FDEM vs SPY
Fidelity Emerging Markets Multifactor ETF vs State Street SPDR S&P 500 ETF Trust
Quick Verdict
SPY has a lower expense ratio. FDEM delivered stronger 1-year returns. SPY offers more diversification with 505 holdings.
Side-by-Side Comparison
| Metric | FDEM | SPY | Winner |
|---|---|---|---|
| Expense Ratio | 0.25% | 0.09% | |
| AUM | $581M | $821.1B | |
| Dividend Yield | 3.00% | 1.01% | |
| Holdings | 208 | 505 | |
| YTD Return | +11.48% | +12.93% | |
| 1Y Return | +22.28% | +20.62% | |
| 3Y Return (annualized) | +20.29% | +22.00% | |
| 5Y Return (annualized) | +9.69% | +13.33% | |
| Volatility (annualized) | 15.6% | 15.3% | |
| Max Drawdown | -33.6% | -56.5% | |
| Fund Family | Fidelity Investments (US) | State Street Investment Management | |
| Category | Equity | Equity | |
| Inception | Feb 26, 2019 | Jan 22, 1993 |
FDEM vs SPY Performance
Fidelity Emerging Markets Multifactor ETF (FDEM) is a ETF from Fidelity Investments (US) and State Street SPDR S&P 500 ETF Trust (SPY) is a ETF from State Street Investment Management. Over the past year FDEM returned +22.28% while SPY returned +20.62%. Year to date, FDEM is up 11.48% versus a gain of 12.93% for SPY.
Over three years, FDEM compounded at +20.29% per year against +22.00% for SPY; over five years the annualized figures are +9.69% and +13.33% respectively. Across the full 8-year window we track, SPY has the edge at +8.82% annualized vs +7.94%. Past performance does not guarantee future results.
Risk: Volatility and Drawdowns
FDEM has been the more volatile fund, with annualized monthly volatility of 15.6% 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 -33.6% for FDEM 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 0.72. 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 3.00% against 1.01% for SPY.
Holdings Overlap
FDEM and SPY share 0 holdings out of 703 unique holdings combined, representing a 0.0% weight overlap.
Moderate overlap means holding both could provide meaningful diversification benefits.
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. On a $10,000 investment, that is $16 per year of difference.
Which performed better, FDEM or SPY?
Over the past year FDEM returned +22.28% vs +20.62% for SPY, so FDEM leads on 1-year performance. Over the longest common window we track (8 years), FDEM annualized +7.94% vs +8.82% for SPY. Past performance does not guarantee future results.
Which is riskier, FDEM or SPY?
FDEM has been the more volatile fund at 15.6% annualized versus 15.3% for SPY. Worst drawdown: FDEM -33.6% vs SPY -56.5%.
Should I hold both FDEM and SPY?
FDEM and SPY have a monthly-return correlation of 0.72, so combining them can provide real diversification depending on your allocation goals.
What is the holdings overlap between FDEM and SPY?
FDEM and SPY share 0 common holdings with a 0.0% weight overlap. Combined, they hold 703 unique securities.
Which pays a higher dividend, FDEM or SPY?
FDEM yields 3.00% while SPY yields 1.01%, so FDEM currently pays the higher dividend yield.
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