FESM vs SPY
Fidelity Enhanced Small Cap Core ETF vs State Street SPDR S&P 500 ETF Trust
Which is better, FESM or SPY?
Small Cap Blend against Large Cap Blend.
SPY has a lower expense ratio. FESM led over 1Y and the full window. FESM is less concentrated, with 6.7% of the fund in its ten largest positions against 37.8%.
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 | FESM | SPY |
|---|---|---|
| Expense Ratio | 0.28% | 0.09%Best |
| AUM | $6.0B | $804.7B |
| Dividend Yield | 0.72% | 0.98% |
| Holdings | 789 | 505 |
| YTD Return | +21.08%Best | +13.82% |
| 1Y Return | +24.93%Best | +16.96% |
| 3Y Return (annualized) | - | +22.97% |
| 5Y Return (annualized) | - | +13.73% |
| Volatility (annualized) | 19.7% | 11.7%Best |
| Max Drawdown | -26.9% | -18.8%Best |
| $10,000 over 2.8 years | $18,599Best | $17,487 |
| Top 10 Weight | 6.7%Best | 37.8% |
| Fund Family | Fidelity Investments (US) | State Street Investment Management |
| Category | Equity | Equity |
| Style | Small Cap Blend | Large Cap Blend |
| Inception | Nov 20, 2023 | Jan 22, 1993 |
Volatility and max drawdown, and the $10,000 over 2.8 years row, are measured over the window both funds cover: Nov 20, 2023 to Sep 21, 2026 (2.8 years).
FESM 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 2.8 years both funds cover.
FESM vs SPY Performance
Fidelity Enhanced Small Cap Core ETF (FESM) 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 FESM returned +24.93% while SPY returned +16.96%. Year to date, FESM is up 21.08% versus a gain of 13.82% for SPY.
Past performance does not guarantee future results.
Risk: Volatility and Drawdowns
FESM has been the more volatile fund, with annualized monthly volatility of 19.7% compared with 11.7% 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 -26.9% for FESM and -18.8% 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 0.78. They usually move together, but the gap leaves some room for diversification.
Fees and Cost Over Time
FESM charges 0.28% per year while SPY charges 0.09%. On a $10,000 position that is $28 vs $9 annually, a gap of $19 per year that compounds over a long holding period. On income, FESM currently yields 0.72% against 0.98% for SPY.
Holdings Overlap
0.1% of SPY's money is in holdings FESM also owns.
We cannot see either book well enough to say how much of this pair is duplicated.
3 positions in common, counted across the 845 positions we hold weights for in FESM and 504 in SPY, against full books of 789 and 505.
What only one of them owns
Our book lists 494 positions for SPY that do not appear in our book for FESM (99.2% of the fund), and 705 for FESM that do not appear in SPY (94.0%).
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 FESM 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, FESM or SPY?
FESM has an expense ratio of 0.28% while SPY charges 0.09%. SPY is the cheaper option, by $19 a year on a $10,000 investment.
Which performed better, FESM or SPY?
Over the past year FESM returned +24.93% vs +16.96% for SPY, so FESM leads on 1-year performance. Past performance does not guarantee future results. This is information, not a recommendation.
Which is riskier, FESM or SPY?
FESM has been the more volatile fund at 19.7% annualized versus 11.7% for SPY. Worst drawdown: FESM -26.9% vs SPY -18.8%.
Should I hold both FESM and SPY?
FESM and SPY have a monthly-return correlation of 0.78, 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, FESM or SPY?
FESM yields 0.72% while SPY yields 0.98%, so SPY currently pays the higher dividend yield.
Is SPY better than FESM?
SPY has a lower expense ratio. FESM led over 1Y and the full window. FESM is less concentrated, with 6.7% 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.