EMF vs SPY

Quick Verdict

SPY has a lower expense ratio. EMF delivered stronger 1-year returns. SPY offers more diversification with 503 holdings.

Lower Fees: SPYHigher Returns: EMFMore Diversified: SPY

Side-by-Side Comparison

MetricEMFSPYWinner
Expense Ratio1.50%0.09%
AUM$6,444.06$789.1B
Dividend Yield6.49%1.01%
Holdings100505
YTD Return+29.07%+13.39%
1Y Return+57.20%+22.52%
3Y Return (annualized)+32.33%+21.36%
5Y Return (annualized)+12.10%+13.19%
Volatility (annualized)29.3%15.3%
Max Drawdown-73.7%-56.5%
Fund FamilyFranklin Templeton Investments (US)State Street Investment Management
CategoryEquityEquity
InceptionFeb 27, 1987Jan 22, 1993

EMF vs SPY Performance

Templeton Emerging Markets Fund (EMF) is a ETF from Franklin Templeton Investments (US) and State Street SPDR S&P 500 ETF Trust (SPY) is a ETF from State Street Investment Management. Over the past year EMF returned +57.20% while SPY returned +22.52%. Year to date, EMF is up 29.07% versus a gain of 13.39% for SPY.

Over three years, EMF compounded at +32.33% per year against +21.36% for SPY; over five years the annualized figures are +12.10% and +13.19% respectively. Across the full 31-year window we track, SPY has the edge at +8.84% annualized vs +1.77%. Past performance does not guarantee future results.

Risk: Volatility and Drawdowns

EMF has been the more volatile fund, with annualized monthly volatility of 29.3% 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 -73.7% for EMF 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 0.65. They move independently enough that combining them can meaningfully diversify a portfolio.

Fees and Cost Over Time

EMF charges 1.50% per year while SPY charges 0.09%. On a $10,000 position that is $150 vs $9 annually, a gap of $141 per year that compounds over a long holding period. On income, EMF currently yields 6.49% against 1.01% for SPY.

Holdings Overlap

0.0%overlap

EMF and SPY share 1 holdings out of 587 unique holdings combined, representing a 0.0% weight overlap.

Moderate overlap means holding both could provide meaningful diversification benefits.

Top Shared Holdings

StockWeight in EMFWeight in SPYDifference
CTSH0.88%0.03%0.85%

Frequently Asked Questions

Which is cheaper, EMF or SPY?

EMF has an expense ratio of 1.50% while SPY charges 0.09%. SPY is the cheaper option. On a $10,000 investment, that is $141 per year of difference.

Which performed better, EMF or SPY?

Over the past year EMF returned +57.20% vs +22.52% for SPY, so EMF leads on 1-year performance. Over the longest common window we track (31 years), EMF annualized +1.77% vs +8.84% for SPY. Past performance does not guarantee future results.

Which is riskier, EMF or SPY?

EMF has been the more volatile fund at 29.3% annualized versus 15.3% for SPY. Worst drawdown: EMF -73.7% vs SPY -56.5%.

Should I hold both EMF and SPY?

EMF and SPY have a monthly-return correlation of 0.65, so combining them can provide real diversification depending on your allocation goals.

What is the holdings overlap between EMF and SPY?

EMF and SPY share 1 common holdings with a 0.0% weight overlap. Combined, they hold 587 unique securities.

Which pays a higher dividend, EMF or SPY?

EMF yields 6.49% while SPY yields 1.01%, so EMF currently pays the higher dividend yield.

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