FEDM vs SPY
Northern Trust ESG & Climate Developed Markets ex-US Core ETF vs State Street SPDR S&P 500 ETF Trust
Which is better, FEDM or SPY?
Each has led over a different period.
SPY has a lower expense ratio. FEDM led over 1Y, SPY over 3Y, 5Y and the full window. FEDM is less concentrated, with 17.0% of the fund in its ten largest positions against 38.0%.
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 | FEDM | SPY |
|---|---|---|
| Expense Ratio | 0.12% | 0.09%Best |
| AUM | $85M | $814.4B |
| Dividend Yield | 2.87% | 1.01% |
| Holdings | 265 | 505 |
| YTD Return | +13.52%Best | +13.34% |
| 1Y Return | +22.45%Best | +19.97% |
| 3Y Return (annualized) | +17.50% | +21.20%Best |
| 5Y Return (annualized) | +8.79% | +12.81%Best |
| Volatility (annualized) | 15.6%Best | 15.7% |
| Max Drawdown | -29.4% | -24.5%Best |
| $10,000 over 5 years | $15,239 | $18,270Best |
| Top 10 Weight | 17.0%Best | 38.0% |
| Fund Family | Northern Trust Asset Management | State Street Investment Management |
| Category | Equity | Equity |
| Style | Large Cap Blend | Large Cap Blend |
| Inception | Sep 20, 2021 | Jan 22, 1993 |
Volatility and max drawdown are measured over the window both funds cover: Sep 21, 2021 to Sep 4, 2026 (5 years).
FEDM 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 5 years both funds cover.
FEDM vs SPY Performance
Northern Trust ESG & Climate Developed Markets ex-US Core ETF (FEDM) is an ETF from Northern Trust Asset Management and State Street SPDR S&P 500 ETF Trust (SPY) is an ETF from State Street Investment Management. Over the past year FEDM returned +22.45% while SPY returned +19.97%. Year to date, FEDM is up 13.52% versus a gain of 13.34% for SPY.
Over three years, FEDM compounded at +17.50% per year against +21.20% for SPY; over five years the annualized figures are +8.79% and +12.81% respectively.
Past performance does not guarantee future results.
Risk: Volatility and Drawdowns
SPY has been the more volatile fund, with annualized monthly volatility of 15.7% compared with 15.6% for FEDM. 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 -29.4% for FEDM and -24.5% 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 0.79. They usually move together, but the gap leaves some room for diversification.
Fees and Cost Over Time
FEDM charges 0.12% per year while SPY charges 0.09%. On a $10,000 position that is $12 vs $9 annually, a gap of $3 per year that compounds over a long holding period. On income, FEDM currently yields 2.87% against 1.01% for SPY.
Holdings Overlap
0.3% of FEDM's money is in holdings SPY also owns. 0.1% of SPY's money is in holdings FEDM also owns.
We cannot see either book well enough to say how much of this pair is duplicated.
2 positions in common, counted across the 218 positions we hold weights for in FEDM and 504 in SPY, against full books of 265 and 505.
What only one of them owns
Our book lists 494 positions for SPY that do not appear in our book for FEDM (99.3% of the fund), and 2 for FEDM that do not appear in SPY (0.8%).
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.
You are not choosing between two funds in isolation.
Whichever of FEDM and SPY you pick has to sit alongside everything else you own. Add the rest and see what the combination actually holds.
Free for up to 10 holdings. No account needed.
Frequently Asked Questions
Which is cheaper, FEDM or SPY?
FEDM has an expense ratio of 0.12% while SPY charges 0.09%. SPY is the cheaper option, by $3 a year on a $10,000 investment.
Which performed better, FEDM or SPY?
Over the past year FEDM returned +22.45% vs +19.97% for SPY, so FEDM leads on 1-year performance. Past performance does not guarantee future results. This is information, not a recommendation.
Which is riskier, FEDM or SPY?
SPY has been the more volatile fund at 15.7% annualized versus 15.6% for FEDM. Worst drawdown: FEDM -29.4% vs SPY -24.5%.
Should I hold both FEDM and SPY?
FEDM and SPY have a monthly-return correlation of 0.79, so their returns are far enough apart for the mix to behave differently from either one alone. This is information, not a recommendation.
Which pays a higher dividend, FEDM or SPY?
FEDM yields 2.87% while SPY yields 1.01%, so FEDM currently pays the higher dividend yield.
Is SPY better than FEDM?
SPY has a lower expense ratio. FEDM led over 1Y, SPY over 3Y, 5Y and the full window. FEDM is less concentrated, with 17.0% of the fund in its ten largest positions against 38.0%. Which one suits a particular account depends on what it is for. This is information, not a recommendation.