FDL vs SPY
First Trust Morningstar Dividend Leaders Index Fund vs State Street SPDR S&P 500 ETF Trust
Which is better, FDL or SPY?
Large Cap Value against Large Cap Blend.
SPY has a lower expense ratio. FDL led over 1Y and 5Y, SPY over 3Y and the full window. SPY is less concentrated, with 38.0% of the fund in its ten largest positions against 49.5%.
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 | FDL | SPY |
|---|---|---|
| Expense Ratio | 0.43% | 0.09%Best |
| AUM | $8.1B | $804.7B |
| Dividend Yield | 3.49% | 0.98% |
| Holdings | 202 | 505 |
| YTD Return | +18.79%Best | +12.47% |
| 1Y Return | +23.17%Best | +17.51% |
| 3Y Return (annualized) | +19.38% | +21.18%Best |
| 5Y Return (annualized) | +13.86%Best | +12.88% |
| Volatility (annualized) | 16.1% | 15.2%Best |
| Max Drawdown | -68.6% | -56.5%Best |
| $10,000 over 5 years | $19,136Best | $18,327 |
| Top 10 Weight | 49.5% | 38.0%Best |
| Fund Family | First Trust Portfolios (US) | State Street Investment Management |
| Category | Equity | Equity |
| Style | Large Cap Value | Large Cap Blend |
| Inception | Mar 9, 2006 | Jan 22, 1993 |
Volatility and max drawdown are measured over the window both funds cover: Mar 15, 2006 to Sep 11, 2026 (20.5 years).
FDL 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 20.5 years both funds cover.
FDL vs SPY Performance
First Trust Morningstar Dividend Leaders Index Fund (FDL) 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 FDL returned +23.17% while SPY returned +17.51%. Year to date, FDL is up 18.79% versus a gain of 12.47% for SPY.
Over three years, FDL compounded at +19.38% per year against +21.18% for SPY; over five years the annualized figures are +13.86% and +12.88% respectively. Across the full 21-year window we track, SPY has the edge at +9.39% annualized vs +5.84%.
Past performance does not guarantee future results.
Risk: Volatility and Drawdowns
FDL has been the more volatile fund, with annualized monthly volatility of 16.1% compared with 15.2% 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 -68.6% for FDL and -56.5% 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 0.75. They usually move together, but the gap leaves some room for diversification.
Fees and Cost Over Time
FDL charges 0.43% per year while SPY charges 0.09%. On a $10,000 position that is $43 vs $9 annually, a gap of $34 per year that compounds over a long holding period. On income, FDL currently yields 3.49% against 0.98% for SPY.
Holdings Overlap
93.3% of FDL's money is in holdings SPY also owns. 5.3% of SPY's money is in holdings FDL also owns.
Most of FDL is already inside SPY. Owning both mostly buys the same companies twice.
60 positions in common, counted across the 100 positions we hold weights for in FDL and 504 in SPY, against full books of 202 and 505.
What only one of them owns
Our book lists 434 positions for SPY that do not appear in our book for FDL (94.2% of the fund), and 40 for FDL that do not appear in SPY (6.2%).
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 FDL | Weight in SPY | Difference |
|---|---|---|---|
| CVXChevron Corp. | 8.53% | 0.54% | 7.99% |
| VZVerizon Communications, Inc. | 7.82% | 0.29% | 7.53% |
| PFEPfizer, Inc. | 6.45% | 0.22% | 6.23% |
| PMPhilip Morris International Inc. | 5.79% | 0.44% | 5.35% |
| PEPPepsico Inc. | 4.63% | 0.29% | 4.34% |
| MOAltria Group Inc. | 4.07% | 0.17% | 3.90% |
| BMYBristol-Myers Squibb Co. | 3.67% | 0.20% | 3.47% |
| CMCSAComcast Corp. Class A | 3.14% | 0.13% | 3.01% |
| UPSUnited Parcel Service, Inc | 2.82% | 0.12% | 2.70% |
| ACNAccenture Plc | 2.60% | 0.16% | 2.44% |
93.3% of FDL is already inside SPY.
You probably hold more than these two. Add the rest and see how much of the whole book is the same companies twice.
Free for up to 10 holdings. No account needed.
Frequently Asked Questions
Which is cheaper, FDL or SPY?
FDL has an expense ratio of 0.43% while SPY charges 0.09%. SPY is the cheaper option, by $34 a year on a $10,000 investment.
Which performed better, FDL or SPY?
Over the past year FDL returned +23.17% vs +17.51% for SPY, so FDL leads on 1-year performance. Over the longest common window we track (21 years), FDL annualized +5.84% vs +9.39% for SPY. Past performance does not guarantee future results. This is information, not a recommendation.
Which is riskier, FDL or SPY?
FDL has been the more volatile fund at 16.1% annualized versus 15.2% for SPY. Worst drawdown: FDL -68.6% vs SPY -56.5%.
Should I hold both FDL and SPY?
FDL and SPY have a monthly-return correlation of 0.75, so their returns are far enough apart for the mix to behave differently from either one alone. This is information, not a recommendation.
What is the holdings overlap between FDL and SPY?
93.3% of FDL's money is in holdings SPY also owns. 5.3% of SPY's is in holdings FDL also owns. They hold 60 positions in common, counted across the 100 positions we hold weights for in FDL and 504 in SPY.
Which pays a higher dividend, FDL or SPY?
FDL yields 3.49% while SPY yields 0.98%, so FDL currently pays the higher dividend yield.
Is SPY better than FDL?
SPY has a lower expense ratio. FDL led over 1Y and 5Y, SPY over 3Y and the full window. SPY is less concentrated, with 38.0% of the fund in its ten largest positions against 49.5%. Which one suits a particular account depends on what it is for. This is information, not a recommendation.