FQAL vs SPY
Fidelity Quality Factor 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 505 holdings.
Side-by-Side Comparison
| Metric | FQAL | SPY | Winner |
|---|---|---|---|
| Expense Ratio | 0.15% | 0.09% | |
| AUM | $1.4B | $821.1B | |
| Dividend Yield | 1.15% | 1.01% | |
| Holdings | 130 | 505 | |
| YTD Return | +13.30% | +14.24% | |
| 1Y Return | +18.55% | +21.71% | |
| 3Y Return (annualized) | +20.35% | +22.10% | |
| 5Y Return (annualized) | +11.78% | +13.21% | |
| Volatility (annualized) | 15.0% | 15.3% | |
| Max Drawdown | -34.1% | -56.5% | |
| Fund Family | Fidelity Investments (US) | State Street Investment Management | |
| Category | Equity | Equity | |
| Inception | Sep 12, 2016 | Jan 22, 1993 |
FQAL vs SPY Performance
Fidelity Quality Factor ETF (FQAL) is a ETF from Fidelity Investments (US) and State Street SPDR S&P 500 ETF Trust (SPY) is a ETF from State Street Investment Management. Over the past year FQAL returned +18.55% while SPY returned +21.71%. Year to date, FQAL is up 13.30% versus a gain of 14.24% for SPY.
Over three years, FQAL compounded at +20.35% per year against +22.10% for SPY; over five years the annualized figures are +11.78% and +13.21% respectively. Across the full 10-year window we track, FQAL has the edge at +13.87% annualized vs +8.86%. 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 15.0% 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 -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 0.99. 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
FQAL and SPY share 108 holdings out of 521 unique holdings combined, representing a 51.9% weight overlap.
High overlap means holding both may not provide much additional diversification.
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. On a $10,000 investment, that is $6 per year of difference.
Which performed better, FQAL or SPY?
Over the past year FQAL returned +18.55% vs +21.71% for SPY, so SPY leads on 1-year performance. Over the longest common window we track (10 years), FQAL annualized +13.87% vs +8.86% for SPY. Past performance does not guarantee future results.
Which is riskier, FQAL or SPY?
SPY has been the more volatile fund at 15.3% annualized versus 15.0% for FQAL. Worst drawdown: FQAL -34.1% vs SPY -56.5%.
Should I hold both FQAL and SPY?
FQAL and SPY have a monthly-return correlation of 0.99, 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 FQAL and SPY?
FQAL and SPY share 108 common holdings with a 51.9% weight overlap. Combined, they hold 521 unique securities.
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.
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