EFFE vs SPY
Harbor Osmosis Emerging Markets Resource Efficient ETF vs State Street SPDR S&P 500 ETF Trust
Quick Verdict
SPY has a lower expense ratio. EFFE delivered stronger 1-year returns. SPY offers more diversification with 505 holdings.
Side-by-Side Comparison
| Metric | EFFE | SPY | Winner |
|---|---|---|---|
| Expense Ratio | 0.69% | 0.09% | |
| AUM | $146M | $821.1B | |
| Dividend Yield | 4.13% | 1.01% | |
| Holdings | 99 | 505 | |
| YTD Return | +19.97% | +14.24% | |
| 1Y Return | +27.05% | +21.71% | |
| 3Y Return (annualized) | - | +22.10% | |
| 5Y Return (annualized) | - | +13.21% | |
| Volatility (annualized) | 19.4% | 15.3% | |
| Max Drawdown | -16.3% | -56.5% | |
| Fund Family | Harbor Funds | State Street Investment Management | |
| Category | Equity | Equity | |
| Inception | Dec 17, 2024 | Jan 22, 1993 |
EFFE vs SPY Performance
Harbor Osmosis Emerging Markets Resource Efficient ETF (EFFE) is a ETF from Harbor Funds and State Street SPDR S&P 500 ETF Trust (SPY) is a ETF from State Street Investment Management. Over the past year EFFE returned +27.05% while SPY returned +21.71%. Year to date, EFFE is up 19.97% versus a gain of 14.24% for SPY.
Risk: Volatility and Drawdowns
EFFE has been the more volatile fund, with annualized monthly volatility of 19.4% 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 -16.3% for EFFE 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 0.71. They usually move together, but the gap leaves some room for diversification.
Fees and Cost Over Time
EFFE 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, EFFE currently yields 4.13% against 1.01% for SPY.
Holdings Overlap
EFFE and SPY share 0 holdings out of 580 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, EFFE or SPY?
EFFE 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, EFFE or SPY?
Over the past year EFFE returned +27.05% vs +21.71% for SPY, so EFFE leads on 1-year performance. Over the longest common window we track (2 years), EFFE annualized +27.02% vs +8.86% for SPY. Past performance does not guarantee future results.
Which is riskier, EFFE or SPY?
EFFE has been the more volatile fund at 19.4% annualized versus 15.3% for SPY. Worst drawdown: EFFE -16.3% vs SPY -56.5%.
Should I hold both EFFE and SPY?
EFFE and SPY have a monthly-return correlation of 0.71, so combining them can provide real diversification depending on your allocation goals.
What is the holdings overlap between EFFE and SPY?
EFFE and SPY share 0 common holdings with a 0.0% weight overlap. Combined, they hold 580 unique securities.
Which pays a higher dividend, EFFE or SPY?
EFFE yields 4.13% while SPY yields 1.01%, so EFFE currently pays the higher dividend yield.
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