ESML vs SPY
iShares ESG Aware MSCI USA Small-Cap ETF vs State Street SPDR S&P 500 ETF Trust
Which is better, ESML or SPY?
Small Cap Blend against Large Cap Blend.
SPY has a lower expense ratio. ESML led over 1Y, SPY over 3Y, 5Y and the full window. ESML is less concentrated, with 4.5% of the fund in its ten largest positions against 37.8%.
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 | ESML | SPY |
|---|---|---|
| Expense Ratio | 0.17% | 0.09%Best |
| AUM | $2.8B | $804.7B |
| Dividend Yield | 0.91% | 0.98% |
| Holdings | 913 | 505 |
| YTD Return | +14.63%Best | +13.82% |
| 1Y Return | +17.79%Best | +16.96% |
| 3Y Return (annualized) | +17.79% | +22.97%Best |
| 5Y Return (annualized) | +7.77% | +13.73%Best |
| Volatility (annualized) | 21.3% | 16.5%Best |
| Max Drawdown | -42.0% | -34.1%Best |
| $10,000 over 5 years | $14,537 | $19,027Best |
| Top 10 Weight | 4.5%Best | 37.8% |
| Fund Family | iShares by BlackRock (US) | State Street Investment Management |
| Category | Equity | Equity |
| Style | Small Cap Blend | Large Cap Blend |
| Inception | Apr 10, 2018 | Jan 22, 1993 |
Volatility and max drawdown are measured over the window both funds cover: Apr 12, 2018 to Sep 21, 2026 (8.4 years).
ESML 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 covers the 8.4 years both funds cover.
ESML vs SPY Performance
iShares ESG Aware MSCI USA Small-Cap ETF (ESML) is an ETF from iShares by BlackRock (US) and State Street SPDR S&P 500 ETF Trust (SPY) is an ETF from State Street Investment Management. Over the past year ESML returned +17.79% while SPY returned +16.96%. Year to date, ESML is up 14.63% versus a gain of 13.82% for SPY.
Over three years, ESML compounded at +17.79% per year against +22.97% for SPY; over five years the annualized figures are +7.77% and +13.73% respectively. Across the full 8-year window we track, SPY has the edge at +14.48% annualized vs +9.85%.
Past performance does not guarantee future results.
Risk: Volatility and Drawdowns
ESML has been the more volatile fund, with annualized monthly volatility of 21.3% compared with 16.5% 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 -42.0% for ESML and -34.1% 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 0.89. They usually move together, but the gap leaves some room for diversification.
Fees and Cost Over Time
ESML charges 0.17% per year while SPY charges 0.09%. On a $10,000 position that is $17 vs $9 annually, a gap of $8 per year that compounds over a long holding period. On income, ESML currently yields 0.91% against 0.98% for SPY.
Holdings Overlap
10.6% of ESML's money is in holdings SPY also owns. 1.0% of SPY's money is in holdings ESML also owns.
ESML and SPY share little of their money.
52 positions in common, counted across the 854 positions we hold weights for in ESML and 504 in SPY, against full books of 913 and 505.
What only one of them owns
Our book lists 445 positions for SPY that do not appear in our book for ESML (98.4% of the fund), and 782 for ESML that do not appear in SPY (83.0%).
Some of those will be the same company recorded under a different code in one of the two books, so the real difference in what you would own is no larger than this and may be smaller. We do not name the individual positions here for that reason.
Top Shared Holdings
| Stock | Weight in ESML | Weight in SPY | Difference |
|---|---|---|---|
| MRNAModerna therapeutics | 0.74% | 0.08% | 0.66% |
| AIZAssurant, Inc. | 0.62% | 0.02% | 0.60% |
| TRMBTrimble Inc. | 0.33% | 0.02% | 0.31% |
| IVZInvesco Plc | 0.32% | 0.02% | 0.30% |
| CLXClorox Co. | 0.32% | 0.02% | 0.30% |
| FDSFactset Research Systems Inc. | 0.31% | 0.02% | 0.29% |
| RVTYRevvity Inc | 0.30% | 0.02% | 0.28% |
| DOCHealthpeak Properties Inc | 0.29% | 0.02% | 0.27% |
| AKAMAkamai Technologies Inc. | 0.29% | 0.02% | 0.27% |
| VTRSViatris Inc. | 0.26% | 0.03% | 0.23% |
You are not choosing between two funds in isolation.
Whichever of ESML 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, ESML or SPY?
ESML has an expense ratio of 0.17% while SPY charges 0.09%. SPY is the cheaper option, by $8 a year on a $10,000 investment.
Which performed better, ESML or SPY?
Over the past year ESML returned +17.79% vs +16.96% for SPY, so ESML leads on 1-year performance. Over the longest common window we track (8 years), ESML annualized +9.85% vs +14.48% for SPY. Past performance does not guarantee future results. This is information, not a recommendation.
Which is riskier, ESML or SPY?
ESML has been the more volatile fund at 21.3% annualized versus 16.5% for SPY. Worst drawdown: ESML -42.0% vs SPY -34.1%.
Should I hold both ESML and SPY?
ESML and SPY have a monthly-return correlation of 0.89, so their returns are far enough apart for the mix to behave differently from either one alone. This is information, not a recommendation.
What is the holdings overlap between ESML and SPY?
10.6% of ESML's money is in holdings SPY also owns. 1.0% of SPY's is in holdings ESML also owns. They hold 52 positions in common, counted across the 854 positions we hold weights for in ESML and 504 in SPY.
Which pays a higher dividend, ESML or SPY?
ESML yields 0.91% while SPY yields 0.98%, so SPY currently pays the higher dividend yield.
Is SPY better than ESML?
SPY has a lower expense ratio. ESML led over 1Y, SPY over 3Y, 5Y and the full window. ESML is less concentrated, with 4.5% of the fund in its ten largest positions against 37.8%. Which one suits a particular account depends on what it is for. This is information, not a recommendation.