FQAL vs SPY
Fidelity Quality Factor ETF vs State Street SPDR S&P 500 ETF Trust
Which is better, FQAL or SPY?
Nearly the same fund. SPY costs less.
SPY has a lower expense ratio. SPY led over 1Y, 3Y, 5Y and the full window. The two have moved almost in lockstep, correlation 0.99. SPY is less concentrated, with 38.0% of the fund in its ten largest positions against 39.6%.
MarketXLS is not an investment adviser. This comparison is generated automatically from market data and is for information only. A Best mark means the better reading on that one measure, not a recommendation to buy.
Side-by-Side Comparison
| Metric | FQAL | SPY |
|---|---|---|
| Expense Ratio | 0.15% | 0.09%Best |
| AUM | $1.4B | $814.4B |
| Dividend Yield | 1.15% | 1.01% |
| Holdings | 130 | 505 |
| YTD Return | +12.69% | +13.34%Best |
| 1Y Return | +17.50% | +19.97%Best |
| 3Y Return (annualized) | +19.49% | +21.20%Best |
| 5Y Return (annualized) | +11.59% | +12.81%Best |
| Volatility (annualized) | 14.9%Best | 15.4% |
| Max Drawdown | -34.1%Tie | -34.1%Tie |
| $10,000 over 5 years | $17,303 | $18,270Best |
| Top 10 Weight | 39.6% | 38.0%Best |
| Fund Family | Fidelity Investments (US) | State Street Investment Management |
| Category | Equity | Equity |
| Style | Large Cap Blend | Large Cap Blend |
| Inception | Sep 12, 2016 | Jan 22, 1993 |
Volatility and max drawdown are measured over the window both funds cover: Sep 15, 2016 to Sep 4, 2026 (10 years).
FQAL vs SPY growth
Month-end closes. Both lines start at 0% in the first month shown, so the gap between them is the difference in growth across that window. The full view covers the 10 years both funds cover.
FQAL vs SPY Performance
Fidelity Quality Factor ETF (FQAL) is an ETF from Fidelity Investments (US) and State Street SPDR S&P 500 ETF Trust (SPY) is an ETF from State Street Investment Management. Over the past year FQAL returned +17.50% while SPY returned +19.97%. Year to date, FQAL is up 12.69% versus a gain of 13.34% for SPY.
Over three years, FQAL compounded at +19.49% per year against +21.20% for SPY; over five years the annualized figures are +11.59% and +12.81% respectively. Across the full 10-year window we track, SPY has the edge at +14.49% annualized vs +13.72%.
Past performance does not guarantee future results.
Risk: Volatility and Drawdowns
SPY has been the more volatile fund, with annualized monthly volatility of 15.4% compared with 14.9% for FQAL. 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 -34.1% for FQAL and -34.1% for SPY. Drawdown depth is what each fund did in the worst stretch of the window measured above.
The two funds' monthly returns correlate at 0.99. They move almost in lockstep, so holding both mostly duplicates the same exposure.
Fees and Cost Over Time
FQAL charges 0.15% per year while SPY charges 0.09%. On a $10,000 position that is $15 vs $9 annually, a gap of $6 per year that compounds over a long holding period. On income, FQAL currently yields 1.15% against 1.01% for SPY.
Holdings Overlap
90.8% of FQAL's money is in holdings SPY also owns. 53.0% of SPY's money is in holdings FQAL also owns.
Most of FQAL is already inside SPY. Owning both mostly buys the same companies twice.
109 positions in common, counted across the 126 positions we hold weights for in FQAL and 504 in SPY, against full books of 130 and 505.
What only one of them owns
Our book lists 388 positions for SPY that do not appear in our book for FQAL (46.6% of the fund), and 15 for FQAL that do not appear in SPY (9.2%).
Some of those will be the same company recorded under a different code in one of the two books, so the real difference in what you would own is no larger than this and may be smaller. We do not name the individual positions here for that reason.
Top Shared Holdings
| Stock | Weight in FQAL | Weight in SPY | Difference |
|---|---|---|---|
| NVDANvidia Corp. | 7.72% | 7.71% | 0.01% |
| AAPLApple, Inc | 6.74% | 6.83% | 0.09% |
| MSFTMicrosoft Corp 4.100 Feb 06 37 | 5.49% | 5.50% | 0.01% |
| GOOGLAlphabet Inc.Class A | 5.05% | 3.33% | 1.72% |
| AVGOBroadcom Inc | 3.39% | 2.97% | 0.42% |
| METAMeta Platform Inc | 1.88% | 1.94% | 0.06% |
| JPMJpmorgan Chase | 1.86% | 1.44% | 0.42% |
| LLYEli Lilly & Co. | 1.71% | 1.33% | 0.38% |
| VVisa Inc Class A | 1.39% | 0.92% | 0.47% |
| JNJJohnson & Johnson - Common | 1.29% | 0.92% | 0.37% |
90.8% of FQAL is already inside SPY.
You probably hold more than these two. Add the rest and see how much of the whole book is the same companies twice.
Free for up to 10 holdings. No account needed.
Frequently Asked Questions
Which is cheaper, FQAL or SPY?
FQAL has an expense ratio of 0.15% while SPY charges 0.09%. SPY is the cheaper option, by $6 a year on a $10,000 investment.
Which performed better, FQAL or SPY?
Over the past year FQAL returned +17.50% vs +19.97% for SPY, so SPY leads on 1-year performance. Over the longest common window we track (10 years), FQAL annualized +13.72% vs +14.49% for SPY. Past performance does not guarantee future results. This is information, not a recommendation.
Which is riskier, FQAL or SPY?
SPY has been the more volatile fund at 15.4% annualized versus 14.9% for FQAL. Worst drawdown: FQAL -34.1% vs SPY -34.1%.
Should I hold both FQAL and SPY?
FQAL and SPY have a monthly-return correlation of 0.99, so they move almost identically. What is left to separate them is the fee and the index each one tracks. This is information, not a recommendation.
What is the holdings overlap between FQAL and SPY?
90.8% of FQAL's money is in holdings SPY also owns. 53.0% of SPY's is in holdings FQAL also owns. They hold 109 positions in common, counted across the 126 positions we hold weights for in FQAL and 504 in SPY.
Which pays a higher dividend, FQAL or SPY?
FQAL yields 1.15% while SPY yields 1.01%, so FQAL currently pays the higher dividend yield.
Is SPY better than FQAL?
SPY has a lower expense ratio. SPY led over 1Y, 3Y, 5Y and the full window. The two have moved almost in lockstep, correlation 0.99. SPY is less concentrated, with 38.0% of the fund in its ten largest positions against 39.6%. Which one suits a particular account depends on what it is for. This is information, not a recommendation.