EPEM vs SPY
Harbor Emerging Markets Equity ETF vs State Street SPDR S&P 500 ETF Trust
Quick Verdict
SPY has a lower expense ratio. EPEM delivered stronger 1-year returns. SPY offers more diversification with 503 holdings.
Side-by-Side Comparison
| Metric | EPEM | SPY | Winner |
|---|---|---|---|
| Expense Ratio | 0.84% | 0.09% | |
| AUM | $8M | $789.1B | |
| Dividend Yield | 2.94% | 1.01% | |
| Holdings | 44 | 505 | |
| YTD Return | +23.72% | +13.39% | |
| 1Y Return | +43.24% | +22.52% | |
| 3Y Return (annualized) | - | +21.36% | |
| 5Y Return (annualized) | - | +13.19% | |
| Volatility (annualized) | 18.2% | 15.3% | |
| Max Drawdown | -13.3% | -56.5% | |
| Fund Family | Harbor Funds | State Street Investment Management | |
| Category | Equity | Equity | |
| Inception | Jun 4, 2025 | Jan 22, 1993 |
EPEM vs SPY Performance
Harbor Emerging Markets Equity ETF (EPEM) 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 EPEM returned +43.24% while SPY returned +22.52%. Year to date, EPEM is up 23.72% versus a gain of 13.39% for SPY.
Risk: Volatility and Drawdowns
EPEM has been the more volatile fund, with annualized monthly volatility of 18.2% 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 -13.3% for EPEM 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 0.76. They usually move together, but the gap leaves some room for diversification.
Fees and Cost Over Time
EPEM charges 0.84% per year while SPY charges 0.09%. On a $10,000 position that is $84 vs $9 annually, a gap of $75 per year that compounds over a long holding period. On income, EPEM currently yields 2.94% against 1.01% for SPY.
Holdings Overlap
EPEM and SPY share 0 holdings out of 545 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, EPEM or SPY?
EPEM has an expense ratio of 0.84% while SPY charges 0.09%. SPY is the cheaper option. On a $10,000 investment, that is $75 per year of difference.
Which performed better, EPEM or SPY?
Over the past year EPEM returned +43.24% vs +22.52% for SPY, so EPEM leads on 1-year performance. Over the longest common window we track (1 years), EPEM annualized +43.42% vs +8.84% for SPY. Past performance does not guarantee future results.
Which is riskier, EPEM or SPY?
EPEM has been the more volatile fund at 18.2% annualized versus 15.3% for SPY. Worst drawdown: EPEM -13.3% vs SPY -56.5%.
Should I hold both EPEM and SPY?
EPEM and SPY have a monthly-return correlation of 0.76, so combining them can provide real diversification depending on your allocation goals.
What is the holdings overlap between EPEM and SPY?
EPEM and SPY share 0 common holdings with a 0.0% weight overlap. Combined, they hold 545 unique securities.
Which pays a higher dividend, EPEM or SPY?
EPEM yields 2.94% while SPY yields 1.01%, so EPEM currently pays the higher dividend yield.
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