FGDL vs SPY

Quick Verdict

SPY has a lower expense ratio. FGDL delivered stronger 1-year returns. SPY offers more diversification with 505 holdings.

Lower Fees: SPYHigher Returns: FGDLMore Diversified: SPY

Side-by-Side Comparison

MetricFGDLSPYWinner
Expense Ratio0.15%0.09%
AUM$415M$789.1B
Dividend Yield0.00%1.01%
Holdings2505
YTD Return-0.20%+14.47%
1Y Return+29.33%+21.96%
3Y Return (annualized)+31.43%+21.70%
5Y Return (annualized)-+13.30%
Volatility (annualized)17.7%15.3%
Max Drawdown-26.6%-56.5%
Fund FamilyFranklin Templeton Investments (US)State Street Investment Management
CategoryAlternativeEquity
InceptionJun 30, 2022Jan 22, 1993

FGDL vs SPY Performance

Franklin Responsibly Sourced Gold ETF (FGDL) is a ETF from Franklin Templeton Investments (US) and State Street SPDR S&P 500 ETF Trust (SPY) is a ETF from State Street Investment Management. Over the past year FGDL returned +29.33% while SPY returned +21.96%. Year to date, FGDL is down 0.20% versus a gain of 14.47% for SPY.

Over three years, FGDL compounded at +31.43% per year against +21.70% for SPY. Across the full 4-year window we track, FGDL has the edge at +23.57% annualized vs +8.87%. Past performance does not guarantee future results.

Risk: Volatility and Drawdowns

FGDL has been the more volatile fund, with annualized monthly volatility of 17.7% 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 -26.6% for FGDL 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 0.11. They move independently enough that combining them can meaningfully diversify a portfolio.

Fees and Cost Over Time

FGDL charges 0.15% per year while SPY charges 0.09%. On a $10,000 position that is $15 vs $9 annually, a gap of $6 per year that compounds over a long holding period. On income, FGDL currently yields 0.00% against 1.01% for SPY.

Frequently Asked Questions

Which is cheaper, FGDL or SPY?

FGDL has an expense ratio of 0.15% while SPY charges 0.09%. SPY is the cheaper option. On a $10,000 investment, that is $6 per year of difference.

Which performed better, FGDL or SPY?

Over the past year FGDL returned +29.33% vs +21.96% for SPY, so FGDL leads on 1-year performance. Over the longest common window we track (4 years), FGDL annualized +23.57% vs +8.87% for SPY. Past performance does not guarantee future results.

Which is riskier, FGDL or SPY?

FGDL has been the more volatile fund at 17.7% annualized versus 15.3% for SPY. Worst drawdown: FGDL -26.6% vs SPY -56.5%.

Should I hold both FGDL and SPY?

FGDL and SPY have a monthly-return correlation of 0.11, so combining them can provide real diversification depending on your allocation goals.

Which pays a higher dividend, FGDL or SPY?

FGDL yields 0.00% while SPY yields 1.01%, so SPY currently pays the higher dividend yield.

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