CZA vs SPY
Invesco Zacks 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 | CZA | SPY | Winner |
|---|---|---|---|
| Expense Ratio | 0.69% | 0.09% | |
| AUM | $183M | $814.4B | |
| Dividend Yield | 1.37% | 1.01% | |
| Holdings | 103 | 505 | |
| YTD Return | +11.23% | +12.10% | |
| 1Y Return | +16.14% | +20.30% | |
| 3Y Return (annualized) | +13.49% | +20.82% | |
| 5Y Return (annualized) | +6.79% | +12.53% | |
| Volatility (annualized) | 16.6% | 15.3% | |
| Max Drawdown | -53.2% | -56.5% | |
| Fund Family | Invesco (US) | State Street Investment Management | |
| Category | Equity | Equity | |
| Inception | Apr 2, 2007 | Jan 22, 1993 |
CZA vs SPY Performance
Invesco Zacks Mid-Cap ETF (CZA) is a ETF from Invesco (US) and State Street SPDR S&P 500 ETF Trust (SPY) is a ETF from State Street Investment Management. Over the past year CZA returned +16.14% while SPY returned +20.30%. Year to date, CZA is up 11.23% versus a gain of 12.10% for SPY.
Over three years, CZA compounded at +13.49% per year against +20.82% for SPY; over five years the annualized figures are +6.79% and +12.53% respectively. Across the full 19-year window we track, CZA has the edge at +9.59% annualized vs +8.78%. Past performance does not guarantee future results.
Risk: Volatility and Drawdowns
CZA has been the more volatile fund, with annualized monthly volatility of 16.6% 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 -53.2% for CZA 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 0.89. They usually move together, but the gap leaves some room for diversification.
Fees and Cost Over Time
CZA charges 0.69% per year while SPY charges 0.09%. On a $10,000 position that is $69 vs $9 annually, a gap of $60 per year that compounds over a long holding period. On income, CZA currently yields 1.37% against 1.01% for SPY.
Holdings Overlap
CZA and SPY share 42 holdings out of 563 unique holdings combined, representing a 1.7% weight overlap.
Moderate overlap means holding both could provide meaningful diversification benefits.
Frequently Asked Questions
Which is cheaper, CZA or SPY?
CZA has an expense ratio of 0.69% while SPY charges 0.09%. SPY is the cheaper option. On a $10,000 investment, that is $60 per year of difference.
Which performed better, CZA or SPY?
Over the past year CZA returned +16.14% vs +20.30% for SPY, so SPY leads on 1-year performance. Over the longest common window we track (19 years), CZA annualized +9.59% vs +8.78% for SPY. Past performance does not guarantee future results.
Which is riskier, CZA or SPY?
CZA has been the more volatile fund at 16.6% annualized versus 15.3% for SPY. Worst drawdown: CZA -53.2% vs SPY -56.5%.
Should I hold both CZA and SPY?
CZA and SPY have a monthly-return correlation of 0.89, so combining them can provide real diversification depending on your allocation goals.
What is the holdings overlap between CZA and SPY?
CZA and SPY share 42 common holdings with a 1.7% weight overlap. Combined, they hold 563 unique securities.
Which pays a higher dividend, CZA or SPY?
CZA yields 1.37% while SPY yields 1.01%, so CZA currently pays the higher dividend yield.
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