FLEU vs SPY

FLEU vs SPY
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Quick Verdict

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

Lower Fees: FLEUHigher Returns: SPYMore Diversified: SPY

Side-by-Side Comparison

MetricFLEUSPYWinner
Expense Ratio0.09%0.09%
AUM$74M$821.1B
Dividend Yield2.68%1.01%
Holdings265505
YTD Return+11.34%+13.17%
1Y Return+20.09%+21.53%
3Y Return (annualized)+20.58%+22.06%
5Y Return (annualized)+12.71%+13.35%
Volatility (annualized)15.7%15.3%
Max Drawdown-35.6%-56.5%
Fund FamilyFranklin Templeton Investments (US)State Street Investment Management
CategoryEquityEquity
InceptionNov 2, 2017Jan 22, 1993

FLEU vs SPY Performance

Franklin FTSE Eurozone ETF (FLEU) 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 FLEU returned +20.09% while SPY returned +21.53%. Year to date, FLEU is up 11.34% versus a gain of 13.17% for SPY.

Over three years, FLEU compounded at +20.58% per year against +22.06% for SPY; over five years the annualized figures are +12.71% and +13.35% respectively. Across the full 9-year window we track, SPY has the edge at +8.82% annualized vs +8.55%. Past performance does not guarantee future results.

Risk: Volatility and Drawdowns

FLEU has been the more volatile fund, with annualized monthly volatility of 15.7% 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 -35.6% for FLEU 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 0.79. They usually move together, but the gap leaves some room for diversification.

Fees and Cost Over Time

FLEU 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, FLEU currently yields 2.68% against 1.01% for SPY.

Holdings Overlap

0.1%overlap

FLEU and SPY share 2 holdings out of 757 unique holdings combined, representing a 0.1% weight overlap.

Moderate overlap means holding both could provide meaningful diversification benefits.

Top Shared Holdings

StockWeight in FLEUWeight in SPYDifference
IRM0.28%0.06%0.22%
BG0.20%0.02%0.18%

Frequently Asked Questions

Which is cheaper, FLEU or SPY?

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

Which performed better, FLEU or SPY?

Over the past year FLEU returned +20.09% vs +21.53% for SPY, so SPY leads on 1-year performance. Over the longest common window we track (9 years), FLEU annualized +8.55% vs +8.82% for SPY. Past performance does not guarantee future results.

Which is riskier, FLEU or SPY?

FLEU has been the more volatile fund at 15.7% annualized versus 15.3% for SPY. Worst drawdown: FLEU -35.6% vs SPY -56.5%.

Should I hold both FLEU and SPY?

FLEU and SPY have a monthly-return correlation of 0.79, so combining them can provide real diversification depending on your allocation goals.

What is the holdings overlap between FLEU and SPY?

FLEU and SPY share 2 common holdings with a 0.1% weight overlap. Combined, they hold 757 unique securities.

Which pays a higher dividend, FLEU or SPY?

FLEU yields 2.68% while SPY yields 1.01%, so FLEU currently pays the higher dividend yield.

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