EMO vs SPY

EMO vs SPY
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Quick Verdict

SPY has a lower expense ratio. EMO delivered stronger 1-year returns. SPY offers more diversification with 505 holdings.

Lower Fees: SPYHigher Returns: EMOMore Diversified: SPY

Side-by-Side Comparison

MetricEMOSPYWinner
Expense Ratio3.37%0.09%
AUM$1.2B$821.1B
Dividend Yield7.36%1.01%
Holdings20505
YTD Return+24.62%+14.24%
1Y Return+22.01%+21.71%
3Y Return (annualized)+30.20%+22.10%
5Y Return (annualized)+30.37%+13.21%
Volatility (annualized)41.8%15.3%
Max Drawdown-97.2%-56.5%
Fund FamilyFranklin Templeton Investments (US)State Street Investment Management
CategoryEquityEquity
InceptionJun 13, 2011Jan 22, 1993

EMO vs SPY Performance

ClearBridge Energy Midstream Opportunity Fund Inc. (EMO) 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 EMO returned +22.01% while SPY returned +21.71%. Year to date, EMO is up 24.62% versus a gain of 14.24% for SPY.

Over three years, EMO compounded at +30.20% per year against +22.10% for SPY; over five years the annualized figures are +30.37% and +13.21% respectively. Across the full 15-year window we track, SPY has the edge at +8.86% annualized vs -1.25%. Past performance does not guarantee future results.

Risk: Volatility and Drawdowns

EMO has been the more volatile fund, with annualized monthly volatility of 41.8% 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 -97.2% for EMO 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 0.61. They move independently enough that combining them can meaningfully diversify a portfolio.

Fees and Cost Over Time

EMO charges 3.37% per year while SPY charges 0.09%. On a $10,000 position that is $337 vs $9 annually, a gap of $328 per year that compounds over a long holding period. On income, EMO currently yields 7.36% against 1.01% for SPY.

Holdings Overlap

0.4%overlap

EMO and SPY share 4 holdings out of 520 unique holdings combined, representing a 0.4% weight overlap.

Moderate overlap means holding both could provide meaningful diversification benefits.

Top Shared Holdings

StockWeight in EMOWeight in SPYDifference
TRGP14.81%0.08%14.73%
WMB10.85%0.13%10.72%
KMI8.76%0.09%8.67%
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Frequently Asked Questions

Which is cheaper, EMO or SPY?

EMO has an expense ratio of 3.37% while SPY charges 0.09%. SPY is the cheaper option. On a $10,000 investment, that is $328 per year of difference.

Which performed better, EMO or SPY?

Over the past year EMO returned +22.01% vs +21.71% for SPY, so EMO leads on 1-year performance. Over the longest common window we track (15 years), EMO annualized -1.25% vs +8.86% for SPY. Past performance does not guarantee future results.

Which is riskier, EMO or SPY?

EMO has been the more volatile fund at 41.8% annualized versus 15.3% for SPY. Worst drawdown: EMO -97.2% vs SPY -56.5%.

Should I hold both EMO and SPY?

EMO and SPY have a monthly-return correlation of 0.61, so combining them can provide real diversification depending on your allocation goals.

What is the holdings overlap between EMO and SPY?

EMO and SPY share 4 common holdings with a 0.4% weight overlap. Combined, they hold 520 unique securities.

Which pays a higher dividend, EMO or SPY?

EMO yields 7.36% while SPY yields 1.01%, so EMO currently pays the higher dividend yield.

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