ETEC vs SPY
iShares Breakthrough Environmental Solutions ETF vs State Street SPDR S&P 500 ETF Trust
Quick Verdict
SPY has a lower expense ratio. SPY delivered stronger 1-year returns. SPY offers more diversification with 505 holdings.
Side-by-Side Comparison
| Metric | ETEC | SPY | Winner |
|---|---|---|---|
| Expense Ratio | 0.47% | 0.09% | |
| AUM | $4M | $814.4B | |
| Dividend Yield | 0.50% | 1.01% | |
| Holdings | 61 | 505 | |
| YTD Return | +1.79% | +12.87% | |
| 1Y Return | +10.91% | +21.13% | |
| 3Y Return (annualized) | +3.66% | +20.86% | |
| 5Y Return (annualized) | - | +12.69% | |
| Volatility (annualized) | 24.3% | 15.3% | |
| Max Drawdown | -39.7% | -56.5% | |
| Fund Family | iShares by BlackRock (US) | State Street Investment Management | |
| Category | Equity | Equity | |
| Inception | Mar 28, 2023 | Jan 22, 1993 |
ETEC vs SPY Performance
iShares Breakthrough Environmental Solutions ETF (ETEC) is a ETF from iShares by BlackRock (US) and State Street SPDR S&P 500 ETF Trust (SPY) is a ETF from State Street Investment Management. Over the past year ETEC returned +10.91% while SPY returned +21.13%. Year to date, ETEC is up 1.79% versus a gain of 12.87% for SPY.
Over three years, ETEC compounded at +3.66% per year against +20.86% for SPY. Across the full 3-year window we track, SPY has the edge at +8.80% annualized vs +1.04%. Past performance does not guarantee future results.
Risk: Volatility and Drawdowns
ETEC has been the more volatile fund, with annualized monthly volatility of 24.3% 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 -39.7% for ETEC 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 0.60. They move independently enough that combining them can meaningfully diversify a portfolio.
Fees and Cost Over Time
ETEC charges 0.47% per year while SPY charges 0.09%. On a $10,000 position that is $47 vs $9 annually, a gap of $38 per year that compounds over a long holding period. On income, ETEC currently yields 0.50% against 1.01% for SPY.
Holdings Overlap
ETEC and SPY share 4 holdings out of 548 unique holdings combined, representing a 1.9% weight overlap.
Moderate overlap means holding both could provide meaningful diversification benefits.
Frequently Asked Questions
Which is cheaper, ETEC or SPY?
ETEC has an expense ratio of 0.47% while SPY charges 0.09%. SPY is the cheaper option. On a $10,000 investment, that is $38 per year of difference.
Which performed better, ETEC or SPY?
Over the past year ETEC returned +10.91% vs +21.13% for SPY, so SPY leads on 1-year performance. Over the longest common window we track (3 years), ETEC annualized +1.04% vs +8.80% for SPY. Past performance does not guarantee future results.
Which is riskier, ETEC or SPY?
ETEC has been the more volatile fund at 24.3% annualized versus 15.3% for SPY. Worst drawdown: ETEC -39.7% vs SPY -56.5%.
Should I hold both ETEC and SPY?
ETEC and SPY have a monthly-return correlation of 0.60, so combining them can provide real diversification depending on your allocation goals.
What is the holdings overlap between ETEC and SPY?
ETEC and SPY share 4 common holdings with a 1.9% weight overlap. Combined, they hold 548 unique securities.
Which pays a higher dividend, ETEC or SPY?
ETEC yields 0.50% while SPY yields 1.01%, so SPY currently pays the higher dividend yield.
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