AREA vs SPY
Harbor AlphaEdge Next Generation REITs ETF vs State Street SPDR S&P 500 ETF Trust
Quick Verdict
SPY has a lower expense ratio. SPY delivered stronger 1-year returns. SPY offers more diversification with 505 holdings.
Side-by-Side Comparison
| Metric | AREA | SPY | Winner |
|---|---|---|---|
| Expense Ratio | 0.50% | 0.09% | |
| AUM | $2M | $821.1B | |
| Dividend Yield | 0.66% | 1.01% | |
| Holdings | 86 | 505 | |
| YTD Return | +8.88% | +12.93% | |
| 1Y Return | +7.75% | +20.62% | |
| 3Y Return (annualized) | - | +22.00% | |
| 5Y Return (annualized) | - | +13.33% | |
| Volatility (annualized) | 13.0% | 15.3% | |
| Max Drawdown | -21.1% | -56.5% | |
| Fund Family | Harbor Funds | State Street Investment Management | |
| Category | Equity | Equity | |
| Inception | Sep 3, 2024 | Jan 22, 1993 |
AREA vs SPY Performance
Harbor AlphaEdge Next Generation REITs ETF (AREA) is a ETF from Harbor Funds and State Street SPDR S&P 500 ETF Trust (SPY) is a ETF from State Street Investment Management. Over the past year AREA returned +7.75% while SPY returned +20.62%. Year to date, AREA is up 8.88% versus a gain of 12.93% for SPY.
Risk: Volatility and Drawdowns
SPY has been the more volatile fund, with annualized monthly volatility of 15.3% compared with 13.0% for AREA. 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 -21.1% for AREA 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 0.28. They move independently enough that combining them can meaningfully diversify a portfolio.
Fees and Cost Over Time
AREA charges 0.50% per year while SPY charges 0.09%. On a $10,000 position that is $50 vs $9 annually, a gap of $41 per year that compounds over a long holding period. On income, AREA currently yields 0.66% against 1.01% for SPY.
Holdings Overlap
AREA and SPY share 15 holdings out of 527 unique holdings combined, representing a 1.1% weight overlap.
Moderate overlap means holding both could provide meaningful diversification benefits.
Frequently Asked Questions
Which is cheaper, AREA or SPY?
AREA has an expense ratio of 0.50% while SPY charges 0.09%. SPY is the cheaper option. On a $10,000 investment, that is $41 per year of difference.
Which performed better, AREA or SPY?
Over the past year AREA returned +7.75% vs +20.62% for SPY, so SPY leads on 1-year performance. Over the longest common window we track (2 years), AREA annualized +1.50% vs +8.82% for SPY. Past performance does not guarantee future results.
Which is riskier, AREA or SPY?
SPY has been the more volatile fund at 15.3% annualized versus 13.0% for AREA. Worst drawdown: AREA -21.1% vs SPY -56.5%.
Should I hold both AREA and SPY?
AREA and SPY have a monthly-return correlation of 0.28, so combining them can provide real diversification depending on your allocation goals.
What is the holdings overlap between AREA and SPY?
AREA and SPY share 15 common holdings with a 1.1% weight overlap. Combined, they hold 527 unique securities.
Which pays a higher dividend, AREA or SPY?
AREA yields 0.66% while SPY yields 1.01%, so SPY currently pays the higher dividend yield.
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