EMD vs SPY
Western Asset Emerging Markets Debt Fund Inc vs State Street SPDR S&P 500 ETF Trust
Which is better, EMD or SPY?
Emerging Markets Bond against Large Cap Blend.
SPY has a lower expense ratio. SPY led over 1Y, 3Y, 5Y and the full window.
MarketXLS is not an investment adviser. This comparison is generated automatically from market data and is for information only. A Best mark means the better reading on that one measure, not a recommendation to buy.
Side-by-Side Comparison
| Metric | EMD | SPY |
|---|---|---|
| Expense Ratio | 3.09% | 0.09%Best |
| AUM | $632M | $804.7B |
| Dividend Yield | 9.31% | 0.98% |
| Holdings | 267 | 505 |
| YTD Return | -1.28% | +11.45%Best |
| 1Y Return | +5.38% | +15.87%Best |
| 3Y Return (annualized) | +15.98% | +20.93%Best |
| 5Y Return (annualized) | +3.71% | +12.59%Best |
| Volatility (annualized) | 17.3% | 14.6%Best |
| Max Drawdown | -64.5% | -56.5%Best |
| $10,000 over 5 years | $11,998 | $18,093Best |
| Fund Family | Franklin Templeton Investments (US) | State Street Investment Management |
| Category | Fixed Income | Equity |
| Style | Emerging Markets Bond | Large Cap Blend |
| Inception | Dec 1, 2003 | Jan 22, 1993 |
Not shown on this pair: Top 10 Weight.
Volatility and max drawdown are measured over the window both funds cover: Dec 2, 2003 to Sep 15, 2026 (22.8 years).
EMD vs SPY growth
Month-end closes. Both lines start at 0% in the first month shown, so the gap between them is the difference in growth across that window. The full view is available from the range buttons; it is not the opening view here because over the whole period one of these two funds moves so much further than the other that its line would sit flat on the axis.
EMD vs SPY Performance
Western Asset Emerging Markets Debt Fund Inc (EMD) is an ETF from Franklin Templeton Investments (US) and State Street SPDR S&P 500 ETF Trust (SPY) is an ETF from State Street Investment Management. Over the past year EMD returned +5.38% while SPY returned +15.87%. Year to date, EMD is down 1.28% versus a gain of 11.45% for SPY.
Over three years, EMD compounded at +15.98% per year against +20.93% for SPY; over five years the annualized figures are +3.71% and +12.59% respectively. Across the full 23-year window we track, SPY has the edge at +9.31% annualized vs -0.57%.
Past performance does not guarantee future results.
Risk: Volatility and Drawdowns
EMD has been the more volatile fund, with annualized monthly volatility of 17.3% compared with 14.6% 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 -64.5% for EMD and -56.5% for SPY. Drawdown depth is what each fund did in the worst stretch of the window measured above.
The two funds' monthly returns correlate at 0.66. They move together some of the time, and apart the rest.
Fees and Cost Over Time
EMD charges 3.09% per year while SPY charges 0.09%. On a $10,000 position that is $309 vs $9 annually, a gap of $300 per year that compounds over a long holding period. On income, EMD currently yields 9.31% against 0.98% for SPY.
Holdings Overlap
We hold position weights for 136 holdings in EMD and 504 in SPY, totalling 71.2% and 99.9% of the two funds. The two books name no position in common, so there is no overlap percentage to show.
The two holdings books were reported 154 days apart, EMD as of Mar 31, 2026 and SPY as of Sep 1, 2026, so some of the difference between them is the time between the two reports rather than the funds.
0 positions in common, counted across the 136 positions we hold weights for in EMD and 504 in SPY, against full books of 267 and 505.
You are not choosing between two funds in isolation.
Whichever of EMD and SPY you pick has to sit alongside everything else you own. Add the rest and see what the combination actually holds.
Free for up to 10 holdings. No account needed.
Frequently Asked Questions
Which is cheaper, EMD or SPY?
EMD has an expense ratio of 3.09% while SPY charges 0.09%. SPY is the cheaper option, by $300 a year on a $10,000 investment.
Which performed better, EMD or SPY?
Over the past year EMD returned +5.38% vs +15.87% for SPY, so SPY leads on 1-year performance. Over the longest common window we track (23 years), EMD annualized -0.57% vs +9.31% for SPY. Past performance does not guarantee future results. This is information, not a recommendation.
Which is riskier, EMD or SPY?
EMD has been the more volatile fund at 17.3% annualized versus 14.6% for SPY. Worst drawdown: EMD -64.5% vs SPY -56.5%.
Should I hold both EMD and SPY?
EMD and SPY have a monthly-return correlation of 0.66, so their returns are far enough apart for the mix to behave differently from either one alone. This is information, not a recommendation.
Which pays a higher dividend, EMD or SPY?
EMD yields 9.31% while SPY yields 0.98%, so EMD currently pays the higher dividend yield.
Is SPY better than EMD?
SPY has a lower expense ratio. SPY led over 1Y, 3Y, 5Y and the full window. Which one suits a particular account depends on what it is for. This is information, not a recommendation.