FCTR vs SPY
First Trust Lunt US Factor Rotation 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 | FCTR | SPY | Winner |
|---|---|---|---|
| Expense Ratio | 0.65% | 0.09% | |
| AUM | $57M | $821.1B | |
| Dividend Yield | 0.50% | 1.01% | |
| Holdings | 163 | 505 | |
| YTD Return | +11.78% | +14.24% | |
| 1Y Return | +19.55% | +21.71% | |
| 3Y Return (annualized) | +17.52% | +22.10% | |
| 5Y Return (annualized) | +3.47% | +13.21% | |
| Volatility (annualized) | 20.0% | 15.3% | |
| Max Drawdown | -37.1% | -56.5% | |
| Fund Family | First Trust Portfolios (US) | State Street Investment Management | |
| Category | Equity | Equity | |
| Inception | Jul 23, 2018 | Jan 22, 1993 |
FCTR vs SPY Performance
First Trust Lunt US Factor Rotation ETF (FCTR) 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 FCTR returned +19.55% while SPY returned +21.71%. Year to date, FCTR is up 11.78% versus a gain of 14.24% for SPY.
Over three years, FCTR compounded at +17.52% per year against +22.10% for SPY; over five years the annualized figures are +3.47% and +13.21% respectively. Across the full 8-year window we track, FCTR has the edge at +9.82% annualized vs +8.86%. Past performance does not guarantee future results.
Risk: Volatility and Drawdowns
FCTR has been the more volatile fund, with annualized monthly volatility of 20.0% 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 -37.1% for FCTR 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 0.88. They usually move together, but the gap leaves some room for diversification.
Fees and Cost Over Time
FCTR charges 0.65% per year while SPY charges 0.09%. On a $10,000 position that is $65 vs $9 annually, a gap of $56 per year that compounds over a long holding period. On income, FCTR currently yields 0.50% against 1.01% for SPY.
Holdings Overlap
FCTR and SPY share 152 holdings out of 519 unique holdings combined, representing a 19.4% weight overlap.
Moderate overlap means holding both could provide meaningful diversification benefits.
Frequently Asked Questions
Which is cheaper, FCTR or SPY?
FCTR has an expense ratio of 0.65% while SPY charges 0.09%. SPY is the cheaper option. On a $10,000 investment, that is $56 per year of difference.
Which performed better, FCTR or SPY?
Over the past year FCTR returned +19.55% vs +21.71% for SPY, so SPY leads on 1-year performance. Over the longest common window we track (8 years), FCTR annualized +9.82% vs +8.86% for SPY. Past performance does not guarantee future results.
Which is riskier, FCTR or SPY?
FCTR has been the more volatile fund at 20.0% annualized versus 15.3% for SPY. Worst drawdown: FCTR -37.1% vs SPY -56.5%.
Should I hold both FCTR and SPY?
FCTR and SPY have a monthly-return correlation of 0.88, so combining them can provide real diversification depending on your allocation goals.
What is the holdings overlap between FCTR and SPY?
FCTR and SPY share 152 common holdings with a 19.4% weight overlap. Combined, they hold 519 unique securities.
Which pays a higher dividend, FCTR or SPY?
FCTR yields 0.50% while SPY yields 1.01%, so SPY currently pays the higher dividend yield.
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