FDRR vs SPY

FDRR vs SPY

Which is better, FDRR or SPY?

Large Cap Value against Large Cap Blend.

SPY has a lower expense ratio. FDRR led over 1Y, 3Y and 5Y, SPY over the full window. The two have moved almost in lockstep, correlation 0.95. SPY is less concentrated, with 38.0% of the fund in its ten largest positions against 42.8%.

Lower Fees: SPYHigher Returns: splitLess Concentrated: SPY

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

MetricFDRRSPY
Expense Ratio0.15%0.09%Best
AUM$737M$814.4B
Dividend Yield2.08%1.01%
Holdings116505
YTD Return+15.90%Best+13.34%
1Y Return+25.23%Best+19.97%
3Y Return (annualized)+21.94%Best+21.20%
5Y Return (annualized)+13.25%Best+12.81%
Volatility (annualized)15.2%Best15.4%
Max Drawdown-37.6%-34.1%Best
$10,000 over 5 years$18,629Best$18,270
Top 10 Weight42.8%38.0%Best
Fund FamilyFidelity Investments (US)State Street Investment Management
CategoryEquityEquity
StyleLarge Cap ValueLarge Cap Blend
InceptionSep 12, 2016Jan 22, 1993

Volatility and max drawdown are measured over the window both funds cover: Sep 15, 2016 to Sep 4, 2026 (10 years).

FDRR 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.

FDRR vs SPY Performance

Fidelity Dividend ETF for Rising Rates (FDRR) 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 FDRR returned +25.23% while SPY returned +19.97%. Year to date, FDRR is up 15.90% versus a gain of 13.34% for SPY.

Over three years, FDRR compounded at +21.94% per year against +21.20% for SPY; over five years the annualized figures are +13.25% and +12.81% respectively. Across the full 10-year window we track, SPY has the edge at +14.49% annualized vs +12.42%.

Past performance does not guarantee future results.

Risk: Volatility and Drawdowns

SPY has been the more volatile fund, with annualized monthly volatility of 15.4% compared with 15.2% for FDRR. 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 -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

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 2.08% against 1.01% for SPY.

Holdings Overlap

FDRR already in SPY87.2%
SPY already in FDRR49.1%

87.2% of FDRR's money is in holdings SPY also owns. 49.1% of SPY's money is in holdings FDRR also owns.

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

86 positions in common, counted across the 111 positions we hold weights for in FDRR and 503 in SPY, against full books of 116 and 505.

What only one of them owns

Our book lists 407 positions for SPY that do not appear in our book for FDRR (50.4% of the fund), and 15 for FDRR that do not appear in SPY (8.3%).

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 FDRRWeight in SPYDifference
NVDANvidia Corp.8.34%7.71%0.63%
AAPLApple Inc Ord7.27%6.83%0.44%
MSFTMicrosoft Corp 4.100 Feb 06 376.11%5.50%0.61%
GOOGL Alphabet Inc. Class A4.70%3.33%1.37%
AVGOBroadcom Inc3.89%2.97%0.92%
METAMeta Platform Inc 1.87%1.94%0.07%
DELLDell Technologies Inc.3.31%0.20%3.11%
JPMJpmorgan Chase & Co.2.05%1.44%0.61%
LLYEli Lilly & Co.1.96%1.33%0.63%
CSCOCisco Systems Inc1.97%0.72%1.25%

87.2% of FDRR 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.

FDRRSPY

Free for up to 10 holdings. No account needed.

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, by $6 a year on a $10,000 investment.

Which performed better, FDRR or SPY?

Over the past year FDRR returned +25.23% vs +19.97% for SPY, so FDRR leads on 1-year performance. Over the longest common window we track (10 years), FDRR annualized +12.42% vs +14.49% for SPY. Past performance does not guarantee future results. This is information, not a recommendation.

Which is riskier, FDRR or SPY?

SPY has been the more volatile fund at 15.4% annualized versus 15.2% for FDRR. Worst drawdown: FDRR -37.6% vs SPY -34.1%.

Should I hold both FDRR and SPY?

FDRR 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 FDRR and SPY?

87.2% of FDRR's money is in holdings SPY also owns. 49.1% of SPY's is in holdings FDRR also owns. They hold 86 positions in common, counted across the 111 positions we hold weights for in FDRR and 503 in SPY.

Which pays a higher dividend, FDRR or SPY?

FDRR yields 2.08% while SPY yields 1.01%, so FDRR currently pays the higher dividend yield.

Is SPY better than FDRR?

SPY has a lower expense ratio. FDRR led over 1Y, 3Y and 5Y, SPY over the full window. The two have moved almost in lockstep, correlation 0.95. SPY is less concentrated, with 38.0% of the fund in its ten largest positions against 42.8%. Which one suits a particular account depends on what it is for. This is information, not a recommendation.