BUSA vs SPY

Quick Verdict

SPY has a lower expense ratio. BUSA delivered stronger 1-year returns. SPY offers more diversification with 503 holdings.

Lower Fees: SPYHigher Returns: BUSAMore Diversified: SPY

Side-by-Side Comparison

MetricBUSASPYWinner
Expense Ratio0.60%0.09%
AUM$311M$789.1B
Dividend Yield1.46%1.01%
Holdings65505
YTD Return+13.24%+13.39%
1Y Return+26.24%+22.52%
3Y Return (annualized)-+21.36%
5Y Return (annualized)-+13.19%
Volatility (annualized)12.2%15.3%
Max Drawdown-14.2%-56.5%
Fund FamilyBrandes Investment PartnersState Street Investment Management
CategoryEquityEquity
InceptionOct 3, 2023Jan 22, 1993

BUSA vs SPY Performance

Brandes US Value ETF (BUSA) is a ETF from Brandes Investment Partners and State Street SPDR S&P 500 ETF Trust (SPY) is a ETF from State Street Investment Management. Over the past year BUSA returned +26.24% while SPY returned +22.52%. Year to date, BUSA is up 13.24% versus a gain of 13.39% for SPY.

Risk: Volatility and Drawdowns

SPY has been the more volatile fund, with annualized monthly volatility of 15.3% compared with 12.2% for BUSA. 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 -14.2% for BUSA 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 0.63. They move independently enough that combining them can meaningfully diversify a portfolio.

Fees and Cost Over Time

BUSA charges 0.60% per year while SPY charges 0.09%. On a $10,000 position that is $60 vs $9 annually, a gap of $51 per year that compounds over a long holding period. On income, BUSA currently yields 1.46% against 1.01% for SPY.

Holdings Overlap

10.3%overlap

BUSA and SPY share 47 holdings out of 520 unique holdings combined, representing a 10.3% weight overlap.

Moderate overlap means holding both could provide meaningful diversification benefits.

Top Shared Holdings

StockWeight in BUSAWeight in SPYDifference
GOOG1.97%2.66%0.69%
BAC2.77%0.60%2.17%
MRK2.67%0.48%2.19%
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Frequently Asked Questions

Which is cheaper, BUSA or SPY?

BUSA has an expense ratio of 0.60% while SPY charges 0.09%. SPY is the cheaper option. On a $10,000 investment, that is $51 per year of difference.

Which performed better, BUSA or SPY?

Over the past year BUSA returned +26.24% vs +22.52% for SPY, so BUSA leads on 1-year performance. Over the longest common window we track (3 years), BUSA annualized +19.61% vs +8.84% for SPY. Past performance does not guarantee future results.

Which is riskier, BUSA or SPY?

SPY has been the more volatile fund at 15.3% annualized versus 12.2% for BUSA. Worst drawdown: BUSA -14.2% vs SPY -56.5%.

Should I hold both BUSA and SPY?

BUSA and SPY have a monthly-return correlation of 0.63, so combining them can provide real diversification depending on your allocation goals.

What is the holdings overlap between BUSA and SPY?

BUSA and SPY share 47 common holdings with a 10.3% weight overlap. Combined, they hold 520 unique securities.

Which pays a higher dividend, BUSA or SPY?

BUSA yields 1.46% while SPY yields 1.01%, so BUSA currently pays the higher dividend yield.

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