FCEF vs SPY
First Trust Income Opportunities 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 | FCEF | SPY | Winner |
|---|---|---|---|
| Expense Ratio | 3.69% | 0.09% | |
| AUM | $83M | $821.1B | |
| Dividend Yield | 6.88% | 1.01% | |
| Holdings | 62 | 505 | |
| YTD Return | +10.75% | +14.24% | |
| 1Y Return | +15.44% | +21.71% | |
| 3Y Return (annualized) | +16.07% | +22.10% | |
| 5Y Return (annualized) | +6.16% | +13.21% | |
| Volatility (annualized) | 14.6% | 15.3% | |
| Max Drawdown | -45.1% | -56.5% | |
| Fund Family | First Trust Portfolios (US) | State Street Investment Management | |
| Category | Allocation/Balanced | Equity | |
| Inception | Sep 27, 2016 | Jan 22, 1993 |
FCEF vs SPY Performance
First Trust Income Opportunities ETF (FCEF) is a ETF from First Trust Portfolios (US) and State Street SPDR S&P 500 ETF Trust (SPY) is a ETF from State Street Investment Management. Over the past year FCEF returned +15.44% while SPY returned +21.71%. Year to date, FCEF is up 10.75% versus a gain of 14.24% for SPY.
Over three years, FCEF compounded at +16.07% per year against +22.10% for SPY; over five years the annualized figures are +6.16% and +13.21% respectively. Across the full 10-year window we track, SPY has the edge at +8.86% annualized vs +5.92%. Past performance does not guarantee future results.
Risk: Volatility and Drawdowns
SPY has been the more volatile fund, with annualized monthly volatility of 15.3% compared with 14.6% for FCEF. 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 -45.1% for FCEF 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 0.91. They move almost in lockstep, so holding both mostly duplicates the same exposure.
Fees and Cost Over Time
FCEF charges 3.69% per year while SPY charges 0.09%. On a $10,000 position that is $369 vs $9 annually, a gap of $360 per year that compounds over a long holding period. On income, FCEF currently yields 6.88% against 1.01% for SPY.
Holdings Overlap
FCEF and SPY share 0 holdings out of 564 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, FCEF or SPY?
FCEF has an expense ratio of 3.69% while SPY charges 0.09%. SPY is the cheaper option. On a $10,000 investment, that is $360 per year of difference.
Which performed better, FCEF or SPY?
Over the past year FCEF returned +15.44% vs +21.71% for SPY, so SPY leads on 1-year performance. Over the longest common window we track (10 years), FCEF annualized +5.92% vs +8.86% for SPY. Past performance does not guarantee future results.
Which is riskier, FCEF or SPY?
SPY has been the more volatile fund at 15.3% annualized versus 14.6% for FCEF. Worst drawdown: FCEF -45.1% vs SPY -56.5%.
Should I hold both FCEF and SPY?
FCEF and SPY have a monthly-return correlation of 0.91, so they move almost identically. Holding both adds little diversification - most investors pick one, usually on fees or the specific index tracked.
What is the holdings overlap between FCEF and SPY?
FCEF and SPY share 0 common holdings with a 0.0% weight overlap. Combined, they hold 564 unique securities.
Which pays a higher dividend, FCEF or SPY?
FCEF yields 6.88% while SPY yields 1.01%, so FCEF currently pays the higher dividend yield.
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