The SPDR S&P 500 ETF Trust (SPY) and the iShares Core Total USD Bond Market ETF (IUSB) are both among the Top 100 ETFs. SPY is a SPDR State Street Global Advisors Large Blend fund and IUSB is a iShares N/A fund. So, what’s the difference between SPY and IUSB? And which fund is better?
The expense ratio of SPY is 0.03 percentage points higher than IUSB’s (0.09% vs. 0.06%). SPY also has a high exposure to the technology sector while IUSB is mostly comprised of AAA bonds. Overall, SPY has provided higher returns than IUSB over the past ten years.
In this article, we’ll compare SPY vs. IUSB. We’ll look at performance and risk metrics, as well as at their portfolio growth and fund composition. Moreover, I’ll also discuss SPY’s and IUSB’s industry exposure, annual returns, and holdings and examine how these affect their overall returns.
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Summary
| SPY | IUSB | |
| Name | SPDR S&P 500 ETF Trust | iShares Core Total USD Bond Market ETF |
| Category | Large Blend | N/A |
| Issuer | SPDR State Street Global Advisors | iShares |
| AUM | 374.03B | 14.49B |
| Avg. Return | 14.41% | 4.13% |
| Div. Yield | 1.3% | 2.1% |
| Expense Ratio | 0.09% | 0.06% |
If you are also looking for SPY vs. IWR, You can check out all those details.
The SPDR S&P 500 ETF Trust (SPY) is a Large Blend fund that is issued by SPDR State Street Global Advisors. It currently has 374.03B total assets under management and has yielded an average annual return of 14.408181818181818% over the past 10 years. The fund has a dividend yield of 1.3% with an expense ratio of 0.09%.
The iShares Core Total USD Bond Market ETF (IUSB) is a N/A fund that is issued by iShares. It currently has 14.49B total assets under management and has yielded an average annual return of 4.128333333333334% over the past 10 years. The fund has a dividend yield of 2.1% with an expense ratio of 0.06%.
SPY’s dividend yield is 0.80% lower than that of IUSB (1.3% vs. 2.1%). Also, SPY yielded on average 10.28% more per year over the past decade (14.408181818181818% vs. 4.128333333333334%). The expense ratio of SPY is 0.03 percentage points higher than IUSB’s (0.09% vs. 0.06%).
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Fund Composition
Holdings
I have a comparison for SPY vs. EFA, You can check out all those details.
| SPY Holdings | Weight |
| Apple Inc | 5.9% |
| Microsoft Corp | 5.6% |
| Amazon.com Inc | 4.05% |
| Facebook Inc A | 2.29% |
| Alphabet Inc A | 2.02% |
| Alphabet Inc Class C | 1.96% |
| Berkshire Hathaway Inc Class B | 1.45% |
| Tesla Inc | 1.44% |
| NVIDIA Corp | 1.37% |
| JPMorgan Chase & Co | 1.29% |
SPY’s Top Holdings are Apple Inc, Microsoft Corp, Amazon.com Inc, Facebook Inc A, and Alphabet Inc A at 5.9%, 5.6%, 4.05%, 2.29%, and 2.02%.
Alphabet Inc Class C (1.96%), Berkshire Hathaway Inc Class B (1.45%), and Tesla Inc (1.44%) have a slightly smaller but still significant weight. NVIDIA Corp and JPMorgan Chase & Co are also represented in the SPY’s holdings at 1.37% and 1.29%.
| IUSB Bond Sectors | Weight |
| AAA | 58.32% |
| BBB | 16.98% |
| A | 12.27% |
| BB | 4.33% |
| AA | 3.36% |
| B | 2.8% |
| Others | 1.01% |
| Below B | 0.92% |
| US Government | 0.0% |
IUSB’s Top Bond Sectors are ratings of AAA, BBB, A, BB, and AA at 58.32%, 16.98%, 12.27%, 4.33%, and 3.36%. The fund is less weighted towards B (2.8%), Others (1.01%), and Below B (0.92%) rated bonds.
Risk Analysis
| SPY | IUSB | |
| Mean Return | 1.23 | 0 |
| R-squared | 100 | 0 |
| Std. Deviation | 13.56 | 0 |
| Alpha | -0.09 | 0 |
| Beta | 1 | 0 |
| Sharpe Ratio | 1.04 | 0 |
| Treynor Ratio | 14.12 | 0 |
The SPDR S&P 500 ETF Trust (SPY) has a Treynor Ratio of 14.12 with a Standard Deviation of 13.56 and a R-squared of 100. Its Mean Return is 1.23 while SPY’s Beta is 1. Furthermore, the fund has a Alpha of -0.09 and a Sharpe Ratio of 1.04.
A pretty close comparison I have also cover is SPY vs. VXUS.
The iShares Core Total USD Bond Market ETF (IUSB) has a Standard Deviation of 0 with a Beta of 0 and a Treynor Ratio of 0. Its R-squared is 0 while IUSB’s Mean Return is 0. Furthermore, the fund has a Sharpe Ratio of 0 and a Alpha of 0.
SPY’s Mean Return is 1.23 points higher than that of IUSB and its R-squared is 100.00 points higher. With a Standard Deviation of 13.56, SPY is slightly more volatile than IUSB. The Alpha and Beta of SPY are 0.09 points lower and 1.00 points higher than IUSB’s Alpha and Beta.
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Performance
Annual Returns
| Year | SPY | IUSB |
| 2020 | 18.25% | 7.59% |
| 2019 | 31.29% | 9.26% |
| 2018 | -4.45% | -0.38% |
| 2017 | 21.69% | 4.06% |
| 2016 | 11.8% | 3.78% |
| 2015 | 1.34% | 0.46% |
| 2014 | 13.53% | 0.0% |
| 2013 | 32.21% | 0.0% |
| 2012 | 15.84% | 0.0% |
| 2011 | 2.06% | 0.0% |
| 2010 | 14.93% | 0.0% |
SPY had its best year in 2013 with an annual return of 32.21%. SPY’s worst year over the past decade yielded -4.45% and occurred in 2018. In most years the SPDR S&P 500 ETF Trust provided moderate returns such as in 2014, 2010, and 2012 where annual returns amounted to 13.53%, 14.93%, and 15.84% respectively.
If you need another SPY comparison I have one SPY vs. DIA right here.
The year 2019 was the strongest year for IUSB, returning 9.26% on an annual basis. The poorest year for IUSB in the last ten years was 2018, with a yield of -0.38%. Most years the iShares Core Total USD Bond Market ETF has given investors modest returns, such as in 2011, 2010, and 2015, when gains were 0.0%, 0.0%, and 0.46% respectively.
Portfolio Growth
| Fund | Initial Balance | Final Balance | CAGR |
| SPY | $10,000 | $41,712 | 14.41% |
| IUSB | $10,000 | $12,704 | 2.25% |
A $10,000 investment in SPY would have resulted in a final balance of $41,712. This is a profit of $31,712 over 10 years and amounts to a compound annual growth rate (CAGR) of 14.41%.
If you need more comparisons to read try SPY vs. MBB.
With a $10,000 investment in IUSB, the end total would have been $12,704. This equates to a $2,704 profit over ten years and a compound annual growth rate (CAGR) of 4.13%.
SPY’s CAGR is 12.16 percentage points higher than that of IUSB and as a result, would have yielded $29,008 more on a $10,000 investment. Thus, SPY outperformed IUSB by 12.16% annually.
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