TLT vs. SPY
Compare and contrast key facts about iShares 20+ Year Treasury Bond ETF (TLT) and SPDR S&P 500 ETF (SPY).
TLT and SPY are both exchange-traded funds (ETFs), meaning they are traded on stock exchanges and can be bought and sold throughout the day. TLT is a passively managed fund by iShares that tracks the performance of the Barclays Capital U.S. 20+ Year Treasury Bond Index. It was launched on Jul 26, 2002. 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 TLT 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: TLT or SPY.
Performance
TLT vs. SPY - Performance Comparison
Returns By Period
In the year-to-date period, TLT achieves a -5.50% return, which is significantly lower than SPY's 25.41% return. Over the past 10 years, TLT has underperformed SPY with an annualized return of -0.35%, while SPY has yielded a comparatively higher 13.07% annualized return.
TLT
-5.50%
-1.64%
0.56%
3.85%
-6.08%
-0.35%
SPY
25.41%
1.18%
12.15%
32.04%
15.51%
13.07%
Key characteristics
| TLT | SPY | |
|---|---|---|
| Sharpe Ratio | 0.26 | 2.62 |
| Sortino Ratio | 0.47 | 3.50 |
| Omega Ratio | 1.05 | 1.49 |
| Calmar Ratio | 0.09 | 3.78 |
| Martin Ratio | 0.61 | 17.00 |
| Ulcer Index | 6.27% | 1.87% |
| Daily Std Dev | 14.73% | 12.14% |
| Max Drawdown | -48.35% | -55.19% |
| Current Drawdown | -41.12% | -1.38% |
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TLT vs. SPY - Expense Ratio Comparison
TLT 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%.
Correlation
The correlation between TLT and SPY is -0.27. This indicates that the assets' prices tend to move in opposite directions. Negative correlation can be particularly beneficial for diversification and risk management, as one asset may offset the losses of the other during market fluctuations.
Risk-Adjusted Performance
TLT vs. SPY - Risk-Adjusted Performance Comparison
This table presents a comparison of risk-adjusted performance metrics for iShares 20+ Year Treasury Bond ETF (TLT) 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
TLT vs. SPY - Dividend Comparison
TLT's dividend yield for the trailing twelve months is around 4.07%, more than SPY's 1.19% yield.
| TTM | 2023 | 2022 | 2021 | 2020 | 2019 | 2018 | 2017 | 2016 | 2015 | 2014 | 2013 | |
|---|---|---|---|---|---|---|---|---|---|---|---|---|
TLT iShares 20+ Year Treasury Bond ETF | 4.07% | 3.38% | 2.67% | 1.50% | 1.50% | 2.27% | 2.63% | 2.43% | 2.60% | 2.61% | 2.67% | 3.26% |
SPY SPDR S&P 500 ETF | 1.19% | 1.40% | 1.65% | 1.20% | 1.52% | 1.75% | 2.04% | 1.80% | 2.03% | 2.06% | 1.87% | 1.81% |
Drawdowns
TLT vs. SPY - Drawdown Comparison
The maximum TLT drawdown since its inception was -48.35%, smaller than the maximum SPY drawdown of -55.19%. Use the drawdown chart below to compare losses from any high point for TLT and SPY. For additional features, visit the drawdowns tool.
Volatility
TLT vs. SPY - Volatility Comparison
iShares 20+ Year Treasury Bond ETF (TLT) has a higher volatility of 4.65% compared to SPDR S&P 500 ETF (SPY) at 4.09%. This indicates that TLT'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.