BAFE vs SPY
Brown Advisory Flexible Equity 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 503 holdings.
Side-by-Side Comparison
| Metric | BAFE | SPY | Winner |
|---|---|---|---|
| Expense Ratio | 0.54% | 0.09% | |
| AUM | $1.7B | $789.1B | |
| Dividend Yield | 0.28% | 1.01% | |
| Holdings | 45 | 505 | |
| YTD Return | +11.17% | +13.75% | |
| 1Y Return | +17.27% | +22.91% | |
| 3Y Return (annualized) | - | +21.67% | |
| 5Y Return (annualized) | - | +13.32% | |
| Volatility (annualized) | 13.8% | 15.3% | |
| Max Drawdown | -18.4% | -56.5% | |
| Fund Family | Brown Advisory | State Street Investment Management | |
| Category | Equity | Equity | |
| Inception | Nov 18, 2024 | Jan 22, 1993 |
BAFE vs SPY Performance
Brown Advisory Flexible Equity ETF (BAFE) is a ETF from Brown Advisory and State Street SPDR S&P 500 ETF Trust (SPY) is a ETF from State Street Investment Management. Over the past year BAFE returned +17.27% while SPY returned +22.91%. Year to date, BAFE is up 11.17% versus a gain of 13.75% for SPY.
Risk: Volatility and Drawdowns
SPY has been the more volatile fund, with annualized monthly volatility of 15.3% compared with 13.8% for BAFE. 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 -18.4% for BAFE 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 0.90. They move almost in lockstep, so holding both mostly duplicates the same exposure.
Fees and Cost Over Time
BAFE charges 0.54% per year while SPY charges 0.09%. On a $10,000 position that is $54 vs $9 annually, a gap of $45 per year that compounds over a long holding period. On income, BAFE currently yields 0.28% against 1.01% for SPY.
Holdings Overlap
BAFE and SPY share 34 holdings out of 513 unique holdings combined, representing a 29.9% weight overlap.
Moderate overlap means holding both could provide meaningful diversification benefits.
Frequently Asked Questions
Which is cheaper, BAFE or SPY?
BAFE has an expense ratio of 0.54% while SPY charges 0.09%. SPY is the cheaper option. On a $10,000 investment, that is $45 per year of difference.
Which performed better, BAFE or SPY?
Over the past year BAFE returned +17.27% vs +22.91% for SPY, so SPY leads on 1-year performance. Over the longest common window we track (2 years), BAFE annualized +12.06% vs +8.85% for SPY. Past performance does not guarantee future results.
Which is riskier, BAFE or SPY?
SPY has been the more volatile fund at 15.3% annualized versus 13.8% for BAFE. Worst drawdown: BAFE -18.4% vs SPY -56.5%.
Should I hold both BAFE and SPY?
BAFE and SPY have a monthly-return correlation of 0.90, so they move almost identically. Holding both adds little diversification - most investors pick one, usually on fees or the specific index tracked.
What is the holdings overlap between BAFE and SPY?
BAFE and SPY share 34 common holdings with a 29.9% weight overlap. Combined, they hold 513 unique securities.
Which pays a higher dividend, BAFE or SPY?
BAFE yields 0.28% while SPY yields 1.01%, so SPY currently pays the higher dividend yield.
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