SPDR Portfolio Aggregate Bond ETF (SPAB): Complete Beginner's Guide
SPDR Portfolio Aggregate Bond ETF (SPAB) is a total bond market ETF from State Street Global Advisors with an expense ratio of 0.03% and $8.0B in assets under management. Our Beginner Suitability Score: 10/10 (Great for Beginners). 5-year annualized return: 1.00%.
Last updated: April 2026
State Street Global Advisors • Total Bond Market
Expense Ratio
0.03%
AUM
$8.0B
Dividend Yield
3.30%
Inception
2007
Beginner Score
10/10
What is SPDR Portfolio Aggregate Bond ETF?
SPAB tracks the Bloomberg U.S. Aggregate Bond Index, offering broad exposure to the entire U.S. investment-grade bond market at rock-bottom cost. It includes Treasuries, corporate bonds, and mortgage-backed securities in a single, easy-to-own fund. For beginners, SPAB is a convenient and affordable way to add a diversified bond allocation to any portfolio.
SPAB is managed by State Street Global Advisors and has been available since 2007. With $8.0B in assets under management, it's a growing fund that has attracted significant investor interest. The fund charges an expense ratio of 0.03%, which means for every $10,000 you invest, you pay approximately $3 per year in management fees.
SPAB at a Glance — Key Metrics
| Expense Ratio | 0.03% |
| Total Holdings | 5,500 |
| P/E Ratio | N/A |
| Beta | 0.12 |
| Dividend Yield | 3.30% |
| AUM | $8.0B |
| Inception Year | 2007 |
| Issuer | State Street Global Advisors |
Top 10 Holdings in SPAB
SPAB holds 5,500 different securities. Here are the largest positions that make up the core of this fund:
| # | Company | Ticker | Weight |
|---|---|---|---|
| 1 | U.S. Treasury 4.125% 2032 | GOVT | 2.40% |
| 2 | U.S. Treasury 3.75% 2043 | GOVT | 2.10% |
| 3 | Fannie Mae 4.5% MBS | FNMA | 1.90% |
| 4 | U.S. Treasury 4.375% 2030 | GOVT | 1.80% |
| 5 | Ginnie Mae 4.0% MBS | GNMA | 1.60% |
| 6 | U.S. Treasury 3.625% 2053 | GOVT | 1.40% |
| 7 | Freddie Mac 4.0% MBS | FHLMC | 1.30% |
| 8 | Federal Home Loan Bank 3.875% | FHLB | 1.10% |
| 9 | Goldman Sachs 4.5% 2031 | GS | 0.90% |
| 10 | Morgan Stanley 4.35% 2033 | MS | 0.80% |
SPAB's top holding is U.S. Treasury 4.125% 2032 (GOVT) at 2.40%, followed by U.S. Treasury 3.75% 2043 (GOVT) at 2.10% and Fannie Mae 4.5% MBS (FNMA) at 1.90%. The top 10 holdings account for 15.30% of the fund's 5,500 total positions.
View data table
| Rank | Company | Ticker | Weight |
|---|---|---|---|
| 1 | U.S. Treasury 4.125% 2032 | GOVT | 2.40% |
| 2 | U.S. Treasury 3.75% 2043 | GOVT | 2.10% |
| 3 | Fannie Mae 4.5% MBS | FNMA | 1.90% |
| 4 | U.S. Treasury 4.375% 2030 | GOVT | 1.80% |
| 5 | Ginnie Mae 4.0% MBS | GNMA | 1.60% |
| 6 | U.S. Treasury 3.625% 2053 | GOVT | 1.40% |
| 7 | Freddie Mac 4.0% MBS | FHLMC | 1.30% |
| 8 | Federal Home Loan Bank 3.875% | FHLB | 1.10% |
| 9 | Goldman Sachs 4.5% 2031 | GS | 0.90% |
| 10 | Morgan Stanley 4.35% 2033 | MS | 0.80% |
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SPAB Performance History
Here's how SPAB has performed over different time periods. Remember that past performance doesn't guarantee future results, but it gives you a sense of the fund's track record:
YTD
0.80%
1 Year
3.90%
3 Year
1.10%
5 Year
1.00%
10 Year
1.90%
SPAB has returned 1.00% annualized over 5 years and 1.90% over 10 years. YTD return is 0.80%.
View data table
| Period | Return |
|---|---|
| YTD | 0.80% |
| 1 Year | 3.90% |
| 3 Year | 1.10% |
| 5 Year | 1.00% |
| 10 Year | 1.90% |
Beginner Suitability Score: 10/10
Our proprietary Beginner Suitability Score evaluates ETFs based on five factors that matter most to new investors: fees, volatility, diversification, dividend history, and track record length.
SPAB scores 10/10 because it has very low fees, shows lower-than-average volatility, offers broad diversification across 5,500 holdings, and has been available since 2007, giving it a proven track record.
