FRDM vs SPY
Freedom 100 Emerging Markets ETF vs State Street SPDR S&P 500 ETF Trust
Quick Verdict
SPY has a lower expense ratio. FRDM delivered stronger 1-year returns. SPY offers more diversification with 503 holdings.
Side-by-Side Comparison
| Metric | FRDM | SPY | Winner |
|---|---|---|---|
| Expense Ratio | 0.49% | 0.09% | |
| AUM | $3.3B | $789.1B | |
| Dividend Yield | 1.53% | 1.01% | |
| Holdings | 134 | 505 | |
| YTD Return | +25.77% | +13.75% | |
| 1Y Return | +59.76% | +22.91% | |
| 3Y Return (annualized) | +31.27% | +21.67% | |
| 5Y Return (annualized) | +16.65% | +13.32% | |
| Volatility (annualized) | 23.2% | 15.3% | |
| Max Drawdown | -40.5% | -56.5% | |
| Fund Family | Freedom ETFs | State Street Investment Management | |
| Category | Equity | Equity | |
| Inception | May 23, 2019 | Jan 22, 1993 |
FRDM vs SPY Performance
Freedom 100 Emerging Markets ETF (FRDM) is a ETF from Freedom ETFs and State Street SPDR S&P 500 ETF Trust (SPY) is a ETF from State Street Investment Management. Over the past year FRDM returned +59.76% while SPY returned +22.91%. Year to date, FRDM is up 25.77% versus a gain of 13.75% for SPY.
Over three years, FRDM compounded at +31.27% per year against +21.67% for SPY; over five years the annualized figures are +16.65% and +13.32% respectively. Across the full 7-year window we track, FRDM has the edge at +16.45% annualized vs +8.85%. Past performance does not guarantee future results.
Risk: Volatility and Drawdowns
FRDM has been the more volatile fund, with annualized monthly volatility of 23.2% compared with 15.3% for SPY. 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 -40.5% for FRDM 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 0.76. They usually move together, but the gap leaves some room for diversification.
Fees and Cost Over Time
FRDM charges 0.49% per year while SPY charges 0.09%. On a $10,000 position that is $49 vs $9 annually, a gap of $40 per year that compounds over a long holding period. On income, FRDM currently yields 1.53% against 1.01% for SPY.
Holdings Overlap
FRDM and SPY share 0 holdings out of 630 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, FRDM or SPY?
FRDM has an expense ratio of 0.49% while SPY charges 0.09%. SPY is the cheaper option. On a $10,000 investment, that is $40 per year of difference.
Which performed better, FRDM or SPY?
Over the past year FRDM returned +59.76% vs +22.91% for SPY, so FRDM leads on 1-year performance. Over the longest common window we track (7 years), FRDM annualized +16.45% vs +8.85% for SPY. Past performance does not guarantee future results.
Which is riskier, FRDM or SPY?
FRDM has been the more volatile fund at 23.2% annualized versus 15.3% for SPY. Worst drawdown: FRDM -40.5% vs SPY -56.5%.
Should I hold both FRDM and SPY?
FRDM and SPY have a monthly-return correlation of 0.76, so combining them can provide real diversification depending on your allocation goals.
What is the holdings overlap between FRDM and SPY?
FRDM and SPY share 0 common holdings with a 0.0% weight overlap. Combined, they hold 630 unique securities.
Which pays a higher dividend, FRDM or SPY?
FRDM yields 1.53% while SPY yields 1.01%, so FRDM currently pays the higher dividend yield.
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