FTXO vs SPY
First Trust Nasdaq Bank ETF vs State Street SPDR S&P 500 ETF Trust
Quick Verdict
SPY has a lower expense ratio. FTXO delivered stronger 1-year returns. SPY offers more diversification with 505 holdings.
Side-by-Side Comparison
| Metric | FTXO | SPY | Winner |
|---|---|---|---|
| Expense Ratio | 0.60% | 0.09% | |
| AUM | $321M | $821.1B | |
| Dividend Yield | 1.72% | 1.01% | |
| Holdings | 51 | 505 | |
| YTD Return | +9.72% | +12.22% | |
| 1Y Return | +24.25% | +20.83% | |
| 3Y Return (annualized) | +27.38% | +21.70% | |
| 5Y Return (annualized) | +8.89% | +12.98% | |
| Volatility (annualized) | 27.1% | 15.3% | |
| Max Drawdown | -57.8% | -56.5% | |
| Fund Family | First Trust Portfolios (US) | State Street Investment Management | |
| Category | Equity | Equity | |
| Inception | Sep 20, 2016 | Jan 22, 1993 |
FTXO vs SPY Performance
First Trust Nasdaq Bank ETF (FTXO) is a ETF from First Trust Portfolios (US) and State Street SPDR S&P 500 ETF Trust (SPY) is a ETF from State Street Investment Management. Over the past year FTXO returned +24.25% while SPY returned +20.83%. Year to date, FTXO is up 9.72% versus a gain of 12.22% for SPY.
Over three years, FTXO compounded at +27.38% per year against +21.70% for SPY; over five years the annualized figures are +8.89% and +12.98% respectively. Across the full 10-year window we track, FTXO has the edge at +8.89% annualized vs +8.79%. Past performance does not guarantee future results.
Risk: Volatility and Drawdowns
FTXO has been the more volatile fund, with annualized monthly volatility of 27.1% 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 -57.8% for FTXO 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 0.66. They move independently enough that combining them can meaningfully diversify a portfolio.
Fees and Cost Over Time
FTXO charges 0.60% per year while SPY charges 0.09%. On a $10,000 position that is $60 vs $9 annually, a gap of $51 per year that compounds over a long holding period. On income, FTXO currently yields 1.72% against 1.01% for SPY.
Holdings Overlap
FTXO and SPY share 13 holdings out of 541 unique holdings combined, representing a 3.5% weight overlap.
Moderate overlap means holding both could provide meaningful diversification benefits.
Frequently Asked Questions
Which is cheaper, FTXO or SPY?
FTXO has an expense ratio of 0.60% while SPY charges 0.09%. SPY is the cheaper option. On a $10,000 investment, that is $51 per year of difference.
Which performed better, FTXO or SPY?
Over the past year FTXO returned +24.25% vs +20.83% for SPY, so FTXO leads on 1-year performance. Over the longest common window we track (10 years), FTXO annualized +8.89% vs +8.79% for SPY. Past performance does not guarantee future results.
Which is riskier, FTXO or SPY?
FTXO has been the more volatile fund at 27.1% annualized versus 15.3% for SPY. Worst drawdown: FTXO -57.8% vs SPY -56.5%.
Should I hold both FTXO and SPY?
FTXO and SPY have a monthly-return correlation of 0.66, so combining them can provide real diversification depending on your allocation goals.
What is the holdings overlap between FTXO and SPY?
FTXO and SPY share 13 common holdings with a 3.5% weight overlap. Combined, they hold 541 unique securities.
Which pays a higher dividend, FTXO or SPY?
FTXO yields 1.72% while SPY yields 1.01%, so FTXO currently pays the higher dividend yield.
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