FXG vs SPY

Quick Verdict

SPY has a lower expense ratio. SPY delivered stronger 1-year returns. SPY offers more diversification with 505 holdings.

Lower Fees: SPYHigher Returns: SPYMore Diversified: SPY

Side-by-Side Comparison

MetricFXGSPYWinner
Expense Ratio0.63%0.09%
AUM$232M$821.1B
Dividend Yield2.37%1.01%
Holdings41505
YTD Return+8.92%+14.24%
1Y Return+4.54%+21.71%
3Y Return (annualized)+3.18%+22.10%
5Y Return (annualized)+4.38%+13.21%
Volatility (annualized)14.7%15.3%
Max Drawdown-40.0%-56.5%
Fund FamilyFirst Trust Portfolios (US)State Street Investment Management
CategoryEquityEquity
InceptionMay 8, 2007Jan 22, 1993

FXG vs SPY Performance

First Trust Consumer Staples AlphaDEX Fund (FXG) 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 FXG returned +4.54% while SPY returned +21.71%. Year to date, FXG is up 8.92% versus a gain of 14.24% for SPY.

Over three years, FXG compounded at +3.18% per year against +22.10% for SPY; over five years the annualized figures are +4.38% and +13.21% respectively. Across the full 19-year window we track, SPY has the edge at +8.86% annualized vs +6.99%. 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 14.7% for FXG. 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 -40.0% for FXG 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 0.71. They usually move together, but the gap leaves some room for diversification.

Fees and Cost Over Time

FXG charges 0.63% per year while SPY charges 0.09%. On a $10,000 position that is $63 vs $9 annually, a gap of $54 per year that compounds over a long holding period. On income, FXG currently yields 2.37% against 1.01% for SPY.

Holdings Overlap

2.7%overlap

FXG and SPY share 24 holdings out of 520 unique holdings combined, representing a 2.7% weight overlap.

Moderate overlap means holding both could provide meaningful diversification benefits.

Top Shared Holdings

StockWeight in FXGWeight in SPYDifference
MKC4.20%0.02%4.18%
GIS4.16%0.03%4.13%
CASY3.46%0.05%3.41%
CAHProProPro
MNSTProProPro
STZProProPro
PGProProPro
BFBProProPro
SYYProProPro
TSNProProPro
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Frequently Asked Questions

Which is cheaper, FXG or SPY?

FXG has an expense ratio of 0.63% while SPY charges 0.09%. SPY is the cheaper option. On a $10,000 investment, that is $54 per year of difference.

Which performed better, FXG or SPY?

Over the past year FXG returned +4.54% vs +21.71% for SPY, so SPY leads on 1-year performance. Over the longest common window we track (19 years), FXG annualized +6.99% vs +8.86% for SPY. Past performance does not guarantee future results.

Which is riskier, FXG or SPY?

SPY has been the more volatile fund at 15.3% annualized versus 14.7% for FXG. Worst drawdown: FXG -40.0% vs SPY -56.5%.

Should I hold both FXG and SPY?

FXG and SPY have a monthly-return correlation of 0.71, so combining them can provide real diversification depending on your allocation goals.

What is the holdings overlap between FXG and SPY?

FXG and SPY share 24 common holdings with a 2.7% weight overlap. Combined, they hold 520 unique securities.

Which pays a higher dividend, FXG or SPY?

FXG yields 2.37% while SPY yields 1.01%, so FXG currently pays the higher dividend yield.

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