CTA vs SPY
Simplify Managed Futures Strategy 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 | CTA | SPY | Winner |
|---|---|---|---|
| Expense Ratio | 0.75% | 0.09% | |
| AUM | $1.6B | $814.4B | |
| Dividend Yield | 5.41% | 1.01% | |
| Holdings | 126 | 505 | |
| YTD Return | +7.62% | +12.87% | |
| 1Y Return | +4.85% | +21.13% | |
| 3Y Return (annualized) | +9.90% | +20.86% | |
| 5Y Return (annualized) | - | +12.69% | |
| Volatility (annualized) | 16.9% | 15.3% | |
| Max Drawdown | -20.8% | -56.5% | |
| Fund Family | Simplify Exchange Traded Funds | State Street Investment Management | |
| Category | Alternative | Equity | |
| Inception | Mar 1, 2022 | Jan 22, 1993 |
CTA vs SPY Performance
Simplify Managed Futures Strategy ETF (CTA) is a ETF from Simplify Exchange Traded Funds and State Street SPDR S&P 500 ETF Trust (SPY) is a ETF from State Street Investment Management. Over the past year CTA returned +4.85% while SPY returned +21.13%. Year to date, CTA is up 7.62% versus a gain of 12.87% for SPY.
Over three years, CTA compounded at +9.90% per year against +20.86% for SPY. Across the full 5-year window we track, SPY has the edge at +8.80% annualized vs +8.45%. Past performance does not guarantee future results.
Risk: Volatility and Drawdowns
CTA has been the more volatile fund, with annualized monthly volatility of 16.9% 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 -20.8% for CTA 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 -0.26. They move independently enough that combining them can meaningfully diversify a portfolio.
Fees and Cost Over Time
CTA charges 0.75% per year while SPY charges 0.09%. On a $10,000 position that is $75 vs $9 annually, a gap of $66 per year that compounds over a long holding period. On income, CTA currently yields 5.41% against 1.01% for SPY.
Holdings Overlap
CTA and SPY share 0 holdings out of 505 unique holdings combined, representing a 0.0% weight overlap.
Moderate overlap means holding both could provide meaningful diversification benefits.
Frequently Asked Questions
Which is cheaper, CTA or SPY?
CTA has an expense ratio of 0.75% while SPY charges 0.09%. SPY is the cheaper option. On a $10,000 investment, that is $66 per year of difference.
Which performed better, CTA or SPY?
Over the past year CTA returned +4.85% vs +21.13% for SPY, so SPY leads on 1-year performance. Over the longest common window we track (5 years), CTA annualized +8.45% vs +8.80% for SPY. Past performance does not guarantee future results.
Which is riskier, CTA or SPY?
CTA has been the more volatile fund at 16.9% annualized versus 15.3% for SPY. Worst drawdown: CTA -20.8% vs SPY -56.5%.
Should I hold both CTA and SPY?
CTA and SPY have a monthly-return correlation of -0.26, so combining them can provide real diversification depending on your allocation goals.
What is the holdings overlap between CTA and SPY?
CTA and SPY share 0 common holdings with a 0.0% weight overlap. Combined, they hold 505 unique securities.
Which pays a higher dividend, CTA or SPY?
CTA yields 5.41% while SPY yields 1.01%, so CTA currently pays the higher dividend yield.
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