FDEM vs SPY
Fidelity Emerging Markets Multifactor ETF vs State Street SPDR S&P 500 ETF Trust
Which is better, FDEM or SPY?
Each has led over a different period.
SPY has a lower expense ratio. FDEM led over 1Y, SPY over 3Y, 5Y and the full window. SPY is less concentrated, with 38.0% of the fund in its ten largest positions against 38.9%.
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 | FDEM | SPY |
|---|---|---|
| Expense Ratio | 0.25% | 0.09%Best |
| AUM | $581M | $804.7B |
| Dividend Yield | 2.94% | 0.98% |
| Holdings | 239 | 505 |
| YTD Return | +15.78%Best | +12.47% |
| 1Y Return | +22.05%Best | +17.51% |
| 3Y Return (annualized) | +20.69% | +21.18%Best |
| 5Y Return (annualized) | +9.76% | +12.88%Best |
| Volatility (annualized) | 15.6%Best | 16.4% |
| Max Drawdown | -33.6%Best | -34.1% |
| $10,000 over 5 years | $15,930 | $18,327Best |
| Top 10 Weight | 38.9% | 38.0%Best |
| Fund Family | Fidelity Investments (US) | State Street Investment Management |
| Category | Equity | Equity |
| Style | Large Cap Blend | Large Cap Blend |
| Inception | Feb 26, 2019 | Jan 22, 1993 |
Volatility and max drawdown are measured over the window both funds cover: Feb 28, 2019 to Sep 11, 2026 (7.5 years).
FDEM 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 7.5 years both funds cover.
FDEM vs SPY Performance
Fidelity Emerging Markets Multifactor ETF (FDEM) is an ETF from Fidelity Investments (US) and State Street SPDR S&P 500 ETF Trust (SPY) is an ETF from State Street Investment Management. Over the past year FDEM returned +22.05% while SPY returned +17.51%. Year to date, FDEM is up 15.78% versus a gain of 12.47% for SPY.
Over three years, FDEM compounded at +20.69% per year against +21.18% for SPY; over five years the annualized figures are +9.76% and +12.88% respectively. Across the full 8-year window we track, SPY has the edge at +15.46% annualized vs +8.42%.
Past performance does not guarantee future results.
Risk: Volatility and Drawdowns
SPY has been the more volatile fund, with annualized monthly volatility of 16.4% compared with 15.6% for FDEM. 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 -33.6% for FDEM 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 0.72. They usually move together, but the gap leaves some room for diversification.
Fees and Cost Over Time
FDEM charges 0.25% per year while SPY charges 0.09%. On a $10,000 position that is $25 vs $9 annually, a gap of $16 per year that compounds over a long holding period. On income, FDEM currently yields 2.94% against 0.98% for SPY.
Holdings Overlap
0.1% of FDEM's money is in holdings SPY also owns.
We cannot see either book well enough to say how much of this pair is duplicated.
1 positions in common, counted across the 199 positions we hold weights for in FDEM and 504 in SPY, against full books of 239 and 505.
What only one of them owns
Our book lists 494 positions for SPY that do not appear in our book for FDEM (99.5% of the fund), and 6 for FDEM that do not appear in SPY (2.4%).
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.
Top Shared Holdings
| Stock | Weight in FDEM | Weight in SPY | Difference |
|---|---|---|---|
| HAL:MBHindustan Aeronautics Ltd | 0.15% | 0.04% | 0.11% |
You are not choosing between two funds in isolation.
Whichever of FDEM 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, FDEM or SPY?
FDEM has an expense ratio of 0.25% while SPY charges 0.09%. SPY is the cheaper option, by $16 a year on a $10,000 investment.
Which performed better, FDEM or SPY?
Over the past year FDEM returned +22.05% vs +17.51% for SPY, so FDEM leads on 1-year performance. Over the longest common window we track (8 years), FDEM annualized +8.42% vs +15.46% for SPY. Past performance does not guarantee future results. This is information, not a recommendation.
Which is riskier, FDEM or SPY?
SPY has been the more volatile fund at 16.4% annualized versus 15.6% for FDEM. Worst drawdown: FDEM -33.6% vs SPY -34.1%.
Should I hold both FDEM and SPY?
FDEM and SPY have a monthly-return correlation of 0.72, 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, FDEM or SPY?
FDEM yields 2.94% while SPY yields 0.98%, so FDEM currently pays the higher dividend yield.
Is SPY better than FDEM?
SPY has a lower expense ratio. FDEM led over 1Y, SPY over 3Y, 5Y and the full window. SPY is less concentrated, with 38.0% of the fund in its ten largest positions against 38.9%. Which one suits a particular account depends on what it is for. This is information, not a recommendation.