ITW vs SPY: Illinois Tool Works Inc. vs SPDR S&P 500 ETF Trust Historical Returns & Investment Comparison

This ITW vs SPY comparison analyzes the historical stock performance of Illinois Tool Works Inc. and SPDR S&P 500 ETF Trust side-by-side. Using real, adjusted market data, this tool shows how identical investments in both stocks would have performed over time—highlighting differences in annual returns and consistency across market cycles.

Use the interactive calculator below to adjust the investment amount and time period, visualizing how Illinois Tool Works Inc. and SPDR S&P 500 ETF Trust have historically performed against each other.

Company Profiles

Illinois Tool Works Inc.

ITW

Illinois Tool Works Inc. (ITW) is an American Fortune 500 company that operates as a diversified global manufacturer of industrial products and equipment. The company's business model is characterized by a 'small-wins strategy' emphasizing decentralization, simplicity, customer-focused innovation, and strategic acquisitions, alongside an '80/20' approach that prioritizes high-margin products and customer-centric solutions across its seven core business segments.

Key Innovations

✓The '80/20' business process, a proprietary approach that focuses on optimizing resources by prioritizing high-value products and customers, leading to enhanced efficiency and profitability.
✓A decentralized operating structure that fosters entrepreneurial spirit and allows for agile responses to local market demands and customer needs.
✓Integration of advanced data analytics and automation into core operational workflows.
✓Continuous innovation within its diverse portfolio of industrial products and equipment, driven by customer-focused research and development to deliver high-performance solutions.
✓Strategic R&D investment driving next-generation solution design and market differentiation.
✓Proprietary technology architecture developed by Illinois Tool Works Inc. to optimize operational performance.
✓Expansion of digital transformation initiatives across product engineering and customer delivery.

Business Segments

Automotive OEM
Provides engineered fasteners, components, and assemblies for automotive manufacturers.
Food Equipment
Designs and manufactures commercial food equipment for restaurants, institutions, and other food service establishments.
Test & Measurement and Electronics
Focuses on precision measurement and electronic assembly solutions for various industries.

SPDR S&P 500 ETF Trust

SPY

SPDR S&P 500 ETF Trust (SPY) is an exchange-traded fund managed by State Street Global Advisors that provides investors with targeted exposure to U.S. Large-Cap Equity by tracking the S&P 500 Index. The fund is structured to offer efficient, liquid, and low-cost access to its underlying asset class, utilizing continuous creation and redemption mechanisms to maintain tight alignment between market price and Net Asset Value (NAV). Widely utilized by institutional wealth managers, pension funds, and retail investors alike, SPY plays a central role in modern portfolio construction, asset allocation, and tactical risk management.

Key Innovations

✓Intra-day secondary market liquidity for benchmark S&P 500 Index exposure.
✓In-kind creation and redemption process mitigating embedded tax capital gains distributions.
✓Ultra-low expense ratio cost structure enabling compounding long-term investment returns.
✓Institutional-grade portfolio transparency with daily published holding disclosure.

Business Segments

Core Equity / Asset Portfolio
Direct holdings of underlying constituent securities comprising the S&P 500 Index.
Creation and Redemption Mechanism
Operational framework facilitating institutional Authorized Participants in exchanging basket securities for fund shares.
Securities Lending & Yield Optimization
Program generating incremental income by lending portfolio securities to institutional counterparties under collateralized agreements.

How This Comparison Works

Our stock comparison tool uses adjusted closing prices to calculate year-by-year returns for both stocks. This ensures an apples-to-apples comparison that accounts for:

✓Dividends: Prices are dividend-adjusted, reflecting the effect of dividend payments over time
✓Stock splits: Historical prices are adjusted for all splits
✓Head-to-head record: Shows which stock outperformed each year
✓Statistical analysis: Average returns, best/worst years, and win rates

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Important Disclaimer

This comparison tool is for educational and informational purposes only and does not constitute financial, investment, or trading advice. Past performance is not indicative of future results. Historical returns include dividends and stock splits but do not account for taxes, fees, inflation, or individual circumstances. Stock market investments carry risk, including the potential loss of principal. Always consult with a qualified financial advisor before making investment decisions. The data presented is based on historical market data and may contain inaccuracies or delays.