EDOW vs SPY
First Trust Dow 30 Equal Weight 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 503 holdings.
Side-by-Side Comparison
| Metric | EDOW | SPY | Winner |
|---|---|---|---|
| Expense Ratio | 0.50% | 0.09% | |
| AUM | $311M | $789.1B | |
| Dividend Yield | 1.22% | 1.01% | |
| Holdings | 31 | 505 | |
| YTD Return | +12.49% | +13.68% | |
| 1Y Return | +21.18% | +21.53% | |
| 3Y Return (annualized) | +16.57% | +21.44% | |
| 5Y Return (annualized) | +9.99% | +13.18% | |
| Volatility (annualized) | 15.5% | 15.3% | |
| Max Drawdown | -33.7% | -56.5% | |
| Fund Family | First Trust Portfolios (US) | State Street Investment Management | |
| Category | Equity | Equity | |
| Inception | Aug 8, 2017 | Jan 22, 1993 |
EDOW vs SPY Performance
First Trust Dow 30 Equal Weight ETF (EDOW) is a ETF from First Trust Portfolios (US) and State Street SPDR S&P 500 ETF Trust (SPY) is a ETF from State Street Investment Management. Over the past year EDOW returned +21.18% while SPY returned +21.53%. Year to date, EDOW is up 12.49% versus a gain of 13.68% for SPY.
Over three years, EDOW compounded at +16.57% per year against +21.44% for SPY; over five years the annualized figures are +9.99% and +13.18% respectively. Across the full 9-year window we track, EDOW has the edge at +10.98% annualized vs +8.85%. Past performance does not guarantee future results.
Risk: Volatility and Drawdowns
EDOW has been the more volatile fund, with annualized monthly volatility of 15.5% 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 -33.7% for EDOW 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 0.92. They move almost in lockstep, so holding both mostly duplicates the same exposure.
Fees and Cost Over Time
EDOW charges 0.50% per year while SPY charges 0.09%. On a $10,000 position that is $50 vs $9 annually, a gap of $41 per year that compounds over a long holding period. On income, EDOW currently yields 1.22% against 1.01% for SPY.
Holdings Overlap
EDOW and SPY share 30 holdings out of 503 unique holdings combined, representing a 28.1% weight overlap.
Moderate overlap means holding both could provide meaningful diversification benefits.
Frequently Asked Questions
Which is cheaper, EDOW or SPY?
EDOW has an expense ratio of 0.50% while SPY charges 0.09%. SPY is the cheaper option. On a $10,000 investment, that is $41 per year of difference.
Which performed better, EDOW or SPY?
Over the past year EDOW returned +21.18% vs +21.53% for SPY, so SPY leads on 1-year performance. Over the longest common window we track (9 years), EDOW annualized +10.98% vs +8.85% for SPY. Past performance does not guarantee future results.
Which is riskier, EDOW or SPY?
EDOW has been the more volatile fund at 15.5% annualized versus 15.3% for SPY. Worst drawdown: EDOW -33.7% vs SPY -56.5%.
Should I hold both EDOW and SPY?
EDOW and SPY have a monthly-return correlation of 0.92, so they move almost identically. Holding both adds little diversification - most investors pick one, usually on fees or the specific index tracked.
What is the holdings overlap between EDOW and SPY?
EDOW and SPY share 30 common holdings with a 28.1% weight overlap. Combined, they hold 503 unique securities.
Which pays a higher dividend, EDOW or SPY?
EDOW yields 1.22% while SPY yields 1.01%, so EDOW currently pays the higher dividend yield.
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