FLAX vs SPY
Franklin FTSE Asia ex Japan ETF vs State Street SPDR S&P 500 ETF Trust
Quick Verdict
SPY has a lower expense ratio. FLAX delivered stronger 1-year returns. FLAX offers more diversification with 1,620 holdings.
Side-by-Side Comparison
| Metric | FLAX | SPY | Winner |
|---|---|---|---|
| Expense Ratio | 0.19% | 0.09% | |
| AUM | $58M | $821.1B | |
| Dividend Yield | 2.08% | 1.01% | |
| Holdings | 1,620 | 505 | |
| YTD Return | +19.29% | +13.17% | |
| 1Y Return | +36.22% | +21.53% | |
| 3Y Return (annualized) | +23.80% | +22.06% | |
| 5Y Return (annualized) | +9.27% | +13.35% | |
| Volatility (annualized) | 18.0% | 15.3% | |
| Max Drawdown | -42.5% | -56.5% | |
| Fund Family | Franklin Templeton Investments (US) | State Street Investment Management | |
| Category | Equity | Equity | |
| Inception | Feb 6, 2018 | Jan 22, 1993 |
FLAX vs SPY Performance
Franklin FTSE Asia ex Japan ETF (FLAX) 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 FLAX returned +36.22% while SPY returned +21.53%. Year to date, FLAX is up 19.29% versus a gain of 13.17% for SPY.
Over three years, FLAX compounded at +23.80% per year against +22.06% for SPY; over five years the annualized figures are +9.27% and +13.35% respectively. Across the full 9-year window we track, SPY has the edge at +8.82% annualized vs +7.12%. Past performance does not guarantee future results.
Risk: Volatility and Drawdowns
FLAX has been the more volatile fund, with annualized monthly volatility of 18.0% 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 -42.5% for FLAX 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 0.65. They move independently enough that combining them can meaningfully diversify a portfolio.
Fees and Cost Over Time
FLAX charges 0.19% per year while SPY charges 0.09%. On a $10,000 position that is $19 vs $9 annually, a gap of $10 per year that compounds over a long holding period. On income, FLAX currently yields 2.08% against 1.01% for SPY.
Holdings Overlap
FLAX and SPY share 1 holdings out of 1647 unique holdings combined, representing a 0.0% weight overlap.
Moderate overlap means holding both could provide meaningful diversification benefits.
Top Shared Holdings
| Stock | Weight in FLAX | Weight in SPY | Difference |
|---|---|---|---|
| HAL | 0.07% | 0.04% | 0.03% |
Frequently Asked Questions
Which is cheaper, FLAX or SPY?
FLAX has an expense ratio of 0.19% while SPY charges 0.09%. SPY is the cheaper option. On a $10,000 investment, that is $10 per year of difference.
Which performed better, FLAX or SPY?
Over the past year FLAX returned +36.22% vs +21.53% for SPY, so FLAX leads on 1-year performance. Over the longest common window we track (9 years), FLAX annualized +7.12% vs +8.82% for SPY. Past performance does not guarantee future results.
Which is riskier, FLAX or SPY?
FLAX has been the more volatile fund at 18.0% annualized versus 15.3% for SPY. Worst drawdown: FLAX -42.5% vs SPY -56.5%.
Should I hold both FLAX and SPY?
FLAX and SPY have a monthly-return correlation of 0.65, so combining them can provide real diversification depending on your allocation goals.
What is the holdings overlap between FLAX and SPY?
FLAX and SPY share 1 common holdings with a 0.0% weight overlap. Combined, they hold 1647 unique securities.
Which pays a higher dividend, FLAX or SPY?
FLAX yields 2.08% while SPY yields 1.01%, so FLAX currently pays the higher dividend yield.
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