BAFE vs SPY

BAFE vs SPY

Which is better, BAFE or SPY?

SPY has been ahead.

SPY has a lower expense ratio. SPY led over 1Y and the full window. The two have moved almost in lockstep, correlation 0.90. SPY is less concentrated, with 37.8% of the fund in its ten largest positions against 42.7%.

Lower Fees: SPYHigher Returns: SPYLess Concentrated: SPY

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

MetricBAFESPY
Expense Ratio0.54%0.09%Best
AUM$1.7B$804.7B
Dividend Yield0.28%0.98%
Holdings46505
YTD Return+7.62%+12.09%Best
1Y Return+8.18%+16.29%Best
3Y Return (annualized)-+21.20%
5Y Return (annualized)-+13.37%
Volatility (annualized)13.5%12.7%Best
Max Drawdown-18.4%Best-18.8%
$10,000 over 1.8 years$11,747$13,154Best
Top 10 Weight42.7%37.8%Best
Fund FamilyBrown AdvisoryState Street Investment Management
CategoryEquityEquity
StyleLarge Cap BlendLarge Cap Blend
InceptionNov 18, 2024Jan 22, 1993

Volatility and max drawdown, and the $10,000 over 1.8 years row, are measured over the window both funds cover: Nov 18, 2024 to Sep 18, 2026 (1.8 years).

BAFE 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 1.8 years both funds cover.

BAFE vs SPY Performance

Brown Advisory Flexible Equity ETF (BAFE) is an ETF from Brown Advisory and State Street SPDR S&P 500 ETF Trust (SPY) is an ETF from State Street Investment Management. Over the past year BAFE returned +8.18% while SPY returned +16.29%. Year to date, BAFE is up 7.62% versus a gain of 12.09% for SPY.

Past performance does not guarantee future results.

Risk: Volatility and Drawdowns

BAFE has been the more volatile fund, with annualized monthly volatility of 13.5% compared with 12.7% 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 -18.4% for BAFE and -18.8% 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 0.90. 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 0.98% for SPY.

Holdings Overlap

BAFE already in SPY79.3%
SPY already in BAFE40.3%

79.3% of BAFE's money is in holdings SPY also owns. 40.3% of SPY's money is in holdings BAFE also owns.

Most of BAFE is already inside SPY. Owning both mostly buys the same companies twice.

35 positions in common, counted across the 44 positions we hold weights for in BAFE and 504 in SPY, against full books of 46 and 505.

What only one of them owns

Our book lists 462 positions for SPY that do not appear in our book for BAFE (59.1% of the fund), and 3 for BAFE that do not appear in SPY (4.2%).

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 BAFEWeight in SPYDifference
MSFTMicrosoft Corp6.36%5.66%0.70%
NVDANvidia Corp3.28%8.01%4.73%
AAPLApple, Inc1.86%7.26%5.40%
AMZNAmazon.Com Inc4.52%3.79%0.73%
GOOGLAlphabet Inc,class A3.69%2.99%0.70%
GOOGAlphabet Inc3.52%2.39%1.13%
METAMeta Platforms Inc3.69%1.93%1.76%
VVisa Inc Class A4.36%0.94%3.42%
BRK.BBerkshire Hathaway Inc Brk/B Us Equity3.29%1.40%1.89%
MAMastercard Inc3.93%0.71%3.22%

79.3% of BAFE is already inside SPY.

You probably hold more than these two. Add the rest and see how much of the whole book is the same companies twice.

BAFESPY

Free for up to 10 holdings. No account needed.

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, by $45 a year on a $10,000 investment.

Which performed better, BAFE or SPY?

Over the past year BAFE returned +8.18% vs +16.29% for SPY, so SPY leads on 1-year performance. Over the longest common window we track (2 years), BAFE annualized +9.36% vs +16.45% for SPY. Past performance does not guarantee future results. This is information, not a recommendation.

Which is riskier, BAFE or SPY?

BAFE has been the more volatile fund at 13.5% annualized versus 12.7% for SPY. Worst drawdown: BAFE -18.4% vs SPY -18.8%.

Should I hold both BAFE and SPY?

BAFE and SPY have a monthly-return correlation of 0.90, so they move almost identically. What is left to separate them is the fee and the index each one tracks. This is information, not a recommendation.

What is the holdings overlap between BAFE and SPY?

79.3% of BAFE's money is in holdings SPY also owns. 40.3% of SPY's is in holdings BAFE also owns. They hold 35 positions in common, counted across the 44 positions we hold weights for in BAFE and 504 in SPY.

Which pays a higher dividend, BAFE or SPY?

BAFE yields 0.28% while SPY yields 0.98%, so SPY currently pays the higher dividend yield.

Is SPY better than BAFE?

SPY has a lower expense ratio. SPY led over 1Y and the full window. The two have moved almost in lockstep, correlation 0.90. SPY is less concentrated, with 37.8% of the fund in its ten largest positions against 42.7%. Which one suits a particular account depends on what it is for. This is information, not a recommendation.