FCFY vs SPY
First Trust S&P 500 Diversified Free Cash Flow 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 503 holdings.
Side-by-Side Comparison
| Metric | FCFY | SPY | Winner |
|---|---|---|---|
| Expense Ratio | 0.60% | 0.09% | |
| AUM | $1M | $789.1B | |
| Dividend Yield | 1.42% | 1.01% | |
| Holdings | 102 | 505 | |
| YTD Return | +8.79% | +13.68% | |
| 1Y Return | +17.54% | +21.53% | |
| 3Y Return (annualized) | +16.41% | +21.44% | |
| 5Y Return (annualized) | - | +13.18% | |
| Volatility (annualized) | 15.2% | 15.3% | |
| Max Drawdown | -21.4% | -56.5% | |
| Fund Family | First Trust Portfolios (US) | State Street Investment Management | |
| Category | Equity | Equity | |
| Inception | Aug 23, 2023 | Jan 22, 1993 |
FCFY vs SPY Performance
First Trust S&P 500 Diversified Free Cash Flow ETF (FCFY) 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 FCFY returned +17.54% while SPY returned +21.53%. Year to date, FCFY is up 8.79% versus a gain of 13.68% for SPY.
Over three years, FCFY compounded at +16.41% per year against +21.44% for SPY. Across the full 3-year window we track, FCFY has the edge at +16.41% annualized vs +8.85%. 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 15.2% for FCFY. 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 -21.4% for FCFY 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 0.82. They usually move together, but the gap leaves some room for diversification.
Fees and Cost Over Time
FCFY charges 0.60% per year while SPY charges 0.09%. On a $10,000 position that is $60 vs $9 annually, a gap of $51 per year that compounds over a long holding period. On income, FCFY currently yields 1.42% against 1.01% for SPY.
Holdings Overlap
FCFY and SPY share 99 holdings out of 503 unique holdings combined, representing a 6.8% weight overlap.
Moderate overlap means holding both could provide meaningful diversification benefits.
Frequently Asked Questions
Which is cheaper, FCFY or SPY?
FCFY has an expense ratio of 0.60% while SPY charges 0.09%. SPY is the cheaper option. On a $10,000 investment, that is $51 per year of difference.
Which performed better, FCFY or SPY?
Over the past year FCFY returned +17.54% vs +21.53% for SPY, so SPY leads on 1-year performance. Over the longest common window we track (3 years), FCFY annualized +16.41% vs +8.85% for SPY. Past performance does not guarantee future results.
Which is riskier, FCFY or SPY?
SPY has been the more volatile fund at 15.3% annualized versus 15.2% for FCFY. Worst drawdown: FCFY -21.4% vs SPY -56.5%.
Should I hold both FCFY and SPY?
FCFY and SPY have a monthly-return correlation of 0.82, so combining them can provide real diversification depending on your allocation goals.
What is the holdings overlap between FCFY and SPY?
FCFY and SPY share 99 common holdings with a 6.8% weight overlap. Combined, they hold 503 unique securities.
Which pays a higher dividend, FCFY or SPY?
FCFY yields 1.42% while SPY yields 1.01%, so FCFY currently pays the higher dividend yield.
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