FOCT vs SPY
FT Vest US Equity Buffer ETF - October 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 | FOCT | SPY | Winner |
|---|---|---|---|
| Expense Ratio | 0.85% | 0.09% | |
| AUM | $1.2B | $789.1B | |
| Dividend Yield | 0.00% | 1.01% | |
| Holdings | 5 | 505 | |
| YTD Return | +9.15% | +13.75% | |
| 1Y Return | +17.02% | +22.91% | |
| 3Y Return (annualized) | +12.17% | +21.67% | |
| 5Y Return (annualized) | +9.31% | +13.32% | |
| Volatility (annualized) | 10.1% | 15.3% | |
| Max Drawdown | -14.1% | -56.5% | |
| Fund Family | First Trust Portfolios (US) | State Street Investment Management | |
| Category | Alternative | Equity | |
| Inception | Oct 16, 2020 | Jan 22, 1993 |
FOCT vs SPY Performance
FT Vest US Equity Buffer ETF - October (FOCT) is a ETF from First Trust Portfolios (US) and State Street SPDR S&P 500 ETF Trust (SPY) is a ETF from State Street Investment Management. Over the past year FOCT returned +17.02% while SPY returned +22.91%. Year to date, FOCT is up 9.15% versus a gain of 13.75% for SPY.
Over three years, FOCT compounded at +12.17% per year against +21.67% for SPY; over five years the annualized figures are +9.31% and +13.32% respectively. Across the full 6-year window we track, FOCT has the edge at +10.66% annualized vs +8.85%. 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 10.1% for FOCT. 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 -14.1% for FOCT 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 0.96. They move almost in lockstep, so holding both mostly duplicates the same exposure.
Fees and Cost Over Time
FOCT charges 0.85% per year while SPY charges 0.09%. On a $10,000 position that is $85 vs $9 annually, a gap of $76 per year that compounds over a long holding period. On income, FOCT currently yields 0.00% against 1.01% for SPY.
Holdings Overlap
FOCT and SPY share 0 holdings out of 504 unique holdings combined, representing a 0.0% weight overlap.
Moderate overlap means holding both could provide meaningful diversification benefits.
Frequently Asked Questions
Which is cheaper, FOCT or SPY?
FOCT has an expense ratio of 0.85% while SPY charges 0.09%. SPY is the cheaper option. On a $10,000 investment, that is $76 per year of difference.
Which performed better, FOCT or SPY?
Over the past year FOCT returned +17.02% vs +22.91% for SPY, so SPY leads on 1-year performance. Over the longest common window we track (6 years), FOCT annualized +10.66% vs +8.85% for SPY. Past performance does not guarantee future results.
Which is riskier, FOCT or SPY?
SPY has been the more volatile fund at 15.3% annualized versus 10.1% for FOCT. Worst drawdown: FOCT -14.1% vs SPY -56.5%.
Should I hold both FOCT and SPY?
FOCT and SPY have a monthly-return correlation of 0.96, so they move almost identically. Holding both adds little diversification - most investors pick one, usually on fees or the specific index tracked.
What is the holdings overlap between FOCT and SPY?
FOCT and SPY share 0 common holdings with a 0.0% weight overlap. Combined, they hold 504 unique securities.
Which pays a higher dividend, FOCT or SPY?
FOCT yields 0.00% while SPY yields 1.01%, so SPY currently pays the higher dividend yield.
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