FGM vs SPY
First Trust Germany AlphaDEX Fund vs State Street SPDR S&P 500 ETF Trust
Quick Verdict
SPY has a lower expense ratio. SPY delivered stronger 1-year returns. SPY offers more diversification with 505 holdings.
Side-by-Side Comparison
| Metric | FGM | SPY | Winner |
|---|---|---|---|
| Expense Ratio | 0.80% | 0.09% | |
| AUM | $98M | $821.1B | |
| Dividend Yield | 1.40% | 1.01% | |
| Holdings | 42 | 505 | |
| YTD Return | +0.81% | +13.17% | |
| 1Y Return | +11.05% | +21.53% | |
| 3Y Return (annualized) | +20.38% | +22.06% | |
| 5Y Return (annualized) | +4.59% | +13.35% | |
| Volatility (annualized) | 19.8% | 15.3% | |
| Max Drawdown | -53.6% | -56.5% | |
| Fund Family | First Trust Portfolios (US) | State Street Investment Management | |
| Category | Equity | Equity | |
| Inception | Feb 14, 2012 | Jan 22, 1993 |
FGM vs SPY Performance
First Trust Germany AlphaDEX Fund (FGM) 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 FGM returned +11.05% while SPY returned +21.53%. Year to date, FGM is up 0.81% versus a gain of 13.17% for SPY.
Over three years, FGM compounded at +20.38% per year against +22.06% for SPY; over five years the annualized figures are +4.59% and +13.35% respectively. Across the full 15-year window we track, SPY has the edge at +8.82% annualized vs +6.10%. Past performance does not guarantee future results.
Risk: Volatility and Drawdowns
FGM has been the more volatile fund, with annualized monthly volatility of 19.8% 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 -53.6% for FGM 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 0.75. They usually move together, but the gap leaves some room for diversification.
Fees and Cost Over Time
FGM charges 0.80% per year while SPY charges 0.09%. On a $10,000 position that is $80 vs $9 annually, a gap of $71 per year that compounds over a long holding period. On income, FGM currently yields 1.40% against 1.01% for SPY.
Holdings Overlap
FGM and SPY share 1 holdings out of 543 unique holdings combined, representing a 0.5% weight overlap.
Moderate overlap means holding both could provide meaningful diversification benefits.
Top Shared Holdings
| Stock | Weight in FGM | Weight in SPY | Difference |
|---|---|---|---|
| MRK | 1.64% | 0.47% | 1.17% |
Frequently Asked Questions
Which is cheaper, FGM or SPY?
FGM has an expense ratio of 0.80% while SPY charges 0.09%. SPY is the cheaper option. On a $10,000 investment, that is $71 per year of difference.
Which performed better, FGM or SPY?
Over the past year FGM returned +11.05% vs +21.53% for SPY, so SPY leads on 1-year performance. Over the longest common window we track (15 years), FGM annualized +6.10% vs +8.82% for SPY. Past performance does not guarantee future results.
Which is riskier, FGM or SPY?
FGM has been the more volatile fund at 19.8% annualized versus 15.3% for SPY. Worst drawdown: FGM -53.6% vs SPY -56.5%.
Should I hold both FGM and SPY?
FGM and SPY have a monthly-return correlation of 0.75, so combining them can provide real diversification depending on your allocation goals.
What is the holdings overlap between FGM and SPY?
FGM and SPY share 1 common holdings with a 0.5% weight overlap. Combined, they hold 543 unique securities.
Which pays a higher dividend, FGM or SPY?
FGM yields 1.40% while SPY yields 1.01%, so FGM currently pays the higher dividend yield.
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