GOVZ vs. SPY
GOVZ (iShares 25+ Year Treasury STRIPS Bond ETF) and SPY (State Street SPDR S&P 500 ETF) are both exchange-traded funds - GOVZ is a Government Bonds fund tracking the ICE BofA Long US Treasury Principal STRIPS Index, while SPY is a S&P 500 fund tracking the S&P 500 Index. Both are passively managed. Over the past 5 years, GOVZ returned -11.86%/yr vs 13.74%/yr for SPY. At a 0.05 correlation, their price movements are largely independent. GOVZ charges 0.15%/yr vs 0.09%/yr for SPY.
Performance
GOVZ vs. SPY - Performance Comparison
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Returns By Period
In the year-to-date period, GOVZ achieves a 0.80% return, which is significantly lower than SPY's 10.33% return.
GOVZ
- 1D
- 0.97%
- 1M
- 5.93%
- YTD
- 0.80%
- 6M
- -0.24%
- 1Y
- 5.04%
- 3Y*
- -7.39%
- 5Y*
- -11.86%
- 10Y*
- —
SPY
- 1D
- -0.60%
- 1M
- 1.51%
- YTD
- 10.33%
- 6M
- 11.16%
- 1Y
- 25.93%
- 3Y*
- 20.91%
- 5Y*
- 13.74%
- 10Y*
- 15.58%
GOVZ vs. SPY - Yearly Performance Comparison
| 2026 (YTD) | 2025 | 2024 | 2023 | 2022 | 2021 | 2020 | |
|---|---|---|---|---|---|---|---|
GOVZ iShares 25+ Year Treasury STRIPS Bond ETF | 0.80% | -1.81% | -16.24% | 0.90% | -41.03% | -4.86% | -5.61% |
SPY State Street SPDR S&P 500 ETF | 10.33% | 17.72% | 24.89% | 26.18% | -18.18% | 28.73% | 16.38% |
Correlation
The correlation between GOVZ and SPY is 0.18, which is low. Their price movements are largely independent, making them effective diversification partners.
| Correlation | |
|---|---|
Correlation (1Y) Calculated over the trailing 1-year period | 0.18 |
Correlation (3Y) Calculated over the trailing 3-year period | 0.17 |
Correlation (5Y) Calculated over the trailing 5-year period | 0.06 |
Correlation (All Time) Calculated using the full available price history since Sep 24, 2020 | 0.05 |
The correlation between GOVZ and SPY shifts across timeframes, from 0.05 (all time) to 0.18 (1 year), reflecting how their relationship changes across market environments.
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Return for Risk
GOVZ vs. SPY — Risk / Return Rank
GOVZ
SPY
GOVZ vs. SPY - Risk-Adjusted Trends Comparison
This table presents a comparison of risk-adjusted performance metrics for iShares 25+ Year Treasury STRIPS Bond ETF (GOVZ) 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.
Values are calculated on a 1-year rolling basis and updated daily. Risk-adjusted metrics are more stable over longer periods — use the period switch above to explore them.
| GOVZ | SPY | Difference | |
|---|---|---|---|
| Sharpe ratioReturn per unit of total volatility | -1.79 | ||
| Sortino ratioReturn per unit of downside risk | -2.28 | ||
| Omega ratioGain probability vs. loss probability | 1.06 | 1.38 | -0.32 |
| Calmar ratioReturn relative to maximum drawdown | 0.36 | 2.93 | -2.57 |
| Martin ratioReturn relative to average drawdown | 0.79 | 13.24 | -12.46 |
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Drawdowns
GOVZ vs. SPY - Drawdown Comparison
The maximum GOVZ drawdown since its inception was -59.65%, which is greater than SPY's maximum drawdown of -55.19%. Use the drawdown chart below to compare losses from any high point for GOVZ and SPY.
