FVAL vs SPY

Quick Verdict

SPY has a lower expense ratio. FVAL delivered stronger 1-year returns. SPY offers more diversification with 503 holdings.

Lower Fees: SPYHigher Returns: FVALMore Diversified: SPY

Side-by-Side Comparison

MetricFVALSPYWinner
Expense Ratio0.15%0.09%
AUM$1.3B$789.1B
Dividend Yield1.61%1.01%
Holdings129505
YTD Return+15.81%+13.79%
1Y Return+30.64%+23.66%
3Y Return (annualized)+20.40%+21.40%
5Y Return (annualized)+13.02%+13.37%
Volatility (annualized)16.4%15.3%
Max Drawdown-37.7%-56.5%
Fund FamilyFidelity Investments (US)State Street Investment Management
CategoryEquityEquity
InceptionSep 12, 2016Jan 22, 1993

FVAL vs SPY Performance

Fidelity Value Factor ETF (FVAL) 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 FVAL returned +30.64% while SPY returned +23.66%. Year to date, FVAL is up 15.81% versus a gain of 13.79% for SPY.

Over three years, FVAL compounded at +20.40% per year against +21.40% for SPY; over five years the annualized figures are +13.02% and +13.37% respectively. Across the full 10-year window we track, FVAL has the edge at +13.90% annualized vs +8.85%. Past performance does not guarantee future results.

Risk: Volatility and Drawdowns

FVAL has been the more volatile fund, with annualized monthly volatility of 16.4% 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 -37.7% for FVAL 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 0.97. They move almost in lockstep, so holding both mostly duplicates the same exposure.

Fees and Cost Over Time

FVAL 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, FVAL currently yields 1.61% against 1.01% for SPY.

Holdings Overlap

50.5%overlap

FVAL and SPY share 96 holdings out of 533 unique holdings combined, representing a 50.5% weight overlap.

High overlap means holding both may not provide much additional diversification.

Top Shared Holdings

StockWeight in FVALWeight in SPYDifference
NVDA7.87%7.31%0.56%
AAPL6.95%7.09%0.14%
GOOGL5.79%3.32%2.47%
MSFTProProPro
AMZNProProPro
AVGOProProPro
MUProProPro
METAProProPro
LLYProProPro
JNJProProPro
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Frequently Asked Questions

Which is cheaper, FVAL or SPY?

FVAL 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, FVAL or SPY?

Over the past year FVAL returned +30.64% vs +23.66% for SPY, so FVAL leads on 1-year performance. Over the longest common window we track (10 years), FVAL annualized +13.90% vs +8.85% for SPY. Past performance does not guarantee future results.

Which is riskier, FVAL or SPY?

FVAL has been the more volatile fund at 16.4% annualized versus 15.3% for SPY. Worst drawdown: FVAL -37.7% vs SPY -56.5%.

Should I hold both FVAL and SPY?

FVAL and SPY have a monthly-return correlation of 0.97, 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 FVAL and SPY?

FVAL and SPY share 96 common holdings with a 50.5% weight overlap. Combined, they hold 533 unique securities.

Which pays a higher dividend, FVAL or SPY?

FVAL yields 1.61% while SPY yields 1.01%, so FVAL currently pays the higher dividend yield.

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