PortfoliosLab logo
Tools
Performance Analysis
Risk Analysis
Optimization
Factor Model
See All Tools
Portfolio Analysis
Portfolios
Lazy PortfoliosUser Portfolios

IBM vs. SPY

Last updated Sep 30, 2023

Compare and contrast key facts about International Business Machines Corporation (IBM) and SPDR S&P 500 ETF (SPY).

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.

Scroll down to visually compare performance, riskiness, drawdowns, and other indicators and decide which better suits your portfolio: IBM or SPY.

Key characteristics


IBMSPY
YTD Return3.35%13.02%
1Y Return21.15%19.69%
5Y Return (Ann)4.41%9.85%
10Y Return (Ann)1.76%11.74%
Sharpe Ratio1.071.00
Daily Std Dev18.80%17.19%
Max Drawdown-69.40%-55.19%

Correlation

0.58
-1.001.00

The correlation between IBM and SPY is 0.58, which is considered to be moderate. This suggests that the two assets have some degree of positive relationship in their price movements. Moderate correlation can be acceptable for portfolio diversification, offering a balance between risk and potential returns.

IBM vs. SPY - Performance Comparison

In the year-to-date period, IBM achieves a 3.35% return, which is significantly lower than SPY's 13.02% return. Over the past 10 years, IBM has underperformed SPY with an annualized return of 1.76%, while SPY has yielded a comparatively higher 11.74% annualized return. The chart below displays the growth of a $10,000 investment in both assets, with all prices adjusted for splits and dividends.


-5.00%0.00%5.00%10.00%15.00%MayJuneJulyAugustSeptember
8.93%
4.78%
IBM
SPY

Compare stocks, funds, or ETFs


International Business Machines Corporation

SPDR S&P 500 ETF

IBM vs. SPY - Dividend Comparison

IBM's dividend yield for the trailing twelve months is around 4.72%, more than SPY's 1.52% yield.


TTM20222021202020192018201720162015201420132012
IBM
International Business Machines Corporation
4.72%4.85%5.16%5.91%5.77%6.89%5.07%4.53%5.16%3.89%2.96%2.64%
SPY
SPDR S&P 500 ETF
1.52%1.67%1.24%1.58%1.85%2.21%1.98%2.28%2.37%2.18%2.17%2.65%

IBM vs. SPY - Risk-Adjusted Performance Comparison

This table presents a comparison of risk-adjusted performance metrics for International Business Machines Corporation (IBM) 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.


Sharpe ratioSortino ratioOmega ratioCalmar ratioUlcer Index
IBM
International Business Machines Corporation
1.07
SPY
SPDR S&P 500 ETF
1.00

IBM vs. SPY - Sharpe Ratio Comparison

The current IBM Sharpe Ratio is 1.07, which roughly equals the SPY Sharpe Ratio of 1.00. The chart below compares the 12-month rolling Sharpe Ratio of IBM and SPY.


Rolling 12-month Sharpe Ratio0.000.501.00MayJuneJulyAugustSeptember
1.07
1.00
IBM
SPY

IBM vs. SPY - Drawdown Comparison

The maximum IBM drawdown for the period was -17.61%, roughly equal to the maximum SPY drawdown of -13.65%. The drawdown chart below compares losses from any high point along the way for IBM and SPY


-15.00%-10.00%-5.00%0.00%MayJuneJulyAugustSeptember
-6.36%
-8.05%
IBM
SPY

IBM vs. SPY - Volatility Comparison

International Business Machines Corporation (IBM) has a higher volatility of 4.63% compared to SPDR S&P 500 ETF (SPY) at 3.16%. This indicates that IBM's price experiences larger fluctuations and is considered to be riskier than SPY based on this measure. The chart below showcases a comparison of their rolling one-month volatility.


2.00%3.00%4.00%5.00%6.00%MayJuneJulyAugustSeptember
4.63%
3.16%
IBM
SPY