FFEM vs SPY
Fidelity Fundamental Emerging Markets ETF vs State Street SPDR S&P 500 ETF Trust
Quick Verdict
SPY has a lower expense ratio. FFEM delivered stronger 1-year returns. SPY offers more diversification with 505 holdings.
Side-by-Side Comparison
| Metric | FFEM | SPY | Winner |
|---|---|---|---|
| Expense Ratio | 0.60% | 0.09% | |
| AUM | $62M | $821.1B | |
| Dividend Yield | 1.26% | 1.01% | |
| Holdings | 118 | 505 | |
| YTD Return | +23.56% | +13.70% | |
| 1Y Return | +44.74% | +21.44% | |
| 3Y Return (annualized) | - | +22.50% | |
| 5Y Return (annualized) | - | +13.24% | |
| Volatility (annualized) | 18.0% | 15.3% | |
| Max Drawdown | -16.3% | -56.5% | |
| Fund Family | Fidelity Investments (US) | State Street Investment Management | |
| Category | Equity | Equity | |
| Inception | Nov 19, 2024 | Jan 22, 1993 |
FFEM vs SPY Performance
Fidelity Fundamental Emerging Markets ETF (FFEM) 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 FFEM returned +44.74% while SPY returned +21.44%. Year to date, FFEM is up 23.56% versus a gain of 13.70% for SPY.
Risk: Volatility and Drawdowns
FFEM has been the more volatile fund, with annualized monthly volatility of 18.0% 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 -16.3% for FFEM 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 0.73. They usually move together, but the gap leaves some room for diversification.
Fees and Cost Over Time
FFEM charges 0.60% per year while SPY charges 0.09%. On a $10,000 position that is $60 vs $9 annually, a gap of $51 per year that compounds over a long holding period. On income, FFEM currently yields 1.26% against 1.01% for SPY.
Holdings Overlap
FFEM and SPY share 0 holdings out of 610 unique holdings combined, representing a 0.0% weight overlap.
Moderate overlap means holding both could provide meaningful diversification benefits.
Frequently Asked Questions
Which is cheaper, FFEM or SPY?
FFEM has an expense ratio of 0.60% while SPY charges 0.09%. SPY is the cheaper option. On a $10,000 investment, that is $51 per year of difference.
Which performed better, FFEM or SPY?
Over the past year FFEM returned +44.74% vs +21.44% for SPY, so FFEM leads on 1-year performance. Over the longest common window we track (2 years), FFEM annualized +37.39% vs +8.84% for SPY. Past performance does not guarantee future results.
Which is riskier, FFEM or SPY?
FFEM has been the more volatile fund at 18.0% annualized versus 15.3% for SPY. Worst drawdown: FFEM -16.3% vs SPY -56.5%.
Should I hold both FFEM and SPY?
FFEM and SPY have a monthly-return correlation of 0.73, so combining them can provide real diversification depending on your allocation goals.
What is the holdings overlap between FFEM and SPY?
FFEM and SPY share 0 common holdings with a 0.0% weight overlap. Combined, they hold 610 unique securities.
Which pays a higher dividend, FFEM or SPY?
FFEM yields 1.26% while SPY yields 1.01%, so FFEM currently pays the higher dividend yield.
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