CAOS vs SPY

Quick Verdict

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

Lower Fees: SPYHigher Returns: SPYMore Diversified: SPY

Side-by-Side Comparison

MetricCAOSSPYWinner
Expense Ratio0.63%0.09%
AUM$719M$789.1B
Dividend Yield0.00%1.01%
Holdings17505
YTD Return+0.79%+13.79%
1Y Return+1.50%+23.66%
3Y Return (annualized)+3.48%+21.40%
5Y Return (annualized)-+13.37%
Volatility (annualized)2.0%15.3%
Max Drawdown-3.6%-56.5%
Fund FamilyAlpha ArchitectState Street Investment Management
CategoryAlternativeEquity
InceptionMar 6, 2023Jan 22, 1993

CAOS vs SPY Performance

Alpha Architect Tail Risk ETF (CAOS) is a ETF from Alpha Architect and State Street SPDR S&P 500 ETF Trust (SPY) is a ETF from State Street Investment Management. Over the past year CAOS returned +1.50% while SPY returned +23.66%. Year to date, CAOS is up 0.79% versus a gain of 13.79% for SPY.

Over three years, CAOS compounded at +3.48% per year against +21.40% for SPY. Across the full 3-year window we track, SPY has the edge at +8.85% annualized vs +4.82%. 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 2.0% for CAOS. 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 -3.6% for CAOS 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 0.33. They move independently enough that combining them can meaningfully diversify a portfolio.

Fees and Cost Over Time

CAOS charges 0.63% per year while SPY charges 0.09%. On a $10,000 position that is $63 vs $9 annually, a gap of $54 per year that compounds over a long holding period. On income, CAOS currently yields 0.00% against 1.01% for SPY.

Frequently Asked Questions

Which is cheaper, CAOS or SPY?

CAOS has an expense ratio of 0.63% while SPY charges 0.09%. SPY is the cheaper option. On a $10,000 investment, that is $54 per year of difference.

Which performed better, CAOS or SPY?

Over the past year CAOS returned +1.50% vs +23.66% for SPY, so SPY leads on 1-year performance. Over the longest common window we track (3 years), CAOS annualized +4.82% vs +8.85% for SPY. Past performance does not guarantee future results.

Which is riskier, CAOS or SPY?

SPY has been the more volatile fund at 15.3% annualized versus 2.0% for CAOS. Worst drawdown: CAOS -3.6% vs SPY -56.5%.

Should I hold both CAOS and SPY?

CAOS and SPY have a monthly-return correlation of 0.33, so combining them can provide real diversification depending on your allocation goals.

Which pays a higher dividend, CAOS or SPY?

CAOS yields 0.00% while SPY yields 1.01%, so SPY currently pays the higher dividend yield.

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