CGMM vs SPY
Capital Group US Small and Mid Cap ETF 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 | CGMM | SPY | Winner |
|---|---|---|---|
| Expense Ratio | 0.51% | 0.09% | |
| AUM | $3.5B | $821.1B | |
| Dividend Yield | 0.38% | 1.01% | |
| Holdings | 236 | 505 | |
| YTD Return | +13.38% | +12.68% | |
| 1Y Return | +20.68% | +21.82% | |
| 3Y Return (annualized) | - | +21.98% | |
| 5Y Return (annualized) | - | +12.89% | |
| Volatility (annualized) | 14.3% | 15.3% | |
| Max Drawdown | -21.0% | -56.5% | |
| Fund Family | Capital Group (US) | State Street Investment Management | |
| Category | Equity | Equity | |
| Inception | Jan 14, 2025 | Jan 22, 1993 |
CGMM vs SPY Performance
Capital Group US Small and Mid Cap ETF (CGMM) is a ETF from Capital Group (US) and State Street SPDR S&P 500 ETF Trust (SPY) is a ETF from State Street Investment Management. Over the past year CGMM returned +20.68% while SPY returned +21.82%. Year to date, CGMM is up 13.38% versus a gain of 12.68% for SPY.
Risk: Volatility and Drawdowns
SPY has been the more volatile fund, with annualized monthly volatility of 15.3% compared with 14.3% for CGMM. 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 -21.0% for CGMM 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 0.77. They usually move together, but the gap leaves some room for diversification.
Fees and Cost Over Time
CGMM charges 0.51% per year while SPY charges 0.09%. On a $10,000 position that is $51 vs $9 annually, a gap of $42 per year that compounds over a long holding period. On income, CGMM currently yields 0.38% against 1.01% for SPY.
Holdings Overlap
CGMM and SPY share 50 holdings out of 570 unique holdings combined, representing a 4.0% weight overlap.
Moderate overlap means holding both could provide meaningful diversification benefits.
Frequently Asked Questions
Which is cheaper, CGMM or SPY?
CGMM has an expense ratio of 0.51% while SPY charges 0.09%. SPY is the cheaper option. On a $10,000 investment, that is $42 per year of difference.
Which performed better, CGMM or SPY?
Over the past year CGMM returned +20.68% vs +21.82% for SPY, so SPY leads on 1-year performance. Over the longest common window we track (2 years), CGMM annualized +16.78% vs +8.81% for SPY. Past performance does not guarantee future results.
Which is riskier, CGMM or SPY?
SPY has been the more volatile fund at 15.3% annualized versus 14.3% for CGMM. Worst drawdown: CGMM -21.0% vs SPY -56.5%.
Should I hold both CGMM and SPY?
CGMM and SPY have a monthly-return correlation of 0.77, so combining them can provide real diversification depending on your allocation goals.
What is the holdings overlap between CGMM and SPY?
CGMM and SPY share 50 common holdings with a 4.0% weight overlap. Combined, they hold 570 unique securities.
Which pays a higher dividend, CGMM or SPY?
CGMM yields 0.38% while SPY yields 1.01%, so SPY currently pays the higher dividend yield.
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