FSSL vs SPY
FS Specialty Lending Fund vs State Street SPDR S&P 500 ETF Trust
Which is better, FSSL or SPY?
High Yield Bond against Large Cap Blend.
SPY has a lower expense ratio. SPY led over 1Y.
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 | FSSL | SPY |
|---|---|---|
| Expense Ratio | 6.98% | 0.09%Best |
| AUM | $1.3B | $777.9B |
| Dividend Yield | 10.40% | 1.00% |
| Holdings | 161 | 1,011 |
| YTD Return | -6.82% | +8.47%Best |
| 1Y Return | -1.47% | +10.88%Best |
| 3Y Return (annualized) | - | +20.41% |
| 5Y Return (annualized) | - | +10.90% |
| Volatility (annualized) | 16.6% | 13.8%Best |
| Fund Family | FS Specialty Lending Fund | State Street Investment Management |
| Category | Fixed Income | Equity |
| Style | High Yield Bond | Large Cap Blend |
| Inception | Jul 18, 2011 | Jan 22, 1993 |
Not shown on this pair: Max Drawdown, $10,000 over the window, Top 10 Weight.
FSSL 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 is available from the range buttons; it is not the opening view here because over the whole period one of these two funds moves so much further than the other that its line would sit flat on the axis.
FSSL vs SPY Performance
FS Specialty Lending Fund (FSSL) is an ETF from FS Specialty Lending Fund and State Street SPDR S&P 500 ETF Trust (SPY) is an ETF from State Street Investment Management. Over the past year FSSL returned -1.47% while SPY returned +10.88%. Year to date, FSSL is down 6.82% versus a gain of 8.47% for SPY.
Past performance does not guarantee future results.
Risk: Volatility and Drawdowns
FSSL has been the more volatile fund, with annualized monthly volatility of 16.6% compared with 13.8% for SPY. Lower volatility generally means a smoother ride, though it often comes with lower long-run returns.
The two funds' monthly returns correlate at -0.14. They move largely independently of each other.
Fees and Cost Over Time
FSSL charges 6.98% per year while SPY charges 0.09%. On a $10,000 position that is $698 vs $9 annually, a gap of $689 per year that compounds over a long holding period. On income, FSSL currently yields 10.40% against 1.00% for SPY.
Holdings Overlap
We hold position weights for 8 holdings in FSSL and 504 in SPY, totalling 9.7% and 100.1% of the two funds. The two books name no position in common, so there is no overlap percentage to show.
The two holdings books were reported 108 days apart, FSSL as of Jun 30, 2026 and SPY as of Oct 16, 2026, so some of the difference between them is the time between the two reports rather than the funds.
0 positions in common, counted across the 8 positions we hold weights for in FSSL and 504 in SPY, against full books of 161 and 1,011.
You are not choosing between two funds in isolation.
Whichever of FSSL and SPY you pick has to sit alongside everything else you own. Add the rest and see what the combination actually holds.
Free for up to 10 holdings. No account needed.
Frequently Asked Questions
Which is cheaper, FSSL or SPY?
FSSL has an expense ratio of 6.98% while SPY charges 0.09%. SPY is the cheaper option, by $689 a year on a $10,000 investment.
Which performed better, FSSL or SPY?
Over the past year FSSL returned -1.47% vs +10.88% for SPY, so SPY leads on 1-year performance. Past performance does not guarantee future results. This is information, not a recommendation.
Which is riskier, FSSL or SPY?
FSSL has been the more volatile fund at 16.6% annualized versus 13.8% for SPY.
Should I hold both FSSL and SPY?
FSSL and SPY have a monthly-return correlation of -0.14, so their returns are far enough apart for the mix to behave differently from either one alone. This is information, not a recommendation.
Which pays a higher dividend, FSSL or SPY?
FSSL yields 10.40% while SPY yields 1.00%, so FSSL currently pays the higher dividend yield.
Is SPY better than FSSL?
SPY has a lower expense ratio. SPY led over 1Y. Which one suits a particular account depends on what it is for. This is information, not a recommendation.