BIT vs. SPY

Last updated Jun 3, 2026

BIT (BlackRock Multi-Sector Income Trust) is a stock, while SPY (State Street SPDR S&P 500 ETF) is S&P 500 fund tracking the S&P 500 Index. Over the past 10 years, BIT returned 7.37%/yr vs 15.57%/yr for SPY. At a 0.37 correlation, their price movements are largely independent.

Performance

BIT vs. SPY - Performance Comparison

The chart below illustrates the hypothetical performance of a $10,000 investment in BlackRock Multi-Sector Income Trust (BIT) and State Street SPDR S&P 500 ETF (SPY). The values are adjusted to include any dividend payments, if applicable.

Returns By Period

In the year-to-date period, BIT achieves a 1.54% return, which is significantly lower than SPY's 11.69% return. Over the past 10 years, BIT has underperformed SPY with an annualized return of 7.37%, while SPY has yielded a comparatively higher 15.57% annualized return.

BIT

• 1D: 0.40%
• 1M: -0.35%
• YTD: 1.54%
• 6M: 1.42%
• 1Y: 1.74%
• 3Y*: 6.92%
• 5Y*: 2.67%
• 10Y*: 7.37%

SPY

• 1D: 0.14%
• 1M: 5.40%
• YTD: 11.69%
• 6M: 12.09%
• 1Y: 29.62%
• 3Y*: 22.64%
• 5Y*: 14.20%
• 10Y*: 15.57%

*Multi-year figures are annualized to reflect compound growth (CAGR)

BIT vs. SPY - Yearly Performance Comparison

	2026 (YTD)	2025	2024	2023	2022	2021	2020	2019	2018	2017
BIT BlackRock Multi-Sector Income Trust	1.54%	2.31%	7.43%	16.78%	-14.41%	12.04%	19.67%	14.50%	-8.04%	19.97%
SPY State Street SPDR S&P 500 ETF	11.69%	17.72%	24.89%	26.18%	-18.18%	28.73%	18.33%	31.22%	-4.57%	21.71%

Correlation

The correlation between BIT and SPY is 0.50, which is low. Their price movements are largely independent, making them effective diversification partners.

	Correlation
Correlation (1Y) Calculated over the trailing 1-year period	0.50
Correlation (3Y) Calculated over the trailing 3-year period	0.42
Correlation (5Y) Calculated over the trailing 5-year period	0.45
Correlation (10Y) Calculated over the trailing 10-year period	0.40
Correlation (All Time) Calculated using the full available price history since Feb 27, 2013	0.37

The correlation between BIT and SPY shifts across timeframes, from 0.37 (all time) to 0.50 (1 year), reflecting how their relationship changes across market environments.

Return for Risk

BIT vs. SPY — Risk / Return Rank

Compare risk-adjusted metric ranks to identify better-performing investments over the past 12 months.

BIT

BIT Risk / Return Rank: 43
BIT Sharpe Ratio Rank: 49
BIT Sortino Ratio Rank: 37
BIT Omega Ratio Rank: 37
BIT Calmar Ratio Rank: 46
BIT Martin Ratio Rank: 45

SPY

SPY Risk / Return Rank: 75
SPY Sharpe Ratio Rank: 77
SPY Sortino Ratio Rank: 75
SPY Omega Ratio Rank: 76
SPY Calmar Ratio Rank: 68
SPY Martin Ratio Rank: 80

The rank (0–100) shows how this investment's returns compare to the risk taken. Higher = better. Based on the past 12 months of data, combining Sharpe, Sortino, and other metrics used by quantitative funds and institutional investors.

BIT vs. SPY - Risk-Adjusted Trends Comparison

This table presents a comparison of risk-adjusted performance metrics for BlackRock Multi-Sector Income Trust (BIT) and State Street SPDR S&P 500 ETF (SPY). Risk-adjusted metrics are performance indicators that assess an investment's returns in relation to its risk, enabling a more accurate comparison of different investment options.

	BIT	SPY	Difference
Sharpe ratio Return per unit of total volatility	0.22	2.52	-2.30
Sortino ratio Return per unit of downside risk	0.35	3.42	-3.06
Omega ratio Gain probability vs. loss probability	1.04	1.46	-0.41
Calmar ratio Return relative to maximum drawdown	0.23	3.42	-3.18
Martin ratio Return relative to average drawdown	0.45	15.93	-15.48
Data is calculated on a 1-year rolling basis and updated daily. The trend shows the change in the indicator over the past month.

