FLSP vs SPY
Franklin Systematic Style Premia ETF 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 503 holdings.
Side-by-Side Comparison
| Metric | FLSP | SPY | Winner |
|---|---|---|---|
| Expense Ratio | 0.65% | 0.09% | |
| AUM | $1.0B | $789.1B | |
| Dividend Yield | 2.61% | 1.01% | |
| Holdings | 598 | 505 | |
| YTD Return | +5.44% | +13.75% | |
| 1Y Return | +15.48% | +22.91% | |
| 3Y Return (annualized) | +10.40% | +21.67% | |
| 5Y Return (annualized) | +8.25% | +13.32% | |
| Volatility (annualized) | 8.1% | 15.3% | |
| Max Drawdown | -22.8% | -56.5% | |
| Fund Family | Franklin Templeton Investments (US) | State Street Investment Management | |
| Category | Alternative | Equity | |
| Inception | Dec 18, 2019 | Jan 22, 1993 |
FLSP vs SPY Performance
Franklin Systematic Style Premia ETF (FLSP) 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 FLSP returned +15.48% while SPY returned +22.91%. Year to date, FLSP is up 5.44% versus a gain of 13.75% for SPY.
Over three years, FLSP compounded at +10.40% per year against +21.67% for SPY; over five years the annualized figures are +8.25% and +13.32% respectively. Across the full 7-year window we track, SPY has the edge at +8.85% annualized vs +4.54%. Past performance does not guarantee future results.
Risk: Volatility and Drawdowns
SPY has been the more volatile fund, with annualized monthly volatility of 15.3% compared with 8.1% for FLSP. 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 -22.8% for FLSP 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 0.09. They move independently enough that combining them can meaningfully diversify a portfolio.
Fees and Cost Over Time
FLSP charges 0.65% per year while SPY charges 0.09%. On a $10,000 position that is $65 vs $9 annually, a gap of $56 per year that compounds over a long holding period. On income, FLSP currently yields 2.61% against 1.01% for SPY.
Holdings Overlap
FLSP and SPY share 247 holdings out of 738 unique holdings combined, representing a 18.8% weight overlap.
Moderate overlap means holding both could provide meaningful diversification benefits.
Frequently Asked Questions
Which is cheaper, FLSP or SPY?
FLSP has an expense ratio of 0.65% while SPY charges 0.09%. SPY is the cheaper option. On a $10,000 investment, that is $56 per year of difference.
Which performed better, FLSP or SPY?
Over the past year FLSP returned +15.48% vs +22.91% for SPY, so SPY leads on 1-year performance. Over the longest common window we track (7 years), FLSP annualized +4.54% vs +8.85% for SPY. Past performance does not guarantee future results.
Which is riskier, FLSP or SPY?
SPY has been the more volatile fund at 15.3% annualized versus 8.1% for FLSP. Worst drawdown: FLSP -22.8% vs SPY -56.5%.
Should I hold both FLSP and SPY?
FLSP and SPY have a monthly-return correlation of 0.09, so combining them can provide real diversification depending on your allocation goals.
What is the holdings overlap between FLSP and SPY?
FLSP and SPY share 247 common holdings with a 18.8% weight overlap. Combined, they hold 738 unique securities.
Which pays a higher dividend, FLSP or SPY?
FLSP yields 2.61% while SPY yields 1.01%, so FLSP currently pays the higher dividend yield.
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