FGD vs SPY
First Trust Dow Jones Global Select Dividend Index Fund vs State Street SPDR S&P 500 ETF Trust
Quick Verdict
SPY has a lower expense ratio. FGD delivered stronger 1-year returns. SPY offers more diversification with 505 holdings.
Side-by-Side Comparison
| Metric | FGD | SPY | Winner |
|---|---|---|---|
| Expense Ratio | 0.55% | 0.09% | |
| AUM | $1.6B | $821.1B | |
| Dividend Yield | 5.04% | 1.01% | |
| Holdings | 109 | 505 | |
| YTD Return | +17.35% | +12.93% | |
| 1Y Return | +29.65% | +20.62% | |
| 3Y Return (annualized) | +25.81% | +22.00% | |
| 5Y Return (annualized) | +12.78% | +13.33% | |
| Volatility (annualized) | 20.2% | 15.3% | |
| Max Drawdown | -70.2% | -56.5% | |
| Fund Family | First Trust Portfolios (US) | State Street Investment Management | |
| Category | Equity | Equity | |
| Inception | Nov 21, 2007 | Jan 22, 1993 |
FGD vs SPY Performance
First Trust Dow Jones Global Select Dividend Index Fund (FGD) is a ETF from First Trust Portfolios (US) and State Street SPDR S&P 500 ETF Trust (SPY) is a ETF from State Street Investment Management. Over the past year FGD returned +29.65% while SPY returned +20.62%. Year to date, FGD is up 17.35% versus a gain of 12.93% for SPY.
Over three years, FGD compounded at +25.81% per year against +22.00% for SPY; over five years the annualized figures are +12.78% and +13.33% respectively. Across the full 19-year window we track, SPY has the edge at +8.82% annualized vs +2.57%. Past performance does not guarantee future results.
Risk: Volatility and Drawdowns
FGD has been the more volatile fund, with annualized monthly volatility of 20.2% 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 -70.2% for FGD 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 0.80. They usually move together, but the gap leaves some room for diversification.
Fees and Cost Over Time
FGD charges 0.55% per year while SPY charges 0.09%. On a $10,000 position that is $55 vs $9 annually, a gap of $46 per year that compounds over a long holding period. On income, FGD currently yields 5.04% against 1.01% for SPY.
Holdings Overlap
FGD and SPY share 10 holdings out of 593 unique holdings combined, representing a 0.9% weight overlap.
Moderate overlap means holding both could provide meaningful diversification benefits.
Frequently Asked Questions
Which is cheaper, FGD or SPY?
FGD has an expense ratio of 0.55% while SPY charges 0.09%. SPY is the cheaper option. On a $10,000 investment, that is $46 per year of difference.
Which performed better, FGD or SPY?
Over the past year FGD returned +29.65% vs +20.62% for SPY, so FGD leads on 1-year performance. Over the longest common window we track (19 years), FGD annualized +2.57% vs +8.82% for SPY. Past performance does not guarantee future results.
Which is riskier, FGD or SPY?
FGD has been the more volatile fund at 20.2% annualized versus 15.3% for SPY. Worst drawdown: FGD -70.2% vs SPY -56.5%.
Should I hold both FGD and SPY?
FGD and SPY have a monthly-return correlation of 0.80, so combining them can provide real diversification depending on your allocation goals.
What is the holdings overlap between FGD and SPY?
FGD and SPY share 10 common holdings with a 0.9% weight overlap. Combined, they hold 593 unique securities.
Which pays a higher dividend, FGD or SPY?
FGD yields 5.04% while SPY yields 1.01%, so FGD currently pays the higher dividend yield.
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