FDMO vs SPY

FDMO vs SPY

Which is better, FDMO or SPY?

Large Cap Growth against Large Cap Blend.

SPY has a lower expense ratio. FDMO led over 3Y, 5Y and the full window, SPY over 1Y. The two have moved almost in lockstep, correlation 0.95. FDMO is less concentrated, with 37.2% of the fund in its ten largest positions against 37.8%.

Lower Fees: SPYHigher Returns: splitLess Concentrated: FDMO

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

MetricFDMOSPY
Expense Ratio0.15%0.09%Best
AUM$904M$804.7B
Dividend Yield0.61%0.98%
Holdings140505
YTD Return+11.68%+12.22%Best
1Y Return+15.50%+16.97%Best
3Y Return (annualized)+25.66%Best+21.16%
5Y Return (annualized)+14.18%Best+13.00%
Volatility (annualized)16.4%15.4%Best
Max Drawdown-34.2%-34.1%Best
$10,000 over 5 years$19,407Best$18,424
Top 10 Weight37.2%Best37.8%
Fund FamilyFidelity Investments (US)State Street Investment Management
CategoryEquityEquity
StyleLarge Cap GrowthLarge Cap Blend
InceptionSep 12, 2016Jan 22, 1993

Volatility and max drawdown are measured over the window both funds cover: Sep 15, 2016 to Sep 17, 2026 (10 years).

FDMO 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 years both funds cover.

FDMO vs SPY Performance

Fidelity Momentum Factor ETF (FDMO) 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 FDMO returned +15.50% while SPY returned +16.97%. Year to date, FDMO is up 11.68% versus a gain of 12.22% for SPY.

Over three years, FDMO compounded at +25.66% per year against +21.16% for SPY; over five years the annualized figures are +14.18% and +13.00% respectively. Across the full 10-year window we track, FDMO has the edge at +14.62% annualized vs +14.32%.

Past performance does not guarantee future results.

Risk: Volatility and Drawdowns

FDMO has been the more volatile fund, with annualized monthly volatility of 16.4% compared with 15.4% 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 -34.2% for FDMO 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 0.95. They move almost in lockstep, so holding both mostly duplicates the same exposure.

Fees and Cost Over Time

FDMO charges 0.15% per year while SPY charges 0.09%. On a $10,000 position that is $15 vs $9 annually, a gap of $6 per year that compounds over a long holding period. On income, FDMO currently yields 0.61% against 0.98% for SPY.

Holdings Overlap

FDMO already in SPY91.0%
SPY already in FDMO52.6%

91.0% of FDMO's money is in holdings SPY also owns. 52.6% of SPY's money is in holdings FDMO also owns.

Most of FDMO is already inside SPY. Owning both mostly buys the same companies twice.

103 positions in common, counted across the 134 positions we hold weights for in FDMO and 504 in SPY, against full books of 140 and 505.

What only one of them owns

Our book lists 395 positions for SPY that do not appear in our book for FDMO (46.9% of the fund), and 27 for FDMO that do not appear in SPY (8.1%).

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

StockWeight in FDMOWeight in SPYDifference
NVDANvidia Corp8.70%8.01%0.69%
AAPLApple, Inc7.80%7.26%0.54%
GOOGLAlphabet Inc,class A5.41%2.99%2.42%
AMZNAmazon.Com Inc3.62%3.79%0.17%
MUMicron Technology, Inc.2.71%1.60%1.11%
AMDAdvanced Micro Devices Inc2.08%1.14%0.94%
JPMJpmorgan Chase1.75%1.45%0.30%
LLYEli Lilly & Co.1.74%1.40%0.34%
TSLATesla Inc1.58%1.52%0.06%
BRK.BBerkshire Hathaway Inc Brk/B Us Equity1.70%1.40%0.30%

91.0% of FDMO 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.

FDMOSPY

Free for up to 10 holdings. No account needed.

Frequently Asked Questions

Which is cheaper, FDMO or SPY?

FDMO has an expense ratio of 0.15% while SPY charges 0.09%. SPY is the cheaper option, by $6 a year on a $10,000 investment.

Which performed better, FDMO or SPY?

Over the past year FDMO returned +15.50% vs +16.97% for SPY, so SPY leads on 1-year performance. Over the longest common window we track (10 years), FDMO annualized +14.62% vs +14.32% for SPY. Past performance does not guarantee future results. This is information, not a recommendation.

Which is riskier, FDMO or SPY?

FDMO has been the more volatile fund at 16.4% annualized versus 15.4% for SPY. Worst drawdown: FDMO -34.2% vs SPY -34.1%.

Should I hold both FDMO and SPY?

FDMO and SPY have a monthly-return correlation of 0.95, so they move almost identically. What is left to separate them is the fee and the index each one tracks. This is information, not a recommendation.

What is the holdings overlap between FDMO and SPY?

91.0% of FDMO's money is in holdings SPY also owns. 52.6% of SPY's is in holdings FDMO also owns. They hold 103 positions in common, counted across the 134 positions we hold weights for in FDMO and 504 in SPY.

Which pays a higher dividend, FDMO or SPY?

FDMO yields 0.61% while SPY yields 0.98%, so SPY currently pays the higher dividend yield.

Is SPY better than FDMO?

SPY has a lower expense ratio. FDMO led over 3Y, 5Y and the full window, SPY over 1Y. The two have moved almost in lockstep, correlation 0.95. FDMO is less concentrated, with 37.2% of the fund in its ten largest positions against 37.8%. Which one suits a particular account depends on what it is for. This is information, not a recommendation.