---
title: "SPY vs. FIGB: SPDR S&P 500 ETF Provides Equity-Based Growth, While Fidelity Bond ETF Offers a Higher Yield"
type: "News"
locale: "en"
url: "https://longbridge.com/en/news/283867415.md"
description: "The Fidelity Investment Grade Bond ETF (FIGB) offers a higher dividend yield (4.1%) compared to the SPDR S&P 500 ETF Trust (SPY) at 1.0%, but has a higher expense ratio (0.36% vs. 0.09%). SPY has delivered better total returns over five years, while FIGB shows lower volatility and a shallower maximum drawdown. SPY focuses on capital appreciation with significant holdings in tech stocks, while FIGB targets income stability through investment-grade bonds. Investors should choose based on their preference for growth (SPY) or income (FIGB)."
datetime: "2026-04-23T16:20:28.000Z"
locales:
  - [zh-CN](https://longbridge.com/zh-CN/news/283867415.md)
  - [en](https://longbridge.com/en/news/283867415.md)
  - [zh-HK](https://longbridge.com/zh-HK/news/283867415.md)
---

# SPY vs. FIGB: SPDR S&P 500 ETF Provides Equity-Based Growth, While Fidelity Bond ETF Offers a Higher Yield

## Key Points

-   Fidelity Investment Grade Bond ETF provides a significantly higher dividend yield than State Street SPDR S&P 500 ETF Trust but carries a higher expense ratio.
-   The SPDR trust has delivered substantially higher total returns over the last five years while the Fidelity fund exhibits much lower price volatility and a shallower maximum drawdown.
-   State Street SPDR S&P 500 ETF Trust is a massive equity fund with over $700 billion in assets whereas Fidelity Investment Grade Bond ETF is a smaller fixed-income vehicle.
-   10 stocks we like better than SPDR S&P 500 ETF Trust ›

The **Fidelity Investment Grade Bond ETF**(NYSEMKT:FIGB) offers a high-yield fixed-income alternative to the equity-heavy **State Street SPDR S&P 500 ETF Trust**(NYSEMKT:SPY), providing lower volatility and different risk exposure.

While SPY tracks the broad performance of the largest companies in the U.S. stock market, FIGB focuses on the high-grade debt market. These two funds serve different roles in a portfolio: one seeks capital appreciation, while the other prioritizes income and relative stability.

## Snapshot (cost & size)

Metric

SPY

FIGB

Issuer

SPDR

Fidelity

Expense ratio

0.09%

0.36%

1-yr return (as of 2026-04-17)

36.4%

6.7%

Dividend yield

1.0%

4.1%

Beta

1.00

0.28

AUM

$723.5 billion

$466.2 million

_Beta measures price volatility relative to the S&P 500; beta is calculated from five-year monthly returns. The 1-yr return represents total return over the trailing 12 months. Dividend yield is the trailing-12-month distribution yield._

Investors pay a higher premium for active management or specialized bond exposure, as the Fidelity fund expense ratio is 0.27 percentage points higher than the SPDR trust. However, the Fidelity fund offers a significantly higher payout for income seekers.

## Performance & risk comparison

Metric

SPY

FIGB

Max drawdown (5 yr)

(24.5%)

(18.1%)

Growth of $1,000 over 5 years (total return)

$1,822

$1,023

## What's inside

The Fidelity Investment Grade Bond ETF, launched in 2021, provides access to U.S. high-grade bond sectors. The portfolio primarily consists of investment-grade corporate bonds and U.S. Treasury securities, with 180 total holdings. The fund has a trailing-12-month dividend of $1.77 per share.

The State Street SPDR S&P 500 ETF Trust, launched in 1993, holds 504 positions across all major equity sectors. Its largest positions include **Nvidia Corp**(NASDAQ:NVDA) at 7.97%, **Apple Inc**(NASDAQ:AAPL) at 6.39%, and **Microsoft Corp**(NASDAQ:MSFT) at 5.16%. The technology sector accounts for 34% of the fund. It has paid $7.38 per share over the trailing 12 months, reflecting its focus on large-cap equity growth rather than heavy fixed-income distributions.

For more guidance on ETF investing, check out the full guide at this link.

## Which looks like the better buy

Both the Fidelity Investment Grade Bond ETF (FIGB) and the State Street SPDR S&P 500 ETF Trust (SPY) are exchange-traded funds (ETFs) that investors should get to know. Here are some key takeaways for investors.

First, let’s take a look at SPY. This fund is one of the largest ETFs in the world, with over $720 billion in AUM. The fund tracks the S&P 500 benchmark and, consequently, its top holdings are mostly big tech stocks like Nvidia, Apple, and Microsoft. The fund charges a fairly low expense ratio of 0.09% and has a very modest dividend yield of 1.04%.

FIGB, by contrast, is a bond ETF. Its largest holdings are U.S. Treasury bonds, although the fund also holds a significant portion of mortgage-backed securities, corporate bonds, and cash. Since it is a fixed-income ETF, it has a much higher dividend yield of 4.10% compared to SPY. However, it also has a higher expense ratio of 0.36%, meaning investors will pay a higher fee annually.

In summary, these two funds differ significantly in their strategies. SPY is a core holding for many investors, though other index ETFs that also track the S&P 500 offer a lower expense ratio. FIGB, meanwhile, is a fixed-income ETF designed for income-oriented investors. Its solid dividend yield of 4.10% will help deliver steady cash payments to investors seeking income from their portfolios. Yet, its expense ratio of 0.36% might give extremely cost-conscious investors pause, as there are bond ETFs offering similar yield with lower fees. However, if choosing between only these two ETFs, growth-seeking investors will likely favor SPY, while income-oriented investors will likely favor FIGB.

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_\*Stock Advisor returns as of April 23, 2026._

_Jake Lerch has positions in Nvidia. The Motley Fool has positions in and recommends Apple, Microsoft, and Nvidia. The Motley Fool has a disclosure policy._

The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

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