SPY vs USTB
SPY vs USTB
State Street SPDR S&P 500 ETF Trust vs VictoryShares Short-Term Bond ETF
Quick Verdict
SPY has a lower expense ratio. SPY delivered stronger 1-year returns. USTB offers more diversification with 742 holdings.
Side-by-Side Comparison
| Metric | SPY | USTB | Winner |
|---|---|---|---|
| Expense Ratio | 0.09% | 0.34% | |
| AUM | $789.1B | $2.3B | |
| Dividend Yield | 1.01% | 4.58% | |
| Holdings | 505 | 922 | |
| YTD Return | +13.50% | +1.80% | |
| 1Y Return | +23.56% | +3.93% | |
| 3Y Return (annualized) | +21.17% | +5.86% | |
| 5Y Return (annualized) | +13.46% | +3.56% | |
| Volatility (annualized) | 15.3% | 2.4% | |
| Max Drawdown | -56.5% | -5.5% | |
| Fund Family | State Street Investment Management | Victory Capital Management Inc. | |
| Category | Equity | Fixed Income | |
| Inception | Jan 22, 1993 | Oct 24, 2017 |
SPY vs USTB Performance
State Street SPDR S&P 500 ETF Trust (SPY) is a ETF from State Street Investment Management and VictoryShares Short-Term Bond ETF (USTB) is a ETF from Victory Capital Management Inc.. Over the past year SPY returned +23.56% while USTB returned +3.93%. Year to date, SPY is up 13.50% versus a gain of 1.80% for USTB.
Over three years, SPY compounded at +21.17% per year against +5.86% for USTB; over five years the annualized figures are +13.46% and +3.56% respectively. Across the full 9-year window we track, SPY has the edge at +8.85% annualized vs +2.51%. 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 2.4% for USTB. 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 -5.5% for USTB. 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 0.53. They move independently enough that combining them can meaningfully diversify a portfolio.
Fees and Cost Over Time
SPY charges 0.09% per year while USTB charges 0.34%. On a $10,000 position that is $9 vs $34 annually, a gap of $25 per year that compounds over a long holding period. On income, SPY currently yields 1.01% against 4.58% for USTB.
Holdings Overlap
SPY and USTB share 0 holdings out of 1245 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, SPY or USTB?
SPY has an expense ratio of 0.09% while USTB charges 0.34%. SPY is the cheaper option. On a $10,000 investment, that is $25 per year of difference.
Which performed better, SPY or USTB?
Over the past year SPY returned +23.56% vs +3.93% for USTB, so SPY leads on 1-year performance. Over the longest common window we track (9 years), SPY annualized +8.85% vs +2.51% for USTB. Past performance does not guarantee future results.
Which is riskier, SPY or USTB?
SPY has been the more volatile fund at 15.3% annualized versus 2.4% for USTB. Worst drawdown: SPY -56.5% vs USTB -5.5%.
Should I hold both SPY and USTB?
SPY and USTB have a monthly-return correlation of 0.53, so combining them can provide real diversification depending on your allocation goals.
What is the holdings overlap between SPY and USTB?
SPY and USTB share 0 common holdings with a 0.0% weight overlap. Combined, they hold 1245 unique securities.
Which pays a higher dividend, SPY or USTB?
SPY yields 1.01% while USTB yields 4.58%, so USTB currently pays the higher dividend yield.
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