FDRR vs SPY
Fidelity Dividend ETF for Rising Rates vs State Street SPDR S&P 500 ETF Trust
Quick Verdict
SPY has a lower expense ratio. FDRR delivered stronger 1-year returns. SPY offers more diversification with 503 holdings.
Side-by-Side Comparison
| Metric | FDRR | SPY | Winner |
|---|---|---|---|
| Expense Ratio | 0.15% | 0.09% | |
| AUM | $709M | $789.1B | |
| Dividend Yield | 2.16% | 1.01% | |
| Holdings | 124 | 505 | |
| YTD Return | +15.69% | +14.47% | |
| 1Y Return | +25.86% | +21.96% | |
| 3Y Return (annualized) | +21.68% | +21.70% | |
| 5Y Return (annualized) | +13.01% | +13.30% | |
| Volatility (annualized) | 15.3% | 15.3% | |
| Max Drawdown | -37.6% | -56.5% | |
| Fund Family | Fidelity Investments (US) | State Street Investment Management | |
| Category | Equity | Equity | |
| Inception | Sep 12, 2016 | Jan 22, 1993 |
FDRR vs SPY Performance
Fidelity Dividend ETF for Rising Rates (FDRR) 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 FDRR returned +25.86% while SPY returned +21.96%. Year to date, FDRR is up 15.69% versus a gain of 14.47% for SPY.
Over three years, FDRR compounded at +21.68% per year against +21.70% for SPY; over five years the annualized figures are +13.01% and +13.30% respectively. Across the full 10-year window we track, FDRR has the edge at +12.48% annualized vs +8.87%. Past performance does not guarantee future results.
Risk: Volatility and Drawdowns
FDRR has been the more volatile fund, with annualized monthly volatility of 15.3% 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 -37.6% for FDRR 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 0.95. They move almost in lockstep, so holding both mostly duplicates the same exposure.
Fees and Cost Over Time
FDRR 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, FDRR currently yields 2.16% against 1.01% for SPY.
Holdings Overlap
FDRR and SPY share 86 holdings out of 529 unique holdings combined, representing a 47.7% weight overlap.
Moderate overlap means holding both could provide meaningful diversification benefits.
Frequently Asked Questions
Which is cheaper, FDRR or SPY?
FDRR has an expense ratio of 0.15% while SPY charges 0.09%. SPY is the cheaper option. On a $10,000 investment, that is $6 per year of difference.
Which performed better, FDRR or SPY?
Over the past year FDRR returned +25.86% vs +21.96% for SPY, so FDRR leads on 1-year performance. Over the longest common window we track (10 years), FDRR annualized +12.48% vs +8.87% for SPY. Past performance does not guarantee future results.
Which is riskier, FDRR or SPY?
FDRR has been the more volatile fund at 15.3% annualized versus 15.3% for SPY. Worst drawdown: FDRR -37.6% vs SPY -56.5%.
Should I hold both FDRR and SPY?
FDRR and SPY have a monthly-return correlation of 0.95, so they move almost identically. Holding both adds little diversification - most investors pick one, usually on fees or the specific index tracked.
What is the holdings overlap between FDRR and SPY?
FDRR and SPY share 86 common holdings with a 47.7% weight overlap. Combined, they hold 529 unique securities.
Which pays a higher dividend, FDRR or SPY?
FDRR yields 2.16% while SPY yields 1.01%, so FDRR currently pays the higher dividend yield.
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