SPY vs. TLT
SPY (State Street SPDR S&P 500 ETF) and TLT (iShares 20+ Year Treasury Bond ETF) are both exchange-traded funds - SPY is a S&P 500 fund tracking the S&P 500 Index, while TLT is a Government Bonds fund tracking the ICE U.S. Treasury 20+ Year Bond Index. Both are passively managed. Over the past 10 years, SPY returned 15.27%/yr vs -2.23%/yr for TLT. Their -0.24 correlation means they have often moved in opposite directions in the past. SPY charges 0.09%/yr vs 0.15%/yr for TLT.
Performance
SPY vs. TLT - Performance Comparison
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Returns By Period
In the year-to-date period, SPY achieves a 13.49% return, which is significantly higher than TLT's -2.22% return. Over the past 10 years, SPY has outperformed TLT with an annualized return of 15.27%, while TLT has yielded a comparatively lower -2.23% annualized return.
SPY
- 1D
- -0.20%
- 1M
- 2.46%
- 6M
- 12.78%
- YTD
- 13.49%
- 1Y
- 23.94%
- 3Y*
- 21.38%
- 5Y*
- 13.23%
- 10Y*
- 15.27%
- ALL TIME*
- 10.88%
TLT
- 1D
- 0.22%
- 1M
- -2.48%
- 6M
- -1.90%
- YTD
- -2.22%
- 1Y
- -1.73%
- 3Y*
- -0.82%
- 5Y*
- -7.75%
- 10Y*
- -2.23%
- ALL TIME*
- 3.52%
Liquidity Comparison
| Position | Avg. Volume Value (2W) | Avg. Volume Value (1M) | Avg. Volume Value (3M) |
|---|---|---|---|
| $41.99B | $36.81B | $39.78B | |
| $2.70B | $2.15B | $2.23B |
SPY vs. TLT - Yearly Performance Comparison
| 2026 (YTD) | 2025 | 2024 | 2023 | 2022 | 2021 | 2020 | 2019 | 2018 | 2017 | |
|---|---|---|---|---|---|---|---|---|---|---|
SPY State Street SPDR S&P 500 ETF | 13.49% | 17.72% | 24.89% | 26.18% | -18.18% | 28.73% | 18.33% | 31.22% | -4.57% | 21.71% |
TLT iShares 20+ Year Treasury Bond ETF | -2.22% | 4.25% | -8.05% | 2.77% | -31.23% | -4.60% | 18.15% | 14.12% | -1.61% | 9.18% |
Correlation
The correlation between SPY and TLT is 0.25, which is low. Their historical price movements had little consistent relationship.
| Correlation | |
|---|---|
Correlation (1Y) Focuses on recent behavior, but can change the most. | 0.25 |
Correlation (3Y) Balances recent behavior with more history. | 0.18 |
Correlation (5Y) Shows whether the relationship held over a longer period. | 0.10 |
Correlation (10Y) Provides a long-term view across more market conditions. | -0.07 |
Correlation (All Time) Calculated using the full available price history since Jul 26, 2002 | -0.24 |
The correlation between SPY and TLT shifts across timeframes, from -0.24 (all time) to 0.25 (1 year), reflecting how their relationship changes across market environments.
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Return for Risk
SPY vs. TLT — Risk / Return Rank
SPY
TLT
SPY vs. TLT - Risk-Adjusted Trends Comparison
This table presents a comparison of risk-adjusted performance metrics for State Street SPDR S&P 500 ETF (SPY) and iShares 20+ Year Treasury Bond ETF (TLT). 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.
| SPY | TLT | Difference | |
|---|---|---|---|
| Sharpe ratioReturn per unit of total volatility | +2.06 | ||
| Sortino ratioReturn per unit of downside risk | +2.78 | ||
| Omega ratioGain probability vs. loss probability | 1.33 | 0.98 | +0.36 |
| Calmar ratioReturn relative to maximum drawdown | 2.71 | -0.22 | +2.93 |
| Martin ratioReturn relative to average drawdown | 11.55 | -0.48 | +12.02 |
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Drawdowns
SPY vs. TLT - Drawdown Comparison
The maximum SPY drawdown since its inception was -55.19%, which is greater than TLT's maximum drawdown of -48.35%. Use the drawdown chart below to compare losses from any high point for SPY and TLT.
