AVK vs SPY
Advent Convertible and Income Fund 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 | AVK | SPY | Winner |
|---|---|---|---|
| Expense Ratio | 2.77% | 0.09% | |
| AUM | $623M | $821.1B | |
| Dividend Yield | 10.48% | 1.01% | |
| Holdings | 435 | 505 | |
| YTD Return | +7.94% | +12.22% | |
| 1Y Return | +14.19% | +20.83% | |
| 3Y Return (annualized) | +16.23% | +21.70% | |
| 5Y Return (annualized) | +4.85% | +12.98% | |
| Volatility (annualized) | 20.9% | 15.3% | |
| Max Drawdown | -72.6% | -56.5% | |
| Fund Family | Guggenheim Investments | State Street Investment Management | |
| Category | Convertible | Equity | |
| Inception | Apr 29, 2003 | Jan 22, 1993 |
AVK vs SPY Performance
Advent Convertible and Income Fund (AVK) is a ETF from Guggenheim Investments and State Street SPDR S&P 500 ETF Trust (SPY) is a ETF from State Street Investment Management. Over the past year AVK returned +14.19% while SPY returned +20.83%. Year to date, AVK is up 7.94% versus a gain of 12.22% for SPY.
Over three years, AVK compounded at +16.23% per year against +21.70% for SPY; over five years the annualized figures are +4.85% and +12.98% respectively. Across the full 23-year window we track, SPY has the edge at +8.79% annualized vs -0.02%. Past performance does not guarantee future results.
Risk: Volatility and Drawdowns
AVK has been the more volatile fund, with annualized monthly volatility of 20.9% compared with 15.3% 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 -72.6% for AVK 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 0.81. They usually move together, but the gap leaves some room for diversification.
Fees and Cost Over Time
AVK charges 2.77% per year while SPY charges 0.09%. On a $10,000 position that is $277 vs $9 annually, a gap of $268 per year that compounds over a long holding period. On income, AVK currently yields 10.48% against 1.01% for SPY.
Holdings Overlap
AVK and SPY share 19 holdings out of 750 unique holdings combined, representing a 5.4% weight overlap.
Moderate overlap means holding both could provide meaningful diversification benefits.
Frequently Asked Questions
Which is cheaper, AVK or SPY?
AVK has an expense ratio of 2.77% while SPY charges 0.09%. SPY is the cheaper option. On a $10,000 investment, that is $268 per year of difference.
Which performed better, AVK or SPY?
Over the past year AVK returned +14.19% vs +20.83% for SPY, so SPY leads on 1-year performance. Over the longest common window we track (23 years), AVK annualized -0.02% vs +8.79% for SPY. Past performance does not guarantee future results.
Which is riskier, AVK or SPY?
AVK has been the more volatile fund at 20.9% annualized versus 15.3% for SPY. Worst drawdown: AVK -72.6% vs SPY -56.5%.
Should I hold both AVK and SPY?
AVK and SPY have a monthly-return correlation of 0.81, so combining them can provide real diversification depending on your allocation goals.
What is the holdings overlap between AVK and SPY?
AVK and SPY share 19 common holdings with a 5.4% weight overlap. Combined, they hold 750 unique securities.
Which pays a higher dividend, AVK or SPY?
AVK yields 10.48% while SPY yields 1.01%, so AVK currently pays the higher dividend yield.
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