FLEE vs SPY

FLEE vs SPY
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Quick Verdict

FLEE has a lower expense ratio. SPY delivered stronger 1-year returns.

Lower Fees: FLEEHigher Returns: SPYMore Diversified: Tied

Side-by-Side Comparison

MetricFLEESPYWinner
Expense Ratio0.09%0.09%
AUM$121M$821.1B
Dividend Yield3.10%1.01%
Holdings505505
YTD Return+10.40%+13.17%
1Y Return+20.41%+21.53%
3Y Return (annualized)+18.88%+22.06%
5Y Return (annualized)+10.05%+13.35%
Volatility (annualized)17.1%15.3%
Max Drawdown-41.1%-56.5%
Fund FamilyFranklin Templeton Investments (US)State Street Investment Management
CategoryEquityEquity
InceptionNov 2, 2017Jan 22, 1993

FLEE vs SPY Performance

Franklin FTSE Europe ETF (FLEE) 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 FLEE returned +20.41% while SPY returned +21.53%. Year to date, FLEE is up 10.40% versus a gain of 13.17% for SPY.

Over three years, FLEE compounded at +18.88% per year against +22.06% for SPY; over five years the annualized figures are +10.05% and +13.35% respectively. Across the full 9-year window we track, SPY has the edge at +8.82% annualized vs +7.72%. Past performance does not guarantee future results.

Risk: Volatility and Drawdowns

FLEE has been the more volatile fund, with annualized monthly volatility of 17.1% 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 -41.1% for FLEE 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 0.81. They usually move together, but the gap leaves some room for diversification.

Fees and Cost Over Time

FLEE charges 0.09% per year while SPY charges 0.09%. On a $10,000 position that is $9 vs $9 annually, a gap of $0 per year that compounds over a long holding period. On income, FLEE currently yields 3.10% against 1.01% for SPY.

Holdings Overlap

0.1%overlap

FLEE and SPY share 2 holdings out of 992 unique holdings combined, representing a 0.1% weight overlap.

Moderate overlap means holding both could provide meaningful diversification benefits.

Top Shared Holdings

StockWeight in FLEEWeight in SPYDifference
IRM0.15%0.06%0.09%
BG0.10%0.02%0.08%

Frequently Asked Questions

Which is cheaper, FLEE or SPY?

FLEE has an expense ratio of 0.09% while SPY charges 0.09%. FLEE is the cheaper option. On a $10,000 investment, that is $0 per year of difference.

Which performed better, FLEE or SPY?

Over the past year FLEE returned +20.41% vs +21.53% for SPY, so SPY leads on 1-year performance. Over the longest common window we track (9 years), FLEE annualized +7.72% vs +8.82% for SPY. Past performance does not guarantee future results.

Which is riskier, FLEE or SPY?

FLEE has been the more volatile fund at 17.1% annualized versus 15.3% for SPY. Worst drawdown: FLEE -41.1% vs SPY -56.5%.

Should I hold both FLEE and SPY?

FLEE and SPY have a monthly-return correlation of 0.81, so combining them can provide real diversification depending on your allocation goals.

What is the holdings overlap between FLEE and SPY?

FLEE and SPY share 2 common holdings with a 0.1% weight overlap. Combined, they hold 992 unique securities.

Which pays a higher dividend, FLEE or SPY?

FLEE yields 3.10% while SPY yields 1.01%, so FLEE currently pays the higher dividend yield.

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