FXED vs SPY
Sound Enhanced Fixed Income ETF vs State Street SPDR S&P 500 ETF Trust
Quick Verdict
SPY has a lower expense ratio. SPY delivered stronger 1-year returns. SPY offers more diversification with 503 holdings.
Side-by-Side Comparison
| Metric | FXED | SPY | Winner |
|---|---|---|---|
| Expense Ratio | 1.89% | 0.09% | |
| AUM | $40M | $789.1B | |
| Dividend Yield | 4.31% | 1.01% | |
| Holdings | 60 | 505 | |
| YTD Return | +0.13% | +13.39% | |
| 1Y Return | +1.67% | +22.52% | |
| 3Y Return (annualized) | +6.16% | +21.36% | |
| 5Y Return (annualized) | +2.30% | +13.19% | |
| Volatility (annualized) | 9.7% | 15.3% | |
| Max Drawdown | -19.7% | -56.5% | |
| Fund Family | Sound Income Strategies | State Street Investment Management | |
| Category | Fixed Income | Equity | |
| Inception | Dec 30, 2020 | Jan 22, 1993 |
FXED vs SPY Performance
Sound Enhanced Fixed Income ETF (FXED) is a ETF from Sound Income Strategies and State Street SPDR S&P 500 ETF Trust (SPY) is a ETF from State Street Investment Management. Over the past year FXED returned +1.67% while SPY returned +22.52%. Year to date, FXED is up 0.13% versus a gain of 13.39% for SPY.
Over three years, FXED compounded at +6.16% per year against +21.36% for SPY; over five years the annualized figures are +2.30% and +13.19% respectively. Across the full 6-year window we track, SPY has the edge at +8.84% annualized vs +3.32%. Past performance does not guarantee future results.
Risk: Volatility and Drawdowns
SPY has been the more volatile fund, with annualized monthly volatility of 15.3% compared with 9.7% for FXED. 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 -19.7% for FXED 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 0.84. They usually move together, but the gap leaves some room for diversification.
Fees and Cost Over Time
FXED charges 1.89% per year while SPY charges 0.09%. On a $10,000 position that is $189 vs $9 annually, a gap of $180 per year that compounds over a long holding period. On income, FXED currently yields 4.31% against 1.01% for SPY.
Holdings Overlap
FXED and SPY share 4 holdings out of 556 unique holdings combined, representing a 0.3% weight overlap.
Moderate overlap means holding both could provide meaningful diversification benefits.
Frequently Asked Questions
Which is cheaper, FXED or SPY?
FXED has an expense ratio of 1.89% while SPY charges 0.09%. SPY is the cheaper option. On a $10,000 investment, that is $180 per year of difference.
Which performed better, FXED or SPY?
Over the past year FXED returned +1.67% vs +22.52% for SPY, so SPY leads on 1-year performance. Over the longest common window we track (6 years), FXED annualized +3.32% vs +8.84% for SPY. Past performance does not guarantee future results.
Which is riskier, FXED or SPY?
SPY has been the more volatile fund at 15.3% annualized versus 9.7% for FXED. Worst drawdown: FXED -19.7% vs SPY -56.5%.
Should I hold both FXED and SPY?
FXED and SPY have a monthly-return correlation of 0.84, so combining them can provide real diversification depending on your allocation goals.
What is the holdings overlap between FXED and SPY?
FXED and SPY share 4 common holdings with a 0.3% weight overlap. Combined, they hold 556 unique securities.
Which pays a higher dividend, FXED or SPY?
FXED yields 4.31% while SPY yields 1.01%, so FXED currently pays the higher dividend yield.
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