ETO vs SPY
Eaton Vance Tax-Advantage Global Dividend Opportunity Fund vs State Street SPDR S&P 500 ETF Trust
Quick Verdict
SPY has a lower expense ratio. ETO delivered stronger 1-year returns. SPY offers more diversification with 503 holdings.
Side-by-Side Comparison
| Metric | ETO | SPY | Winner |
|---|---|---|---|
| Expense Ratio | 1.15% | 0.09% | |
| AUM | $388M | $789.1B | |
| Dividend Yield | 6.06% | 1.01% | |
| Holdings | 195 | 505 | |
| YTD Return | +11.92% | +13.79% | |
| 1Y Return | +25.75% | +23.66% | |
| 3Y Return (annualized) | +19.47% | +21.40% | |
| 5Y Return (annualized) | +8.36% | +13.37% | |
| Volatility (annualized) | 23.2% | 15.3% | |
| Max Drawdown | -75.2% | -56.5% | |
| Fund Family | Eaton Vance | State Street Investment Management | |
| Category | Allocation/Balanced | Equity | |
| Inception | Apr 30, 2004 | Jan 22, 1993 |
ETO vs SPY Performance
Eaton Vance Tax-Advantage Global Dividend Opportunity Fund (ETO) is a ETF from Eaton Vance and State Street SPDR S&P 500 ETF Trust (SPY) is a ETF from State Street Investment Management. Over the past year ETO returned +25.75% while SPY returned +23.66%. Year to date, ETO is up 11.92% versus a gain of 13.79% for SPY.
Over three years, ETO compounded at +19.47% per year against +21.40% for SPY; over five years the annualized figures are +8.36% and +13.37% respectively. Across the full 22-year window we track, SPY has the edge at +8.85% annualized vs +3.98%. Past performance does not guarantee future results.
Risk: Volatility and Drawdowns
ETO has been the more volatile fund, with annualized monthly volatility of 23.2% 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 -75.2% for ETO 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 0.87. They usually move together, but the gap leaves some room for diversification.
Fees and Cost Over Time
ETO charges 1.15% per year while SPY charges 0.09%. On a $10,000 position that is $115 vs $9 annually, a gap of $106 per year that compounds over a long holding period. On income, ETO currently yields 6.06% against 1.01% for SPY.
Holdings Overlap
ETO and SPY share 55 holdings out of 604 unique holdings combined, representing a 23.9% weight overlap.
Moderate overlap means holding both could provide meaningful diversification benefits.
Frequently Asked Questions
Which is cheaper, ETO or SPY?
ETO has an expense ratio of 1.15% while SPY charges 0.09%. SPY is the cheaper option. On a $10,000 investment, that is $106 per year of difference.
Which performed better, ETO or SPY?
Over the past year ETO returned +25.75% vs +23.66% for SPY, so ETO leads on 1-year performance. Over the longest common window we track (22 years), ETO annualized +3.98% vs +8.85% for SPY. Past performance does not guarantee future results.
Which is riskier, ETO or SPY?
ETO has been the more volatile fund at 23.2% annualized versus 15.3% for SPY. Worst drawdown: ETO -75.2% vs SPY -56.5%.
Should I hold both ETO and SPY?
ETO and SPY have a monthly-return correlation of 0.87, so combining them can provide real diversification depending on your allocation goals.
What is the holdings overlap between ETO and SPY?
ETO and SPY share 55 common holdings with a 23.9% weight overlap. Combined, they hold 604 unique securities.
Which pays a higher dividend, ETO or SPY?
ETO yields 6.06% while SPY yields 1.01%, so ETO currently pays the higher dividend yield.
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