BTO vs SPY
John Hancock Financial Opportunities 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 | BTO | SPY | Winner |
|---|---|---|---|
| Expense Ratio | 2.96% | 0.09% | |
| AUM | $709M | $821.1B | |
| Dividend Yield | 6.18% | 1.01% | |
| Holdings | 184 | 505 | |
| YTD Return | +17.11% | +12.68% | |
| 1Y Return | +19.55% | +21.82% | |
| 3Y Return (annualized) | +24.15% | +21.98% | |
| 5Y Return (annualized) | +5.83% | +12.89% | |
| Volatility (annualized) | 31.1% | 15.3% | |
| Max Drawdown | -95.5% | -56.5% | |
| Fund Family | John Hancock Investment Management | State Street Investment Management | |
| Category | Equity | Equity | |
| Inception | Aug 18, 1994 | Jan 22, 1993 |
BTO vs SPY Performance
John Hancock Financial Opportunities Fund (BTO) is a ETF from John Hancock Investment Management and State Street SPDR S&P 500 ETF Trust (SPY) is a ETF from State Street Investment Management. Over the past year BTO returned +19.55% while SPY returned +21.82%. Year to date, BTO is up 17.11% versus a gain of 12.68% for SPY.
Over three years, BTO compounded at +24.15% per year against +21.98% for SPY; over five years the annualized figures are +5.83% and +12.89% respectively. Across the full 23-year window we track, SPY has the edge at +8.81% annualized vs -4.15%. Past performance does not guarantee future results.
Risk: Volatility and Drawdowns
BTO has been the more volatile fund, with annualized monthly volatility of 31.1% 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 -95.5% for BTO 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 0.59. They move independently enough that combining them can meaningfully diversify a portfolio.
Fees and Cost Over Time
BTO charges 2.96% per year while SPY charges 0.09%. On a $10,000 position that is $296 vs $9 annually, a gap of $287 per year that compounds over a long holding period. On income, BTO currently yields 6.18% against 1.01% for SPY.
Holdings Overlap
BTO and SPY share 9 holdings out of 629 unique holdings combined, representing a 0.6% weight overlap.
Moderate overlap means holding both could provide meaningful diversification benefits.
Frequently Asked Questions
Which is cheaper, BTO or SPY?
BTO has an expense ratio of 2.96% while SPY charges 0.09%. SPY is the cheaper option. On a $10,000 investment, that is $287 per year of difference.
Which performed better, BTO or SPY?
Over the past year BTO returned +19.55% vs +21.82% for SPY, so SPY leads on 1-year performance. Over the longest common window we track (23 years), BTO annualized -4.15% vs +8.81% for SPY. Past performance does not guarantee future results.
Which is riskier, BTO or SPY?
BTO has been the more volatile fund at 31.1% annualized versus 15.3% for SPY. Worst drawdown: BTO -95.5% vs SPY -56.5%.
Should I hold both BTO and SPY?
BTO and SPY have a monthly-return correlation of 0.59, so combining them can provide real diversification depending on your allocation goals.
What is the holdings overlap between BTO and SPY?
BTO and SPY share 9 common holdings with a 0.6% weight overlap. Combined, they hold 629 unique securities.
Which pays a higher dividend, BTO or SPY?
BTO yields 6.18% while SPY yields 1.01%, so BTO currently pays the higher dividend yield.
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