Quick Verdict

SPY has a lower expense ratio. BBEM delivered stronger 1-year returns. BBEM offers more diversification with 889 holdings.

Lower Fees: SPYHigher Returns: BBEMMore Diversified: BBEM

Side-by-Side Comparison

MetricBBEMSPYWinner
Expense Ratio0.15%0.09%
AUM$748M$789.1B
Dividend Yield2.52%1.01%
Holdings1,132505
YTD Return+15.82%+13.79%
1Y Return+32.69%+23.66%
3Y Return (annualized)+19.42%+21.40%
5Y Return (annualized)-+13.37%
Volatility (annualized)15.1%15.3%
Max Drawdown-17.4%-56.5%
Fund FamilyJ.P. Morgan Asset ManagementState Street Investment Management
CategoryEquityEquity
InceptionMay 10, 2023Jan 22, 1993

BBEM vs SPY Performance

JPMorgan BetaBuilders Emerging Markets Equity ETF (BBEM) is a ETF from J.P. Morgan Asset Management and State Street SPDR S&P 500 ETF Trust (SPY) is a ETF from State Street Investment Management. Over the past year BBEM returned +32.69% while SPY returned +23.66%. Year to date, BBEM is up 15.82% versus a gain of 13.79% for SPY.

Over three years, BBEM compounded at +19.42% per year against +21.40% for SPY. Across the full 3-year window we track, BBEM has the edge at +19.55% annualized vs +8.85%. Past performance does not guarantee future results.

Risk: Volatility and Drawdowns

SPY has been the more volatile fund, with annualized monthly volatility of 15.3% compared with 15.1% for BBEM. 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 -17.4% for BBEM 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 0.67. They move independently enough that combining them can meaningfully diversify a portfolio.

Fees and Cost Over Time

BBEM charges 0.15% per year while SPY charges 0.09%. On a $10,000 position that is $15 vs $9 annually, a gap of $6 per year that compounds over a long holding period. On income, BBEM currently yields 2.52% against 1.01% for SPY.

Holdings Overlap

0.1%overlap

BBEM and SPY share 2 holdings out of 1390 unique holdings combined, representing a 0.1% weight overlap.

Moderate overlap means holding both could provide meaningful diversification benefits.

Top Shared Holdings

StockWeight in BBEMWeight in SPYDifference
PG0.01%0.54%0.53%
CMI0.06%0.14%0.08%

Frequently Asked Questions

Which is cheaper, BBEM or SPY?

BBEM has an expense ratio of 0.15% while SPY charges 0.09%. SPY is the cheaper option. On a $10,000 investment, that is $6 per year of difference.

Which performed better, BBEM or SPY?

Over the past year BBEM returned +32.69% vs +23.66% for SPY, so BBEM leads on 1-year performance. Over the longest common window we track (3 years), BBEM annualized +19.55% vs +8.85% for SPY. Past performance does not guarantee future results.

Which is riskier, BBEM or SPY?

SPY has been the more volatile fund at 15.3% annualized versus 15.1% for BBEM. Worst drawdown: BBEM -17.4% vs SPY -56.5%.

Should I hold both BBEM and SPY?

BBEM and SPY have a monthly-return correlation of 0.67, so combining them can provide real diversification depending on your allocation goals.

What is the holdings overlap between BBEM and SPY?

BBEM and SPY share 2 common holdings with a 0.1% weight overlap. Combined, they hold 1390 unique securities.

Which pays a higher dividend, BBEM or SPY?

BBEM yields 2.52% while SPY yields 1.01%, so BBEM currently pays the higher dividend yield.

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