IAGG vs. SPY
Compare and contrast key facts about iShares Core International Aggregate Bond ETF (IAGG) and SPDR S&P 500 ETF (SPY).
IAGG and SPY are both exchange-traded funds (ETFs), meaning they are traded on stock exchanges and can be bought and sold throughout the day. IAGG is a passively managed fund by iShares that tracks the performance of the Barclays Global Aggregate ex USD 10% Issuer Capped (Hedged) Index. It was launched on Nov 10, 2015. SPY is a passively managed fund by State Street that tracks the performance of the S&P 500 Index. It was launched on Jan 22, 1993. Both IAGG and SPY are passive ETFs, meaning that they are not actively managed but aim to replicate the performance of the underlying index as closely as possible.
Scroll down to visually compare performance, riskiness, drawdowns, and other indicators and decide which better suits your portfolio: IAGG or SPY.
Key characteristics
| IAGG | SPY | |
|---|---|---|
| YTD Return | 4.01% | 24.40% |
| 1Y Return | 7.94% | 31.86% |
| 3Y Return (Ann) | 0.20% | 9.29% |
| 5Y Return (Ann) | 0.63% | 15.23% |
| Sharpe Ratio | 2.20 | 2.64 |
| Sortino Ratio | 3.37 | 3.53 |
| Omega Ratio | 1.40 | 1.49 |
| Calmar Ratio | 0.97 | 3.81 |
| Martin Ratio | 12.05 | 17.21 |
| Ulcer Index | 0.70% | 1.86% |
| Daily Std Dev | 3.83% | 12.15% |
| Max Drawdown | -13.88% | -55.19% |
| Current Drawdown | -1.30% | -2.17% |
Correlation
The correlation between IAGG and SPY is 0.01, which is considered to be low. This implies their price changes are not closely related. A low correlation is generally favorable for portfolio diversification, as it helps to reduce overall risk by spreading it across multiple assets with different performance patterns.
Performance
IAGG vs. SPY - Performance Comparison
In the year-to-date period, IAGG achieves a 4.01% return, which is significantly lower than SPY's 24.40% return. The chart below displays the growth of a $10,000 investment in both assets, with all prices adjusted for splits and dividends.
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IAGG vs. SPY - Expense Ratio Comparison
Both IAGG and SPY have an expense ratio of 0.09%, making them cost-effective options compared to the broader market, where average expense ratios typically range from 0.3% to 0.9%.
Risk-Adjusted Performance
IAGG vs. SPY - Risk-Adjusted Performance Comparison
This table presents a comparison of risk-adjusted performance metrics for iShares Core International Aggregate Bond ETF (IAGG) and 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.
Dividends
IAGG vs. SPY - Dividend Comparison
IAGG's dividend yield for the trailing twelve months is around 3.42%, more than SPY's 1.20% yield.
| TTM | 2023 | 2022 | 2021 | 2020 | 2019 | 2018 | 2017 | 2016 | 2015 | 2014 | 2013 | |
|---|---|---|---|---|---|---|---|---|---|---|---|---|
IAGG iShares Core International Aggregate Bond ETF | 3.42% | 3.55% | 2.28% | 1.16% | 1.95% | 2.82% | 3.02% | 1.74% | 1.56% | 0.13% | 0.00% | 0.00% |
SPY SPDR S&P 500 ETF | 1.20% | 1.40% | 1.65% | 1.20% | 1.52% | 1.75% | 2.04% | 1.80% | 2.03% | 2.06% | 1.87% | 1.81% |
Drawdowns
IAGG vs. SPY - Drawdown Comparison
The maximum IAGG drawdown since its inception was -13.88%, smaller than the maximum SPY drawdown of -55.19%. Use the drawdown chart below to compare losses from any high point for IAGG and SPY. For additional features, visit the drawdowns tool.
Volatility
IAGG vs. SPY - Volatility Comparison
The current volatility for iShares Core International Aggregate Bond ETF (IAGG) is 1.01%, while SPDR S&P 500 ETF (SPY) has a volatility of 4.08%. This indicates that IAGG 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.