FGM vs SPY

FGM vs SPY

Which is better, FGM or SPY?

Mid Cap Blend against Large Cap Blend.

SPY has a lower expense ratio. FGM led over 3Y, SPY over 1Y, 5Y and the full window. SPY is less concentrated, with 38.0% of the fund in its ten largest positions against 40.1%.

Lower Fees: SPYHigher Returns: splitLess Concentrated: SPY

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

MetricFGMSPY
Expense Ratio0.80%0.09%Best
AUM$100M$814.4B
Dividend Yield1.40%1.01%
Holdings84505
YTD Return+3.33%+12.71%Best
1Y Return+14.01%+19.36%Best
3Y Return (annualized)+21.77%Best+21.09%
5Y Return (annualized)+4.75%+12.69%Best
Volatility (annualized)19.8%14.0%Best
Max Drawdown-53.6%-34.1%Best
$10,000 over 5 years$12,612$18,173Best
Top 10 Weight40.1%38.0%Best
Fund FamilyFirst Trust Portfolios (US)State Street Investment Management
CategoryEquityEquity
StyleMid Cap BlendLarge Cap Blend
InceptionFeb 14, 2012Jan 22, 1993

Volatility and max drawdown are measured over the window both funds cover: Feb 17, 2012 to Sep 8, 2026 (14.6 years).

FGM 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 14.6 years both funds cover.

FGM vs SPY Performance

First Trust Germany AlphaDEX Fund (FGM) is an ETF from First Trust Portfolios (US) and State Street SPDR S&P 500 ETF Trust (SPY) is an ETF from State Street Investment Management. Over the past year FGM returned +14.01% while SPY returned +19.36%. Year to date, FGM is up 3.33% versus a gain of 12.71% for SPY.

Over three years, FGM compounded at +21.77% per year against +21.09% for SPY; over five years the annualized figures are +4.75% and +12.69% respectively. Across the full 15-year window we track, SPY has the edge at +13.16% annualized vs +6.26%.

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 14.0% 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 -34.1% 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 0.75. 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 already in SPY1.6%
SPY already in FGM0.5%

1.6% of FGM's money is in holdings SPY also owns. 0.5% of SPY's money is in holdings FGM also owns.

FGM and SPY share little of their money.

1 positions in common, counted across the 40 positions we hold weights for in FGM and 503 in SPY, against full books of 84 and 505.

What only one of them owns

Our book lists 492 positions for SPY that do not appear in our book for FGM (98.9% of the fund), and 1 for FGM that do not appear in SPY (2.5%).

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.

Top Shared Holdings

StockWeight in FGMWeight in SPYDifference
MRKMerck & Co. Inc.1.64%0.47%1.17%

You are not choosing between two funds in isolation.

Whichever of FGM and SPY you pick has to sit alongside everything else you own. Add the rest and see what the combination actually holds.

FGMSPY

Free for up to 10 holdings. No account needed.

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, by $71 a year on a $10,000 investment.

Which performed better, FGM or SPY?

Over the past year FGM returned +14.01% vs +19.36% for SPY, so SPY leads on 1-year performance. Over the longest common window we track (15 years), FGM annualized +6.26% vs +13.16% for SPY. Past performance does not guarantee future results. This is information, not a recommendation.

Which is riskier, FGM or SPY?

FGM has been the more volatile fund at 19.8% annualized versus 14.0% for SPY. Worst drawdown: FGM -53.6% vs SPY -34.1%.

Should I hold both FGM and SPY?

FGM and SPY have a monthly-return correlation of 0.75, so their returns are far enough apart for the mix to behave differently from either one alone. This is information, not a recommendation.

What is the holdings overlap between FGM and SPY?

1.6% of FGM's money is in holdings SPY also owns. 0.5% of SPY's is in holdings FGM also owns. They hold 1 positions in common, counted across the 40 positions we hold weights for in FGM and 503 in SPY.

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.

Is SPY better than FGM?

SPY has a lower expense ratio. FGM led over 3Y, SPY over 1Y, 5Y and the full window. SPY is less concentrated, with 38.0% of the fund in its ten largest positions against 40.1%. Which one suits a particular account depends on what it is for. This is information, not a recommendation.