SPDR Portfolio Aggregate Bond ETF (SPAB): Complete Beginner's Guide
Last updated: March 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% |
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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%
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.
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.
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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.