FCVT vs SPY

FCVT vs SPY

Which is better, FCVT or SPY?

Convertibles against Large Cap Blend.

SPY has a lower expense ratio. FCVT led over 1Y, SPY over 3Y, 5Y and the full window.

Lower Fees: SPYHigher Returns: split

MarketXLS is not an investment adviser. This comparison is generated automatically from market data and is for information only. A Best mark means the better reading on that one measure, not a recommendation to buy.

Side-by-Side Comparison

MetricFCVTSPY
Expense Ratio0.95%0.09%Best
AUM$99M$814.4B
Dividend Yield1.14%1.01%
Holdings251505
YTD Return+13.93%Best+13.78%
1Y Return+24.45%Best+21.44%
3Y Return (annualized)+17.33%+21.38%Best
5Y Return (annualized)+4.83%+12.80%Best
Volatility (annualized)14.3%Best15.1%
Max Drawdown-32.3%Best-34.1%
$10,000 over 5 years$12,660$18,262Best
Fund FamilyFirst Trust Portfolios (US)State Street Investment Management
CategoryConvertibleEquity
StyleConvertiblesLarge Cap Blend
InceptionNov 3, 2015Jan 22, 1993

Not shown on this pair: Top 10 Weight.

Volatility and max drawdown are measured over the window both funds cover: Nov 4, 2015 to Sep 3, 2026 (10.8 years).

FCVT vs SPY growth

Month-end closes. Both lines start at 0% in the first month shown, so the gap between them is the difference in growth across that window. The full view covers the 10.8 years both funds cover.

FCVT vs SPY Performance

First Trust SSI Strategic Convertible Securities ETF (FCVT) is an ETF from First Trust Portfolios (US) and State Street SPDR S&P 500 ETF Trust (SPY) is an ETF from State Street Investment Management. Over the past year FCVT returned +24.45% while SPY returned +21.44%. Year to date, FCVT is up 13.93% versus a gain of 13.78% for SPY.

Over three years, FCVT compounded at +17.33% per year against +21.38% for SPY; over five years the annualized figures are +4.83% and +12.80% respectively. Across the full 11-year window we track, SPY has the edge at +13.54% annualized vs +9.38%.

Past performance does not guarantee future results.

Risk: Volatility and Drawdowns

SPY has been the more volatile fund, with annualized monthly volatility of 15.1% compared with 14.3% for FCVT. 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 -32.3% for FCVT and -34.1% for SPY. Drawdown depth is what each fund did in the worst stretch of the window measured above.

The two funds' monthly returns correlate at 0.83. They usually move together, but the gap leaves some room for diversification.

Fees and Cost Over Time

FCVT charges 0.95% per year while SPY charges 0.09%. On a $10,000 position that is $95 vs $9 annually, a gap of $86 per year that compounds over a long holding period. On income, FCVT currently yields 1.14% against 1.01% for SPY.

Holdings Overlap

SPY already in FCVT0.7%

At least 0.7% of SPY's money is in holdings FCVT also owns.

Stated as a floor: for FCVT, our book for it covers 45.2% of that fund, so a holding it does not list is one we cannot count as shared. The real figure is this or higher.

We cannot see either book well enough to say how much of this pair is duplicated.

4 positions in common, counted across the 49 positions we hold weights for in FCVT and 504 in SPY, against full books of 251 and 505.

Top Shared Holdings

StockWeight in FCVTWeight in SPYDifference
WDCWestern Digital Corp Company Guar 11/28 32.93%0.28%2.65%
LITELumentum Holdings Inc1.55%0.10%1.45%
ARESAres Management Corp Preferred Stock 10/27 6.750.69%0.05%0.64%
STXSeagate Technology Holdings Plc0.45%0.28%0.17%

You are not choosing between two funds in isolation.

Whichever of FCVT and SPY you pick has to sit alongside everything else you own. Add the rest and see what the combination actually holds.

FCVTSPY

Free for up to 10 holdings. No account needed.

Frequently Asked Questions

Which is cheaper, FCVT or SPY?

FCVT has an expense ratio of 0.95% while SPY charges 0.09%. SPY is the cheaper option, by $86 a year on a $10,000 investment.

Which performed better, FCVT or SPY?

Over the past year FCVT returned +24.45% vs +21.44% for SPY, so FCVT leads on 1-year performance. Over the longest common window we track (11 years), FCVT annualized +9.38% vs +13.54% for SPY. Past performance does not guarantee future results. This is information, not a recommendation.

Which is riskier, FCVT or SPY?

SPY has been the more volatile fund at 15.1% annualized versus 14.3% for FCVT. Worst drawdown: FCVT -32.3% vs SPY -34.1%.

Should I hold both FCVT and SPY?

FCVT and SPY have a monthly-return correlation of 0.83, so their returns are far enough apart for the mix to behave differently from either one alone. This is information, not a recommendation.

Which pays a higher dividend, FCVT or SPY?

FCVT yields 1.14% while SPY yields 1.01%, so FCVT currently pays the higher dividend yield.

Is SPY better than FCVT?

SPY has a lower expense ratio. FCVT led over 1Y, SPY over 3Y, 5Y and the full window. Which one suits a particular account depends on what it is for. This is information, not a recommendation.