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Drawdown Indicators
| SPY | TLT | Difference | |
|---|---|---|---|
Max DrawdownLargest peak-to-trough decline | -55.19% | -48.35% | -6.84% |
Max Drawdown (1Y)Largest decline over 1 year | -8.88% | -7.74% | -1.14% |
Max Drawdown (3Y)Largest decline over 3 years | -18.76% | -14.79% | -3.97% |
Max Drawdown (5Y)Largest decline over 5 years | -24.50% | -43.70% | +19.20% |
Max Drawdown (10Y)Largest decline over 10 years | -33.72% | -48.35% | +14.63% |
Current DrawdownCurrent decline from peak | -0.20% | -41.60% | +41.40% |
Average DrawdownAverage peak-to-trough decline | -9.01% | -14.00% | +4.99% |
Ulcer IndexDepth and duration of drawdowns from previous peaks | 2.08% | 3.65% | -1.57% |
Volatility
SPY vs. TLT - Volatility Comparison
State Street SPDR S&P 500 ETF (SPY) has a higher volatility of 4.10% compared to iShares 20+ Year Treasury Bond ETF (TLT) at 2.51%. This indicates that SPY's price experiences larger fluctuations and is considered to be riskier than TLT based on this measure. The chart below showcases a comparison of their rolling one-month volatility.
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Volatility by Period
| SPY | TLT | Difference | |
|---|---|---|---|
Volatility (1M)Calculated over the trailing 1-month period | 4.10% | 2.51% | +1.59% |
Volatility (6M)Calculated over the trailing 6-month period | 10.32% | 6.88% | +3.44% |
Volatility (1Y)Calculated over the trailing 1-year period | 12.88% | 9.25% | +3.63% |
Volatility (5Y)Calculated over the trailing 5-year period, annualized | 17.21% | 15.74% | +1.47% |
Volatility (10Y)Calculated over the trailing 10-year period, annualized | 17.96% | 14.83% | +3.13% |
SPY vs. TLT - Expense Ratio Comparison
SPY has a 0.09% expense ratio, which is lower than TLT's 0.15% expense ratio. Despite the difference, both funds are considered low-cost compared to the broader market, where average expense ratios usually range from 0.3% to 0.9%.
Dividends
SPY vs. TLT - Dividend Comparison
SPY's dividend yield for the trailing twelve months is around 0.98%, less than TLT's 4.70% yield.
| Position | TTM | 2025 | 2024 | 2023 | 2022 | 2021 | 2020 | 2019 | 2018 | 2017 | 2016 | 2015 |
|---|---|---|---|---|---|---|---|---|---|---|---|---|
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% |
TLT iShares 20+ Year Treasury Bond ETF | 4.70% | 4.43% | 4.30% | 3.38% | 2.67% | 1.50% | 1.50% | 2.27% | 2.63% | 2.43% | 2.60% | 2.61% |
Frequently Asked Questions
SPY and TLT have a correlation of 0.25, meaning they provide meaningful diversification benefit when combined. Depending on your allocation goals, holding both could reduce overall portfolio risk.
SPY has higher volatility (4.10%) compared to TLT (2.51%). In terms of maximum drawdown, SPY dropped -55.19% vs TLT's -48.35%.
On 10-year performance, SPY leads with 15.27% vs -2.23% for TLT. On fees, SPY is cheaper at 0.09% per year. On volatility, TLT has been the lower-risk option at 2.51%. The better choice depends on whether you care most about return, fees, risk, or income.
Over the 10-year period, SPY has performed better with a 15.27% return vs -2.23%. 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 TLT.
TLT has the higher dividend yield at 4.70%, compared with 0.98% for SPY.
SPY is categorized as S&P 500, while TLT is Government Bonds. SPY tracks S&P 500 Index, while TLT tracks ICE U.S. Treasury 20+ Year Bond Index. They also come from different issuers: State Street and iShares. Their fees differ too: 0.09% for SPY and 0.15% for TLT.
SPY currently has the higher Sharpe Ratio (1.87 vs -0.19), 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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