FEBP vs SPY

Quick Verdict

SPY has a lower expense ratio. SPY delivered stronger 1-year returns. SPY offers more diversification with 503 holdings.

Lower Fees: SPYHigher Returns: SPYMore Diversified: SPY

Side-by-Side Comparison

MetricFEBPSPYWinner
Expense Ratio0.50%0.09%
AUM$25M$789.1B
Dividend Yield0.00%1.01%
Holdings7505
YTD Return+8.79%+13.75%
1Y Return+15.69%+22.91%
3Y Return (annualized)-+21.67%
5Y Return (annualized)-+13.32%
Volatility (annualized)6.5%15.3%
Max Drawdown-12.1%-56.5%
Fund FamilyPGIM InvestmentsState Street Investment Management
CategoryAlternativeEquity
InceptionJan 31, 2024Jan 22, 1993

FEBP vs SPY Performance

PGIM S&P 500 Buffer 12 ETF - February (FEBP) is a ETF from PGIM Investments and State Street SPDR S&P 500 ETF Trust (SPY) is a ETF from State Street Investment Management. Over the past year FEBP returned +15.69% while SPY returned +22.91%. Year to date, FEBP is up 8.79% versus a gain of 13.75% for SPY.

Risk: Volatility and Drawdowns

SPY has been the more volatile fund, with annualized monthly volatility of 15.3% compared with 6.5% for FEBP. 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 -12.1% for FEBP 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

FEBP charges 0.50% per year while SPY charges 0.09%. On a $10,000 position that is $50 vs $9 annually, a gap of $41 per year that compounds over a long holding period. On income, FEBP currently yields 0.00% against 1.01% for SPY.

Frequently Asked Questions

Which is cheaper, FEBP or SPY?

FEBP has an expense ratio of 0.50% while SPY charges 0.09%. SPY is the cheaper option. On a $10,000 investment, that is $41 per year of difference.

Which performed better, FEBP or SPY?

Over the past year FEBP returned +15.69% vs +22.91% for SPY, so SPY leads on 1-year performance. Over the longest common window we track (3 years), FEBP annualized +13.51% vs +8.85% for SPY. Past performance does not guarantee future results.

Which is riskier, FEBP or SPY?

SPY has been the more volatile fund at 15.3% annualized versus 6.5% for FEBP. Worst drawdown: FEBP -12.1% vs SPY -56.5%.

Should I hold both FEBP and SPY?

FEBP 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.

Which pays a higher dividend, FEBP or SPY?

FEBP yields 0.00% while SPY yields 1.01%, so SPY currently pays the higher dividend yield.

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