FXL vs SPY
First Trust Technology AlphaDEX Fund vs State Street SPDR S&P 500 ETF Trust
Quick Verdict
SPY has a lower expense ratio. FXL delivered stronger 1-year returns. SPY offers more diversification with 505 holdings.
Side-by-Side Comparison
| Metric | FXL | SPY | Winner |
|---|---|---|---|
| Expense Ratio | 0.60% | 0.09% | |
| AUM | $2.9B | $821.1B | |
| Dividend Yield | 0.00% | 1.01% | |
| Holdings | 111 | 505 | |
| YTD Return | +32.38% | +14.24% | |
| 1Y Return | +40.13% | +21.71% | |
| 3Y Return (annualized) | +26.26% | +22.10% | |
| 5Y Return (annualized) | +12.54% | +13.21% | |
| Volatility (annualized) | 22.1% | 15.3% | |
| Max Drawdown | -61.4% | -56.5% | |
| Fund Family | First Trust Portfolios (US) | State Street Investment Management | |
| Category | Equity | Equity | |
| Inception | May 8, 2007 | Jan 22, 1993 |
FXL vs SPY Performance
First Trust Technology AlphaDEX Fund (FXL) 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 FXL returned +40.13% while SPY returned +21.71%. Year to date, FXL is up 32.38% versus a gain of 14.24% for SPY.
Over three years, FXL compounded at +26.26% per year against +22.10% for SPY; over five years the annualized figures are +12.54% and +13.21% respectively. Across the full 19-year window we track, FXL has the edge at +13.65% annualized vs +8.86%. Past performance does not guarantee future results.
Risk: Volatility and Drawdowns
FXL has been the more volatile fund, with annualized monthly volatility of 22.1% 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 -61.4% for FXL 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 0.88. They usually move together, but the gap leaves some room for diversification.
Fees and Cost Over Time
FXL 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, FXL currently yields 0.00% against 1.01% for SPY.
Holdings Overlap
FXL and SPY share 52 holdings out of 562 unique holdings combined, representing a 14.2% weight overlap.
Moderate overlap means holding both could provide meaningful diversification benefits.
Frequently Asked Questions
Which is cheaper, FXL or SPY?
FXL 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, FXL or SPY?
Over the past year FXL returned +40.13% vs +21.71% for SPY, so FXL leads on 1-year performance. Over the longest common window we track (19 years), FXL annualized +13.65% vs +8.86% for SPY. Past performance does not guarantee future results.
Which is riskier, FXL or SPY?
FXL has been the more volatile fund at 22.1% annualized versus 15.3% for SPY. Worst drawdown: FXL -61.4% vs SPY -56.5%.
Should I hold both FXL and SPY?
FXL and SPY have a monthly-return correlation of 0.88, so combining them can provide real diversification depending on your allocation goals.
What is the holdings overlap between FXL and SPY?
FXL and SPY share 52 common holdings with a 14.2% weight overlap. Combined, they hold 562 unique securities.
Which pays a higher dividend, FXL or SPY?
FXL yields 0.00% while SPY yields 1.01%, so SPY currently pays the higher dividend yield.
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