AFSM vs SPY

AFSM vs SPY

Which is better, AFSM or SPY?

Small Cap Blend against Large Cap Blend.

SPY has a lower expense ratio. AFSM led over 1Y, SPY over 3Y, 5Y and the full window. AFSM is less concentrated, with 8.2% of the fund in its ten largest positions against 38.0%.

Lower Fees: SPYHigher Returns: splitLess Concentrated: AFSM

MarketXLS is not an investment adviser. This comparison is generated automatically from market data and is for information only. A Best mark means the better reading on that one measure, not a recommendation to buy.

Side-by-Side Comparison

MetricAFSMSPY
Expense Ratio0.75%0.09%Best
AUM$137M$814.4B
Dividend Yield0.50%1.01%
Holdings670505
YTD Return+23.12%Best+13.34%
1Y Return+24.70%Best+19.97%
3Y Return (annualized)+18.76%+21.20%Best
5Y Return (annualized)+9.75%+12.81%Best
Volatility (annualized)21.9%16.9%Best
Max Drawdown-43.5%-34.1%Best
$10,000 over 5 years$15,923$18,270Best
Top 10 Weight8.2%Best38.0%
Fund FamilyFirst Trust Portfolios (US)State Street Investment Management
CategoryEquityEquity
StyleSmall Cap BlendLarge Cap Blend
InceptionDec 4, 2019Jan 22, 1993

Volatility and max drawdown are measured over the window both funds cover: Dec 4, 2019 to Sep 4, 2026 (6.8 years).

AFSM vs SPY growth

Month-end closes. Both lines start at 0% in the first month shown, so the gap between them is the difference in growth across that window. The full view covers the 6.8 years both funds cover.

AFSM vs SPY Performance

First Trust Active Factor Small Cap ETF (AFSM) is an ETF from First Trust Portfolios (US) and State Street SPDR S&P 500 ETF Trust (SPY) is an ETF from State Street Investment Management. Over the past year AFSM returned +24.70% while SPY returned +19.97%. Year to date, AFSM is up 23.12% versus a gain of 13.34% for SPY.

Over three years, AFSM compounded at +18.76% per year against +21.20% for SPY; over five years the annualized figures are +9.75% and +12.81% respectively. Across the full 7-year window we track, SPY has the edge at +15.61% annualized vs +11.71%.

Past performance does not guarantee future results.

Risk: Volatility and Drawdowns

AFSM has been the more volatile fund, with annualized monthly volatility of 21.9% compared with 16.9% for SPY. 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 -43.5% for AFSM and -34.1% for SPY. Drawdown depth is what each fund did in the worst stretch of the window measured above.

The two funds' monthly returns correlate at 0.84. They usually move together, but the gap leaves some room for diversification.

Fees and Cost Over Time

AFSM charges 0.75% per year while SPY charges 0.09%. On a $10,000 position that is $75 vs $9 annually, a gap of $66 per year that compounds over a long holding period. On income, AFSM currently yields 0.50% against 1.01% for SPY.

Holdings Overlap

AFSM already in SPY1.0%
SPY already in AFSM0.1%

1.0% of AFSM's money is in holdings SPY also owns. 0.1% of SPY's money is in holdings AFSM also owns.

We cannot see either book well enough to say how much of this pair is duplicated.

2 positions in common, counted across the 333 positions we hold weights for in AFSM and 503 in SPY, against full books of 670 and 505.

What only one of them owns

Our book lists 491 positions for SPY that do not appear in our book for AFSM (99.3% of the fund), and 311 for AFSM that do not appear in SPY (91.3%).

Some of those will be the same company recorded under a different code in one of the two books, so the real difference in what you would own is no larger than this and may be smaller. We do not name the individual positions here for that reason.

Top Shared Holdings

StockWeight in AFSMWeight in SPYDifference
FIXComfort Systems Usa Inc Common Stock0.53%0.09%0.44%
EMEEmcor Group Inc (eme)0.46%0.05%0.41%

You are not choosing between two funds in isolation.

Whichever of AFSM and SPY you pick has to sit alongside everything else you own. Add the rest and see what the combination actually holds.

AFSMSPY

Free for up to 10 holdings. No account needed.

Frequently Asked Questions

Which is cheaper, AFSM or SPY?

AFSM has an expense ratio of 0.75% while SPY charges 0.09%. SPY is the cheaper option, by $66 a year on a $10,000 investment.

Which performed better, AFSM or SPY?

Over the past year AFSM returned +24.70% vs +19.97% for SPY, so AFSM leads on 1-year performance. Over the longest common window we track (7 years), AFSM annualized +11.71% vs +15.61% for SPY. Past performance does not guarantee future results. This is information, not a recommendation.

Which is riskier, AFSM or SPY?

AFSM has been the more volatile fund at 21.9% annualized versus 16.9% for SPY. Worst drawdown: AFSM -43.5% vs SPY -34.1%.

Should I hold both AFSM and SPY?

AFSM and SPY have a monthly-return correlation of 0.84, so their returns are far enough apart for the mix to behave differently from either one alone. This is information, not a recommendation.

Which pays a higher dividend, AFSM or SPY?

AFSM yields 0.50% while SPY yields 1.01%, so SPY currently pays the higher dividend yield.

Is SPY better than AFSM?

SPY has a lower expense ratio. AFSM led over 1Y, SPY over 3Y, 5Y and the full window. AFSM is less concentrated, with 8.2% of the fund in its ten largest positions against 38.0%. Which one suits a particular account depends on what it is for. This is information, not a recommendation.