FRI vs SPY
First Trust S&P REIT Index Fund vs State Street SPDR S&P 500 ETF Trust
Which is better, FRI or SPY?
Mid Cap Blend against Large Cap Blend.
SPY has a lower expense ratio. SPY led over 1Y, 3Y, 5Y and the full window. SPY is less concentrated, with 38.0% of the fund in its ten largest positions against 51.7%.
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 | FRI | SPY |
|---|---|---|
| Expense Ratio | 0.50% | 0.09%Best |
| AUM | $198M | $814.4B |
| Dividend Yield | 2.40% | 1.01% |
| Holdings | 254 | 505 |
| YTD Return | +15.19%Best | +13.34% |
| 1Y Return | +15.26% | +19.97%Best |
| 3Y Return (annualized) | +11.92% | +21.20%Best |
| 5Y Return (annualized) | +3.60% | +12.81%Best |
| Volatility (annualized) | 22.4% | 15.5%Best |
| Max Drawdown | -73.3% | -56.5%Best |
| $10,000 over 5 years | $11,934 | $18,270Best |
| Top 10 Weight | 51.7% | 38.0%Best |
| Fund Family | First Trust Portfolios (US) | State Street Investment Management |
| Category | Equity | Equity |
| Style | Mid Cap Blend | Large Cap Blend |
| Inception | May 8, 2007 | Jan 22, 1993 |
Volatility and max drawdown are measured over the window both funds cover: May 10, 2007 to Sep 4, 2026 (19.3 years).
FRI 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 19.3 years both funds cover.
FRI vs SPY Performance
First Trust S&P REIT Index Fund (FRI) is an ETF from First Trust Portfolios (US) and State Street SPDR S&P 500 ETF Trust (SPY) is an ETF from State Street Investment Management. Over the past year FRI returned +15.26% while SPY returned +19.97%. Year to date, FRI is up 15.19% versus a gain of 13.34% for SPY.
Over three years, FRI compounded at +11.92% per year against +21.20% for SPY; over five years the annualized figures are +3.60% and +12.81% respectively. Across the full 19-year window we track, SPY has the edge at +9.27% annualized vs +3.09%.
Past performance does not guarantee future results.
Risk: Volatility and Drawdowns
FRI has been the more volatile fund, with annualized monthly volatility of 22.4% compared with 15.5% 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 -73.3% for FRI and -56.5% 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 0.75. They usually move together, but the gap leaves some room for diversification.
Fees and Cost Over Time
FRI charges 0.50% per year while SPY charges 0.09%. On a $10,000 position that is $50 vs $9 annually, a gap of $41 per year that compounds over a long holding period. On income, FRI currently yields 2.40% against 1.01% for SPY.
Holdings Overlap
69.0% of FRI's money is in holdings SPY also owns. 1.5% of SPY's money is in holdings FRI also owns.
The two portfolios partly overlap.
25 positions in common, counted across the 126 positions we hold weights for in FRI and 504 in SPY, against full books of 254 and 505.
What only one of them owns
Our book lists 471 positions for SPY that do not appear in our book for FRI (97.9% of the fund), and 100 for FRI that do not appear in SPY (27.1%).
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 FRI | Weight in SPY | Difference |
|---|---|---|---|
| WELLWelltower, Inc. | 12.06% | 0.25% | 11.81% |
| PLDPrologis Inc | 9.45% | 0.19% | 9.26% |
| EQIXEquinix Inc. Real Estate Investment Trust | 4.69% | 0.16% | 4.53% |
| DLRDigital Realty Trust Inc. | 4.58% | 0.10% | 4.48% |
| SPGSimon Property Group Inc | 4.52% | 0.11% | 4.41% |
| ORealty Income Corp. | 4.21% | 0.09% | 4.12% |
| PSAPublic Storage | 3.95% | 0.08% | 3.87% |
| VTRVentas Inc . | 3.24% | 0.07% | 3.17% |
| IRMIron Mtn Inc New Com Npv | 2.72% | 0.06% | 2.66% |
| EXRExtra Space Storage Inc. | 2.28% | 0.05% | 2.23% |
69.0% of FRI 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, FRI or SPY?
FRI has an expense ratio of 0.50% while SPY charges 0.09%. SPY is the cheaper option, by $41 a year on a $10,000 investment.
Which performed better, FRI or SPY?
Over the past year FRI returned +15.26% vs +19.97% for SPY, so SPY leads on 1-year performance. Over the longest common window we track (19 years), FRI annualized +3.09% vs +9.27% for SPY. Past performance does not guarantee future results. This is information, not a recommendation.
Which is riskier, FRI or SPY?
FRI has been the more volatile fund at 22.4% annualized versus 15.5% for SPY. Worst drawdown: FRI -73.3% vs SPY -56.5%.
Should I hold both FRI and SPY?
FRI and SPY have a monthly-return correlation of 0.75, so their returns are far enough apart for the mix to behave differently from either one alone. This is information, not a recommendation.
What is the holdings overlap between FRI and SPY?
69.0% of FRI's money is in holdings SPY also owns. 1.5% of SPY's is in holdings FRI also owns. They hold 25 positions in common, counted across the 126 positions we hold weights for in FRI and 504 in SPY.
Which pays a higher dividend, FRI or SPY?
FRI yields 2.40% while SPY yields 1.01%, so FRI currently pays the higher dividend yield.
Is SPY better than FRI?
SPY has a lower expense ratio. SPY led over 1Y, 3Y, 5Y and the full window. SPY is less concentrated, with 38.0% of the fund in its ten largest positions against 51.7%. Which one suits a particular account depends on what it is for. This is information, not a recommendation.