.72% | |
| Holdings | 505 | 11,462 | |
| YTD Return | +13.79% | -0.31% | |
| 1Y Return | +23.66% | +2.15% | |
| 3Y Return (annualized) | +21.40% | +5.19% | |
| 5Y Return (annualized) | +13.37% | +0.23% | |
| Volatility (annualized) | 15.3% | 7.4% | |
| Max Drawdown | -56.5% | -21.6% | |
| Fund Family | State Street Investment Management | iShares by BlackRock (US) | |
| Category | Equity | Fixed Income | |
| Inception | Jan 22, 1993 | Jan 5, 2007 |
SPY vs USIG Performance
State Street SPDR S&P 500 ETF Trust (SPY) is a ETF from State Street Investment Management and iShares Broad USD Investment Grade Corporate Bond ETF (USIG) is a ETF from iShares by BlackRock (US). Over the past year SPY returned +23.66% while USIG returned +2.15%. Year to date, SPY is up 13.79% versus a loss of 0.31% for USIG.
Over three years, SPY compounded at +21.40% per year against +5.19% for USIG; over five years the annualized figures are +13.37% and +0.23% respectively. Across the full 8-year window we track, SPY has the edge at +8.85% annualized vs +1.83%. 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 7.4% for USIG. 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 -56.5% for SPY and -21.6% for USIG. 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 0.63. They move independently enough that combining them can meaningfully diversify a portfolio.
Fees and Cost Over Time
SPY charges 0.09% per year while USIG charges 0.04%. On a $10,000 position that is $9 vs $4 annually, a gap of $5 per year that compounds over a long holding period. On income, SPY currently yields 1.01% against 4.72% for USIG.
Holdings Overlap
SPY and USIG share 8 holdings out of 10461 unique holdings combined, representing a 0.1% weight overlap.
Moderate overlap means holding both could provide meaningful diversification benefits.
Top Shared Holdings
| Stock | Weight in SPY | Weight in USIG | Difference |
|---|---|---|---|
| LRCX | 0.68% | 0.00% | 0.68% |
| GE | 0.61% | 0.01% | 0.60% |
| DUK | 0.15% | 0.01% | 0.14% |
| AON | Pro | Pro | Pro |
| KDP | Pro | Pro | Pro |
| ADM | Pro | Pro | Pro |
| HUBB | Pro | Pro | Pro |
| CNP | Pro | Pro | Pro |
See all 8 holdings SPY shares with USIG Exact weights in each fund and the difference, for every overlapping position. Get FundXLS Pro: $29/moFirst 500 subscribers, then $49/mo. Cancel anytime. | |||
Frequently Asked Questions
Which is cheaper, SPY or USIG?
SPY has an expense ratio of 0.09% while USIG charges 0.04%. USIG is the cheaper option. On a $10,000 investment, that is $5 per year of difference.
Which performed better, SPY or USIG?
Over the past year SPY returned +23.66% vs +2.15% for USIG, so SPY leads on 1-year performance. Over the longest common window we track (8 years), SPY annualized +8.85% vs +1.83% for USIG. Past performance does not guarantee future results.
Which is riskier, SPY or USIG?
SPY has been the more volatile fund at 15.3% annualized versus 7.4% for USIG. Worst drawdown: SPY -56.5% vs USIG -21.6%.
Should I hold both SPY and USIG?
SPY and USIG have a monthly-return correlation of 0.63, so combining them can provide real diversification depending on your allocation goals.
What is the holdings overlap between SPY and USIG?
SPY and USIG share 8 common holdings with a 0.1% weight overlap. Combined, they hold 10461 unique securities.
Which pays a higher dividend, SPY or USIG?
SPY yields 1.01% while USIG yields 4.72%, so USIG currently pays the higher dividend yield.
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