FMCE vs SPY

Quick Verdict

SPY has a lower expense ratio. SPY delivered stronger 1-year returns. SPY offers more diversification with 503 holdings.

Lower Fees: SPYHigher Returns: SPYMore Diversified: SPY

Side-by-Side Comparison

MetricFMCESPYWinner
Expense Ratio0.72%0.09%
AUM$67M$789.1B
Dividend Yield2.82%1.01%
Holdings30505
YTD Return+11.09%+13.39%
1Y Return+16.00%+22.52%
3Y Return (annualized)-+21.36%
5Y Return (annualized)-+13.19%
Volatility (annualized)11.7%15.3%
Max Drawdown-11.7%-56.5%
Fund FamilyFirst ManhattanState Street Investment Management
CategoryEquityEquity
InceptionNov 8, 2024Jan 22, 1993

FMCE vs SPY Performance

FM Compounders Equity ETF (FMCE) is a ETF from First Manhattan and State Street SPDR S&P 500 ETF Trust (SPY) is a ETF from State Street Investment Management. Over the past year FMCE returned +16.00% while SPY returned +22.52%. Year to date, FMCE is up 11.09% versus a gain of 13.39% for SPY.

Risk: Volatility and Drawdowns

SPY has been the more volatile fund, with annualized monthly volatility of 15.3% compared with 11.7% for FMCE. 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 -11.7% for FMCE 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 0.84. They usually move together, but the gap leaves some room for diversification.

Fees and Cost Over Time

FMCE charges 0.72% per year while SPY charges 0.09%. On a $10,000 position that is $72 vs $9 annually, a gap of $63 per year that compounds over a long holding period. On income, FMCE currently yields 2.82% against 1.01% for SPY.

Holdings Overlap

20.8%overlap

FMCE and SPY share 27 holdings out of 507 unique holdings combined, representing a 20.8% weight overlap.

Moderate overlap means holding both could provide meaningful diversification benefits.

Top Shared Holdings

StockWeight in FMCEWeight in SPYDifference
MSFT5.42%4.43%0.99%
NVDA1.11%7.31%6.20%
AMZN4.55%3.69%0.86%
INTCProProPro
BRK.BProProPro
KKRProProPro
VProProPro
GEProProPro
HONProProPro
METAProProPro
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Frequently Asked Questions

Which is cheaper, FMCE or SPY?

FMCE has an expense ratio of 0.72% while SPY charges 0.09%. SPY is the cheaper option. On a $10,000 investment, that is $63 per year of difference.

Which performed better, FMCE or SPY?

Over the past year FMCE returned +16.00% vs +22.52% for SPY, so SPY leads on 1-year performance. Over the longest common window we track (2 years), FMCE annualized +11.10% vs +8.84% for SPY. Past performance does not guarantee future results.

Which is riskier, FMCE or SPY?

SPY has been the more volatile fund at 15.3% annualized versus 11.7% for FMCE. Worst drawdown: FMCE -11.7% vs SPY -56.5%.

Should I hold both FMCE and SPY?

FMCE and SPY have a monthly-return correlation of 0.84, so combining them can provide real diversification depending on your allocation goals.

What is the holdings overlap between FMCE and SPY?

FMCE and SPY share 27 common holdings with a 20.8% weight overlap. Combined, they hold 507 unique securities.

Which pays a higher dividend, FMCE or SPY?

FMCE yields 2.82% while SPY yields 1.01%, so FMCE currently pays the higher dividend yield.

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