How to Buy SPAB — Step by Step
- Open a brokerage account — We recommend Fidelity, Charles Schwab, or Vanguard for ETF investing. All offer $0 commissions on ETF trades.
- Fund your account — Transfer money from your bank. You can start with as little as $1 if your broker offers fractional shares.
- Search for "SPAB" — Use the search bar in your brokerage platform to find SPDR Portfolio Aggregate Bond ETF.
- Place your order — Choose "Market Order" for simplicity or "Limit Order" if you want to set a specific price. Enter how many shares (or dollar amount) you want to buy.
- Set up automatic investing — Most brokers let you schedule recurring purchases (e.g., $100/month on the 1st). This is dollar cost averaging in action.
SPAB Sector Allocation
Here's how SPAB distributes its investments across different sectors of the economy:
SPAB's largest sector allocation is U.S. Treasury at 42.0%, followed by MBS at 26.0% and Corporate at 23.0%.
View data table
| Sector | Weight |
|---|---|
| U.S. Treasury | 42.0% |
| MBS | 26.0% |
| Corporate | 23.0% |
| Government-Related | 4.0% |
| CMBS | 2.0% |
| Asset-Backed | 2.0% |
| Municipal | 0.5% |
| Cash & Equivalents | 0.5% |
Dollar Cost Averaging Into SPAB
Here's what consistent monthly investing could look like over time, assuming an average annual return of 8% (approximate historical stock market average):
| Monthly | 10 Years | 20 Years | 30 Years |
|---|---|---|---|
| $100/mo | $18,417 | $59,295 | $150,030 |
| $250/mo | $46,041 | $148,237 | $375,074 |
| $500/mo | $92,083 | $296,474 | $750,148 |
*Projections assume 8% average annual return with monthly compounding. Actual returns will vary. Past performance doesn't guarantee future results.
Fee impact: With SPAB's expense ratio of 0.03%, a $10,000 investment would lose approximately $258 to fees over 20 years compared to a zero-fee investment. This is a reasonable fee level for the value provided.
SPAB's expense ratio of 0.03% costs $259 on a $10,000 investment over 20 years (assuming 8% annual return). Without fees, the investment would grow to $46,610 instead of $46,351.
View data table
| Year | Without Fees | With Fees | Fee Cost |
|---|---|---|---|
| 0 | $10,000 | $10,000 | $0 |
| 5 | $14,693 | $14,673 | $20 |
| 10 | $21,589 | $21,529 | $60 |
| 15 | $31,722 | $31,590 | $132 |
| 20 | $46,610 | $46,351 | $259 |
Pros and Cons of SPAB
Pros
- ✓One of the lowest-cost aggregate bond ETFs at just 0.03% expense ratio
- ✓Tracks the same widely used Bloomberg Agg index as BND and AGG
- ✓Massive diversification across over 5,500 investment-grade bonds
- ✓Long track record dating back to 2007 with consistent index tracking
Cons
- ✗Nearly identical to BND and AGG so offers no unique advantage
- ✗Moderate interest rate sensitivity leads to losses when rates spike
- ✗Excludes high-yield and international bonds, limiting total return potential
Frequently Asked Questions
Is SPAB a good ETF for beginners?▾
SPAB has a Beginner Suitability Score of 10/10 on our scale. This makes it a strong choice for new investors due to its low fees and broad diversification.
What is the expense ratio of SPAB?▾
SPAB has an expense ratio of 0.03%. This means for every $10,000 you invest, you pay approximately $3 per year in fees. This is considered very low and cost-efficient.
How much money do I need to invest in SPAB?▾
You can invest in SPAB with as little as $1 through brokers that offer fractional shares (like Fidelity, Schwab, or Robinhood). There is no minimum investment required beyond the share price itself, which changes daily. Dollar cost averaging — investing a fixed amount regularly — is a popular strategy.
Does SPAB pay dividends?▾
Yes, SPAB pays dividends with a current yield of approximately 3.30%. Dividends are typically paid quarterly and can be reinvested automatically through most brokers.
What are the top holdings in SPAB?▾
The top holdings in SPAB include U.S. Treasury 4.125% 2032 (2.40%), U.S. Treasury 3.75% 2043 (2.10%), Fannie Mae 4.5% MBS (1.90%), and more. The fund holds 5,500 total positions, providing broad diversification across many companies.
What sectors does SPAB invest in?▾
SPAB's largest sector allocations are U.S. Treasury (42.00%), MBS (26.00%), Corporate (23.00%). This sector distribution shows a focus on u.s. treasury stocks.
How much do SPAB's fees cost over time?▾
With an expense ratio of 0.03%, a $10,000 investment in SPAB would lose approximately $258 to fees over 20 years (assuming 8% annual returns). This is a reasonable fee level.