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Drawdown Indicators
| GOVZ | SPY | Difference | |
|---|---|---|---|
Max DrawdownLargest peak-to-trough decline | -59.65% | -55.19% | -4.46% |
Max Drawdown (1Y)Largest decline over 1 year | -14.16% | -8.88% | -5.28% |
Max Drawdown (3Y)Largest decline over 3 years | -28.72% | -18.76% | -9.96% |
Max Drawdown (5Y)Largest decline over 5 years | -57.63% | -24.50% | -33.13% |
Max Drawdown (10Y)Largest decline over 10 years | — | -33.72% | — |
Current DrawdownCurrent decline from peak | -55.70% | -1.22% | -54.48% |
Average DrawdownAverage peak-to-trough decline | -39.99% | -9.04% | -30.95% |
Ulcer IndexDepth and duration of drawdowns from previous peaks | 6.44% | 1.97% | +4.47% |
Volatility
GOVZ vs. SPY - Volatility Comparison
The current volatility for iShares 25+ Year Treasury STRIPS Bond ETF (GOVZ) is 3.79%, while State Street SPDR S&P 500 ETF (SPY) has a volatility of 4.48%. This indicates that GOVZ 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.
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Volatility by Period
| GOVZ | SPY | Difference | |
|---|---|---|---|
Volatility (1M)Calculated over the trailing 1-month period | 3.79% | 4.48% | -0.69% |
Volatility (6M)Calculated over the trailing 6-month period | 10.64% | 9.68% | +0.96% |
Volatility (1Y)Calculated over the trailing 1-year period | 15.92% | 12.36% | +3.56% |
Volatility (5Y)Calculated over the trailing 5-year period, annualized | 23.93% | 17.14% | +6.79% |
Volatility (10Y)Calculated over the trailing 10-year period, annualized | 23.30% | 17.98% | +5.32% |
GOVZ vs. SPY - Expense Ratio Comparison
GOVZ has a 0.15% expense ratio, which is higher than SPY's 0.09% expense ratio. However, both funds are considered low-cost compared to the broader market, where average expense ratios usually range from 0.3% to 0.9%.
Dividends
GOVZ vs. SPY - Dividend Comparison
GOVZ's dividend yield for the trailing twelve months is around 5.09%, more than SPY's 0.98% yield.
| Position | TTM | 2025 | 2024 | 2023 | 2022 | 2021 | 2020 | 2019 | 2018 | 2017 | 2016 | 2015 |
|---|---|---|---|---|---|---|---|---|---|---|---|---|
GOVZ iShares 25+ Year Treasury STRIPS Bond ETF | 5.09% | 5.00% | 4.68% | 3.84% | 3.69% | 1.76% | 0.39% | 0.00% | 0.00% | 0.00% | 0.00% | 0.00% |
SPY State Street SPDR S&P 500 ETF | 0.98% | 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
GOVZ and SPY have a correlation of 0.18, meaning they provide meaningful diversification benefit when combined. Depending on your allocation goals, holding both could reduce overall portfolio risk.
SPY has higher volatility (4.48%) compared to GOVZ (3.79%). In terms of maximum drawdown, GOVZ dropped -59.65% vs SPY's -55.19%.
On 5-year performance, SPY leads with 13.74% vs -11.86% for GOVZ. On fees, SPY is cheaper at 0.09% per year. On volatility, GOVZ has been the lower-risk option at 3.79%. The better choice depends on whether you care most about return, fees, risk, or income.
Over the 5-year period, SPY has performed better with a 13.74% return vs -11.86%. Past performance does not guarantee future results, so compare this with risk, fees, and fund exposure.
SPY is cheaper with a 0.09% expense ratio, compared with 0.15% for GOVZ.
GOVZ has the higher dividend yield at 5.09%, compared with 0.98% for SPY.
GOVZ is categorized as Government Bonds, while SPY is S&P 500. GOVZ tracks ICE BofA Long US Treasury Principal STRIPS Index, while SPY tracks S&P 500 Index. They also come from different issuers: iShares and State Street. Their fees differ too: 0.15% for GOVZ and 0.09% for SPY.
SPY currently has the higher Sharpe Ratio (2.11 vs 0.32), 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.
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