FDD vs SPY
First Trust STOXX European Select Dividend Index Fund vs State Street SPDR S&P 500 ETF Trust
Which is better, FDD or SPY?
Large Cap Value against Large Cap Blend.
SPY has a lower expense ratio. FDD led over 1Y, 3Y and 5Y, SPY over the full window. SPY is less concentrated, with 38.0% of the fund in its ten largest positions against 44.3%.
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
| Metric | FDD | SPY |
|---|---|---|
| Expense Ratio | 0.56% | 0.09%Best |
| AUM | $932M | $814.4B |
| Dividend Yield | 5.03% | 1.01% |
| Holdings | 68 | 505 |
| YTD Return | +20.40%Best | +13.34% |
| 1Y Return | +37.25%Best | +19.97% |
| 3Y Return (annualized) | +30.49%Best | +21.20% |
| 5Y Return (annualized) | +13.77%Best | +12.81% |
| Volatility (annualized) | 18.0% | 14.4%Best |
| Max Drawdown | -46.5% | -34.1%Best |
| $10,000 over 5 years | $19,061Best | $18,270 |
| Top 10 Weight | 44.3% | 38.0%Best |
| Fund Family | First Trust Portfolios (US) | State Street Investment Management |
| Category | Equity | Equity |
| Style | Large Cap Value | Large Cap Blend |
| Inception | Aug 27, 2007 | Jan 22, 1993 |
Volatility and max drawdown are measured over the window both funds cover: Sep 11, 2009 to Sep 4, 2026 (17 years).
FDD 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 17 years both funds cover.
FDD vs SPY Performance
First Trust STOXX European Select Dividend Index Fund (FDD) 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 FDD returned +37.25% while SPY returned +19.97%. Year to date, FDD is up 20.40% versus a gain of 13.34% for SPY.
Over three years, FDD compounded at +30.49% per year against +21.20% for SPY; over five years the annualized figures are +13.77% and +12.81% respectively. Across the full 17-year window we track, SPY has the edge at +12.96% annualized vs +4.33%.
Past performance does not guarantee future results.
Risk: Volatility and Drawdowns
FDD has been the more volatile fund, with annualized monthly volatility of 18.0% compared with 14.4% 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 -46.5% for FDD 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 0.71. They usually move together, but the gap leaves some room for diversification.
Fees and Cost Over Time
FDD charges 0.56% per year while SPY charges 0.09%. On a $10,000 position that is $56 vs $9 annually, a gap of $47 per year that compounds over a long holding period. On income, FDD currently yields 5.03% against 1.01% for SPY.
Holdings Overlap
We hold position weights for 30 holdings in FDD and 504 in SPY, totalling 100.0% and 100.0% of the two funds. The two books name no position in common, so there is no overlap percentage to show.
0 positions in common, counted across the 30 positions we hold weights for in FDD and 504 in SPY, against full books of 68 and 505.
What only one of them owns
Our book lists 496 positions for SPY that do not appear in our book for FDD (99.5% of the fund), and 1 for FDD that do not appear in SPY (1.7%).
Some of those will be the same company recorded under a different code in one of the two books, so the real difference in what you would own is no larger than this and may be smaller. We do not name the individual positions here for that reason.
You are not choosing between two funds in isolation.
Whichever of FDD and SPY you pick has to sit alongside everything else you own. Add the rest and see what the combination actually holds.
Free for up to 10 holdings. No account needed.
Frequently Asked Questions
Which is cheaper, FDD or SPY?
FDD has an expense ratio of 0.56% while SPY charges 0.09%. SPY is the cheaper option, by $47 a year on a $10,000 investment.
Which performed better, FDD or SPY?
Over the past year FDD returned +37.25% vs +19.97% for SPY, so FDD leads on 1-year performance. Over the longest common window we track (17 years), FDD annualized +4.33% vs +12.96% for SPY. Past performance does not guarantee future results. This is information, not a recommendation.
Which is riskier, FDD or SPY?
FDD has been the more volatile fund at 18.0% annualized versus 14.4% for SPY. Worst drawdown: FDD -46.5% vs SPY -34.1%.
Should I hold both FDD and SPY?
FDD and SPY have a monthly-return correlation of 0.71, 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, FDD or SPY?
FDD yields 5.03% while SPY yields 1.01%, so FDD currently pays the higher dividend yield.
Is SPY better than FDD?
SPY has a lower expense ratio. FDD led over 1Y, 3Y and 5Y, SPY over the full window. SPY is less concentrated, with 38.0% of the fund in its ten largest positions against 44.3%. Which one suits a particular account depends on what it is for. This is information, not a recommendation.