AAVM vs SPY

Quick Verdict

SPY has a lower expense ratio. AAVM delivered stronger 1-year returns. SPY offers more diversification with 503 holdings.

Lower Fees: SPYHigher Returns: AAVMMore Diversified: SPY

Side-by-Side Comparison

MetricAAVMSPYWinner
Expense Ratio0.38%0.09%
AUM$25M$789.1B
Dividend Yield1.80%1.01%
Holdings6505
YTD Return+16.25%+14.47%
1Y Return+27.32%+21.96%
3Y Return (annualized)+18.10%+21.70%
5Y Return (annualized)+6.83%+13.30%
Volatility (annualized)12.9%15.3%
Max Drawdown-34.7%-56.5%
Fund FamilyAlpha ArchitectState Street Investment Management
CategoryEquityEquity
InceptionMay 2, 2017Jan 22, 1993

AAVM vs SPY Performance

Alpha Architect Global Factor Equity ETF (AAVM) is a ETF from Alpha Architect and State Street SPDR S&P 500 ETF Trust (SPY) is a ETF from State Street Investment Management. Over the past year AAVM returned +27.32% while SPY returned +21.96%. Year to date, AAVM is up 16.25% versus a gain of 14.47% for SPY.

Over three years, AAVM compounded at +18.10% per year against +21.70% for SPY; over five years the annualized figures are +6.83% and +13.30% respectively. Across the full 9-year window we track, SPY has the edge at +8.87% annualized vs +5.33%. Past performance does not guarantee future results.

Risk: Volatility and Drawdowns

SPY has been the more volatile fund, with annualized monthly volatility of 15.3% compared with 12.9% for AAVM. Lower volatility generally means a smoother ride, though it often comes with lower long-run returns.

The deepest peak-to-trough decline in our data was -34.7% for AAVM and -56.5% for SPY. Drawdown depth is worth weighing if you expect to sell during market stress rather than ride it out.

The two funds' monthly returns correlate at 0.72. They usually move together, but the gap leaves some room for diversification.

Fees and Cost Over Time

AAVM charges 0.38% per year while SPY charges 0.09%. On a $10,000 position that is $38 vs $9 annually, a gap of $29 per year that compounds over a long holding period. On income, AAVM currently yields 1.80% against 1.01% for SPY.

Holdings Overlap

0.0%overlap

AAVM and SPY share 0 holdings out of 508 unique holdings combined, representing a 0.0% weight overlap.

Moderate overlap means holding both could provide meaningful diversification benefits.

Frequently Asked Questions

Which is cheaper, AAVM or SPY?

AAVM has an expense ratio of 0.38% while SPY charges 0.09%. SPY is the cheaper option. On a $10,000 investment, that is $29 per year of difference.

Which performed better, AAVM or SPY?

Over the past year AAVM returned +27.32% vs +21.96% for SPY, so AAVM leads on 1-year performance. Over the longest common window we track (9 years), AAVM annualized +5.33% vs +8.87% for SPY. Past performance does not guarantee future results.

Which is riskier, AAVM or SPY?

SPY has been the more volatile fund at 15.3% annualized versus 12.9% for AAVM. Worst drawdown: AAVM -34.7% vs SPY -56.5%.

Should I hold both AAVM and SPY?

AAVM and SPY have a monthly-return correlation of 0.72, so combining them can provide real diversification depending on your allocation goals.

What is the holdings overlap between AAVM and SPY?

AAVM and SPY share 0 common holdings with a 0.0% weight overlap. Combined, they hold 508 unique securities.

Which pays a higher dividend, AAVM or SPY?

AAVM yields 1.80% while SPY yields 1.01%, so AAVM currently pays the higher dividend yield.

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