FXZ vs SPY

FXZ vs SPY

Which is better, FXZ or SPY?

Mid Cap Value against Large Cap Blend.

SPY has a lower expense ratio. FXZ led over 1Y, SPY over 3Y, 5Y and the full window. SPY is less concentrated, with 38.0% of the fund in its ten largest positions against 46.1%.

Lower Fees: SPYHigher Returns: splitLess Concentrated: SPY

MarketXLS is not an investment adviser. This comparison is generated automatically from market data and is for information only. A Best mark means the better reading on that one measure, not a recommendation to buy.

Side-by-Side Comparison

MetricFXZSPY
Expense Ratio0.64%0.09%Best
AUM$393M$804.7B
Dividend Yield1.27%0.98%
Holdings80505
YTD Return+29.97%Best+12.19%
1Y Return+42.74%Best+18.53%
3Y Return (annualized)+12.03%+20.88%Best
5Y Return (annualized)+10.24%+12.69%Best
Volatility (annualized)24.6%15.5%Best
Max Drawdown-66.0%-56.5%Best
$10,000 over 5 years$16,282$18,173Best
Top 10 Weight46.1%38.0%Best
Fund FamilyFirst Trust Portfolios (US)State Street Investment Management
CategoryEquityEquity
StyleMid Cap ValueLarge Cap Blend
InceptionMay 8, 2007Jan 22, 1993

Volatility and max drawdown are measured over the window both funds cover: May 10, 2007 to Sep 9, 2026 (19.3 years).

FXZ vs SPY growth

Month-end closes. Both lines start at 0% in the first month shown, so the gap between them is the difference in growth across that window. The full view covers the 19.3 years both funds cover.

FXZ vs SPY Performance

First Trust Materials AlphaDEX Fund (FXZ) is an ETF from First Trust Portfolios (US) and State Street SPDR S&P 500 ETF Trust (SPY) is an ETF from State Street Investment Management. Over the past year FXZ returned +42.74% while SPY returned +18.53%. Year to date, FXZ is up 29.97% versus a gain of 12.19% for SPY.

Over three years, FXZ compounded at +12.03% per year against +20.88% for SPY; over five years the annualized figures are +10.24% and +12.69% respectively. Across the full 19-year window we track, SPY has the edge at +9.21% annualized vs +8.35%.

Past performance does not guarantee future results.

Risk: Volatility and Drawdowns

FXZ has been the more volatile fund, with annualized monthly volatility of 24.6% compared with 15.5% 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 -66.0% for FXZ and -56.5% for SPY. Drawdown depth is what each fund did in the worst stretch of the window measured above.

The two funds' monthly returns correlate at 0.83. They usually move together, but the gap leaves some room for diversification.

Fees and Cost Over Time

FXZ charges 0.64% per year while SPY charges 0.09%. On a $10,000 position that is $64 vs $9 annually, a gap of $55 per year that compounds over a long holding period. On income, FXZ currently yields 1.27% against 0.98% for SPY.

Holdings Overlap

FXZ already in SPY35.9%
SPY already in FXZ1.1%

35.9% of FXZ's money is in holdings SPY also owns. 1.1% of SPY's money is in holdings FXZ also owns.

The two portfolios partly overlap.

13 positions in common, counted across the 39 positions we hold weights for in FXZ and 504 in SPY, against full books of 80 and 505.

What only one of them owns

Our book lists 481 positions for SPY that do not appear in our book for FXZ (98.4% of the fund), and 23 for FXZ that do not appear in SPY (49.9%).

Some of those will be the same company recorded under a different code in one of the two books, so the real difference in what you would own is no larger than this and may be smaller. We do not name the individual positions here for that reason.

Top Shared Holdings

StockWeight in FXZWeight in SPYDifference
NEMNewmont Corp.5.89%0.16%5.73%
CFCf Industries Holdings Inc.5.23%0.03%5.20%
STLDSteel Dynamics Inc4.42%0.05%4.37%
NUENucor Corp.3.42%0.09%3.33%
MOSMosaic Co.3.48%0.01%3.47%
IFFInternational Flavors & Fragrances Inc.3.33%0.03%3.30%
AVYAvery Dennison Corp.2.46%0.02%2.44%
LINLinde Plc Ordinary Shares1.44%0.34%1.10%
APDAir Products & Chemicals In1.61%0.10%1.51%
FASTFastenal Co.1.57%0.09%1.48%

35.9% of FXZ is already inside SPY.

You probably hold more than these two. Add the rest and see how much of the whole book is the same companies twice.

FXZSPY

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Frequently Asked Questions

Which is cheaper, FXZ or SPY?

FXZ has an expense ratio of 0.64% while SPY charges 0.09%. SPY is the cheaper option, by $55 a year on a $10,000 investment.

Which performed better, FXZ or SPY?

Over the past year FXZ returned +42.74% vs +18.53% for SPY, so FXZ leads on 1-year performance. Over the longest common window we track (19 years), FXZ annualized +8.35% vs +9.21% for SPY. Past performance does not guarantee future results. This is information, not a recommendation.

Which is riskier, FXZ or SPY?

FXZ has been the more volatile fund at 24.6% annualized versus 15.5% for SPY. Worst drawdown: FXZ -66.0% vs SPY -56.5%.

Should I hold both FXZ and SPY?

FXZ and SPY have a monthly-return correlation of 0.83, so their returns are far enough apart for the mix to behave differently from either one alone. This is information, not a recommendation.

What is the holdings overlap between FXZ and SPY?

35.9% of FXZ's money is in holdings SPY also owns. 1.1% of SPY's is in holdings FXZ also owns. They hold 13 positions in common, counted across the 39 positions we hold weights for in FXZ and 504 in SPY.

Which pays a higher dividend, FXZ or SPY?

FXZ yields 1.27% while SPY yields 0.98%, so FXZ currently pays the higher dividend yield.

Is SPY better than FXZ?

SPY has a lower expense ratio. FXZ led over 1Y, SPY over 3Y, 5Y and the full window. SPY is less concentrated, with 38.0% of the fund in its ten largest positions against 46.1%. Which one suits a particular account depends on what it is for. This is information, not a recommendation.