BIT vs. SPY - Sharpe Ratio Comparison

The current BIT Sharpe Ratio is 0.22, which is lower than the SPY Sharpe Ratio of 2.52. The chart below compares the historical Sharpe Ratios of BIT and SPY, calculated using daily returns over the previous 12 months. A higher Sharpe Ratio indicates better risk-adjusted performance relative to the risk-free rate.

Sharpe Ratios by Period

	BIT	SPY	Difference
Sharpe Ratio (1Y) Calculated over the trailing 1-year period	0.22	2.52	-2.30
Sharpe Ratio (5Y) Calculated over the trailing 5-year period	0.22	0.84	-0.61
Sharpe Ratio (10Y) Calculated over the trailing 10-year period	0.46	0.87	-0.41
Sharpe Ratio (All Time) Calculated using the full available price history	0.41	0.59	-0.17

Drawdowns

BIT vs. SPY - Drawdown Comparison

The maximum BIT drawdown since its inception was -43.54%, smaller than the maximum SPY drawdown of -55.19%. Use the drawdown chart below to compare losses from any high point for BIT and SPY.

Drawdown Indicators

	BIT	SPY	Difference
Max Drawdown Largest peak-to-trough decline	-43.54%	-55.19%	+11.65%
Max Drawdown (1Y) Largest decline over 1 year	-8.99%	-8.88%	-0.11%
Max Drawdown (3Y) Largest decline over 3 years	-10.42%	-18.76%	+8.34%
Max Drawdown (5Y) Largest decline over 5 years	-23.72%	-24.50%	+0.78%
Max Drawdown (10Y) Largest decline over 10 years	-43.54%	-33.72%	-9.82%
Current Drawdown Current decline from peak	-4.08%	0.00%	-4.08%
Average Drawdown Average peak-to-trough decline	-4.87%	-9.05%	+4.18%
Ulcer Index Depth and duration of drawdowns from previous peaks	4.68%	1.91%	+2.77%

Volatility

BIT vs. SPY - Volatility Comparison

The current volatility for BlackRock Multi-Sector Income Trust (BIT) is 2.61%, while State Street SPDR S&P 500 ETF (SPY) has a volatility of 2.75%. This indicates that BIT experiences smaller price fluctuations and is considered to be less risky than SPY based on this measure. The chart below showcases a comparison of their rolling one-month volatility.

Volatility by Period

	BIT	SPY	Difference
Volatility (1M) Calculated over the trailing 1-month period	2.61%	2.75%	-0.14%
Volatility (6M) Calculated over the trailing 6-month period	5.77%	8.89%	-3.12%
Volatility (1Y) Calculated over the trailing 1-year period	7.99%	11.81%	-3.82%
Volatility (5Y) Calculated over the trailing 5-year period, annualized	12.04%	17.05%	-5.01%
Volatility (10Y) Calculated over the trailing 10-year period, annualized	16.00%	17.94%	-1.94%

Dividends

BIT vs. SPY - Dividend Comparison

BIT's dividend yield for the trailing twelve months is around 11.66%, more than SPY's 0.97% yield.

Position	TTM	2025	2024	2023	2022	2021	2020	2019	2018	2017	2016	2015
BIT BlackRock Multi-Sector Income Trust	11.66%	11.15%	10.17%	9.90%	9.58%	8.18%	8.46%	8.84%	9.12%	8.44%	11.65%	8.66%
SPY State Street SPDR S&P 500 ETF	0.97%	1.07%	1.21%	1.40%	1.65%	1.20%	1.52%	1.75%	2.04%	1.80%	2.03%	2.06%

Frequently Asked Questions

Can I hold both BIT and SPY in my portfolio?

BIT and SPY have a correlation of 0.50, meaning they provide meaningful diversification benefit when combined. Depending on your allocation goals, holding both could reduce overall portfolio risk.

Which is riskier, BIT or SPY?

SPY has higher volatility (2.75%) compared to BIT (2.61%). In terms of maximum drawdown, BIT dropped -43.54% vs SPY's -55.19%.

Which has better risk-adjusted returns?

SPY currently has the higher Sharpe Ratio (2.52 vs 0.22), meaning it's delivered slightly more return per unit of risk over the trailing 12 months. However, this ranking shifts over time - use the Risk/Return Score above for a more comprehensive view that combines Sharpe, Sortino, and other measures used by quantitative funds.