SPY vs XBB
SPY vs XBB
State Street SPDR S&P 500 ETF Trust vs BondBloxx BB Rated USD High Yield Corporate Bond ETF
Quick Verdict
SPY has a lower expense ratio. SPY delivered stronger 1-year returns. XBB offers more diversification with 790 holdings.
Side-by-Side Comparison
| Metric | SPY | XBB | Winner |
|---|---|---|---|
| Expense Ratio | 0.09% | 0.20% | |
| AUM | $789.1B | $531M | |
| Dividend Yield | 1.01% | 5.57% | |
| Holdings | 505 | 1,081 | |
| YTD Return | +9.93% | +1.22% | |
| 1Y Return | +19.50% | +4.77% | |
| 3Y Return (annualized) | +19.33% | +7.40% | |
| 5Y Return (annualized) | +12.82% | - | |
| Volatility (annualized) | 15.3% | 7.4% | |
| Max Drawdown | -56.5% | -8.9% | |
| Fund Family | State Street Investment Management | BondBloxx | |
| Category | Equity | Fixed Income | |
| Inception | Jan 22, 1993 | May 24, 2022 |
SPY vs XBB Performance
State Street SPDR S&P 500 ETF Trust (SPY) is a ETF from State Street Investment Management and BondBloxx BB Rated USD High Yield Corporate Bond ETF (XBB) is a ETF from BondBloxx. Over the past year SPY returned +19.50% while XBB returned +4.77%. Year to date, SPY is up 9.93% versus a gain of 1.22% for XBB.
Over three years, SPY compounded at +19.33% per year against +7.40% for XBB. Across the full 4-year window we track, SPY has the edge at +8.74% annualized vs +5.43%. 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 XBB. 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 -8.9% for XBB. 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 0.83. They usually move together, but the gap leaves some room for diversification.
Fees and Cost Over Time
SPY charges 0.09% per year while XBB charges 0.20%. On a $10,000 position that is $9 vs $20 annually, a gap of $11 per year that compounds over a long holding period. On income, SPY currently yields 1.01% against 5.57% for XBB.
Holdings Overlap
SPY and XBB share 0 holdings out of 1293 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 XBB?
SPY has an expense ratio of 0.09% while XBB charges 0.20%. SPY is the cheaper option. On a $10,000 investment, that is $11 per year of difference.
Which performed better, SPY or XBB?
Over the past year SPY returned +19.50% vs +4.77% for XBB, so SPY leads on 1-year performance. Over the longest common window we track (4 years), SPY annualized +8.74% vs +5.43% for XBB. Past performance does not guarantee future results.
Which is riskier, SPY or XBB?
SPY has been the more volatile fund at 15.3% annualized versus 7.4% for XBB. Worst drawdown: SPY -56.5% vs XBB -8.9%.
Should I hold both SPY and XBB?
SPY and XBB have a monthly-return correlation of 0.83, so combining them can provide real diversification depending on your allocation goals.
What is the holdings overlap between SPY and XBB?
SPY and XBB share 0 common holdings with a 0.0% weight overlap. Combined, they hold 1293 unique securities.
Which pays a higher dividend, SPY or XBB?
SPY yields 1.01% while XBB yields 5.57%, so XBB currently pays the higher dividend yield.
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