FFEM vs SPY
Fidelity Fundamental Emerging Markets ETF vs State Street SPDR S&P 500 ETF Trust
Which is better, FFEM or SPY?
Large Cap Growth against Large Cap Blend.
SPY has a lower expense ratio. FFEM led over 1Y and the full window. SPY is less concentrated, with 38.0% of the fund in its ten largest positions against 52.2%.
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 | FFEM | SPY |
|---|---|---|
| Expense Ratio | 0.60% | 0.09%Best |
| AUM | $62M | $814.4B |
| Dividend Yield | 1.26% | 1.01% |
| Holdings | 125 | 505 |
| YTD Return | +25.07%Best | +13.34% |
| 1Y Return | +47.60%Best | +19.97% |
| 3Y Return (annualized) | - | +21.20% |
| 5Y Return (annualized) | - | +12.81% |
| Volatility (annualized) | 17.6% | 12.6%Best |
| Max Drawdown | -16.3%Best | -18.8% |
| $10,000 over 1.8 years | $17,651Best | $13,272 |
| Top 10 Weight | 52.2% | 38.0%Best |
| Fund Family | Fidelity Investments (US) | State Street Investment Management |
| Category | Equity | Equity |
| Style | Large Cap Growth | Large Cap Blend |
| Inception | Nov 19, 2024 | Jan 22, 1993 |
Volatility and max drawdown, and the $10,000 over 1.8 years row, are measured over the window both funds cover: Nov 21, 2024 to Sep 4, 2026 (1.8 years).
FFEM 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 1.8 years both funds cover.
FFEM vs SPY Performance
Fidelity Fundamental Emerging Markets ETF (FFEM) 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 FFEM returned +47.60% while SPY returned +19.97%. Year to date, FFEM is up 25.07% versus a gain of 13.34% for SPY.
Past performance does not guarantee future results.
Risk: Volatility and Drawdowns
FFEM has been the more volatile fund, with annualized monthly volatility of 17.6% compared with 12.6% 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 -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 0.73. 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
We hold position weights for 106 holdings in FFEM and 504 in SPY, totalling 98.5% and 100.0% of the two funds. The two books name no position in common, so there is no overlap percentage to show.
0 positions in common, counted across the 106 positions we hold weights for in FFEM and 504 in SPY, against full books of 125 and 505.
What only one of them owns
Our book lists 496 positions for SPY that do not appear in our book for FFEM (99.5% of the fund), and 9 for FFEM that do not appear in SPY (4.5%).
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 FFEM 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, FFEM or SPY?
FFEM has an expense ratio of 0.60% while SPY charges 0.09%. SPY is the cheaper option, by $51 a year on a $10,000 investment.
Which performed better, FFEM or SPY?
Over the past year FFEM returned +47.60% vs +19.97% for SPY, so FFEM leads on 1-year performance. Over the longest common window we track (2 years), FFEM annualized +37.12% vs +17.03% for SPY. Past performance does not guarantee future results. This is information, not a recommendation.
Which is riskier, FFEM or SPY?
FFEM has been the more volatile fund at 17.6% annualized versus 12.6% for SPY. Worst drawdown: FFEM -16.3% vs SPY -18.8%.
Should I hold both FFEM and SPY?
FFEM and SPY have a monthly-return correlation of 0.73, 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, FFEM or SPY?
FFEM yields 1.26% while SPY yields 1.01%, so FFEM currently pays the higher dividend yield.
Is SPY better than FFEM?
SPY has a lower expense ratio. FFEM led over 1Y and the full window. SPY is less concentrated, with 38.0% of the fund in its ten largest positions against 52.2%. Which one suits a particular account depends on what it is for. This is information, not a recommendation.