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<h2>Key Points</h2><ul><li>Fidelity Investment Grade Bond ETF provides a significantly higher dividend yield than State Street SPDR S&amp;P 500 ETF Trust but carries a higher expense ratio.</li><li>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.</li><li>State Street SPDR S&amp;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.</li><li>10 stocks we like better than SPDR S&amp;P 500 ETF Trust ›</li></ul><p>The <strong>Fidelity Investment Grade Bond ETF</strong><span class="ticker">(NYSEMKT:FIGB)</span> offers a high-yield fixed-income alternative to the equity-heavy <strong>State Street SPDR S&amp;P 500 ETF Trust</strong><span class="ticker">(NYSEMKT:SPY)</span>, providing lower volatility and different risk exposure.</p><p>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.</p><h2 id="snapshot-cost-amp-size">Snapshot (cost &amp; size)</h2><section><table><tbody><tr><th>Metric</th><th>SPY</th><th>FIGB</th></tr><tr><td>Issuer</td><td>SPDR</td><td>Fidelity</td></tr><tr><td>Expense ratio</td><td>0.09%</td><td>0.36%</td></tr><tr><td>1-yr return (as of 2026-04-17)</td><td>36.4%</td><td>6.7%</td></tr><tr><td>Dividend yield</td><td>1.0%</td><td>4.1%</td></tr><tr><td>Beta</td><td>1.00</td><td>0.28</td></tr><tr><td>AUM</td><td>$723.5 billion</td><td>$466.2 million</td></tr></tbody></table></section><p><em>Beta measures price volatility relative to the S&amp;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.</em></p><p>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.</p><h2 id="performance-amp-risk-comparison">Performance &amp; risk comparison</h2><section><table><tbody><tr><th>Metric</th><th>SPY</th><th>FIGB</th></tr><tr><td>Max drawdown (5 yr)</td><td>(24.5%)</td><td>(18.1%)</td></tr><tr><td>Growth of $1,000 over 5 years (total return)</td><td>$1,822</td><td>$1,023</td></tr></tbody></table></section><h2 id="whatx27s-inside">What's inside</h2><p>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.</p><p>The State Street SPDR S&amp;P 500 ETF Trust, launched in 1993, holds 504 positions across all major equity sectors. Its largest positions include <strong>Nvidia Corp</strong><span class="ticker">(NASDAQ:NVDA)</span> at 7.97%, <strong>Apple Inc</strong><span class="ticker">(NASDAQ:AAPL)</span> at 6.39%, and <strong>Microsoft Corp</strong><span class="ticker">(NASDAQ:MSFT)</span> 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.</p><p>For more guidance on ETF investing, check out the full guide at this link.</p><h2 id="which-looks-like-the-better-buy">Which looks like the better buy</h2><p>Both the Fidelity Investment Grade Bond ETF (FIGB) and the State Street SPDR S&amp;P 500 ETF Trust (SPY) are exchange-traded funds (ETFs) that investors should get to know. Here are some key takeaways for investors.</p><p>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&amp;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%.</p><p>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.</p><p>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&amp;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.</p><h2>Should you buy stock in SPDR S&amp;P 500 ETF Trust right now?</h2>
<p>Before you buy stock in SPDR S&amp;P 500 ETF Trust, consider this:</p>
<p>The <em>Motley Fool Stock Advisor</em> analyst team just identified what they believe are the <strong>10 best stocks</strong> for investors to buy now… and SPDR S&amp;P 500 ETF Trust wasn’t one of them. The 10 stocks that made the cut could produce monster returns in the coming years.</p>
<p>Consider when <strong>Netflix</strong> made this list on December 17, 2004... if you invested $1,000 at the time of our recommendation, <strong>you’d have $502,837</strong>!* Or when <strong>Nvidia</strong> made this list on April 15, 2005... if you invested $1,000 at the time of our recommendation, <strong>you’d have $1,241,433</strong>!*</p>
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<p style="color: #767676; text-align: left"><em>*Stock Advisor returns as of April 23, 2026. </em></p><p><em>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.</em></p>
<p>The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.</p>
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FIGB

<p>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).</p>

- The Fidelity Investment Grade Bond ETF offers a higher dividend yield of 4.1% compared to the 1.0% yield of the State Street SPDR S&P 500 ETF Trust but has a higher expense ratio of 0.36%.  
- While the SPDR trust produced a total return of 36.4% over the past year, Fidelity’s fund maintained lower price volatility and drawdown, appealing to income-oriented investors.  
- These funds serve different investment goals; SPY aims for capital growth, whereas FIGB focuses on providing stable income through fixed-income securities.

nasdaq

SPDR S&P 500

Fidelity Investment Grade Bond ETF

NVIDIA

Apple

Microsoft

Netflix

State Street

NVIDIA Corporation

State Street® US Equity Premium Inc ETF

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