GAB vs SPY
Gabelli Equity Trust vs State Street SPDR S&P 500 ETF Trust
Quick Verdict
SPY has a lower expense ratio. SPY delivered stronger 1-year returns. GAB offers more diversification with 655 holdings.
Side-by-Side Comparison
| Metric | GAB | SPY | Winner |
|---|---|---|---|
| Expense Ratio | 1.50% | 0.09% | |
| AUM | $2.4B | $789.1B | |
| Dividend Yield | 10.10% | 1.01% | |
| Holdings | 682 | 505 | |
| YTD Return | +0.67% | +14.47% | |
| 1Y Return | +7.80% | +21.96% | |
| 3Y Return (annualized) | +13.26% | +21.70% | |
| 5Y Return (annualized) | +7.40% | +13.30% | |
| Volatility (annualized) | 20.1% | 15.3% | |
| Max Drawdown | -83.0% | -56.5% | |
| Fund Family | Gabelli Funds | State Street Investment Management | |
| Category | Equity | Equity | |
| Inception | Aug 21, 1986 | Jan 22, 1993 |
GAB vs SPY Performance
Gabelli Equity Trust (GAB) is a ETF from Gabelli Funds and State Street SPDR S&P 500 ETF Trust (SPY) is a ETF from State Street Investment Management. Over the past year GAB returned +7.80% while SPY returned +21.96%. Year to date, GAB is up 0.67% versus a gain of 14.47% for SPY.
Over three years, GAB compounded at +13.26% per year against +21.70% for SPY; over five years the annualized figures are +7.40% and +13.30% respectively. Across the full 31-year window we track, SPY has the edge at +8.87% annualized vs +0.58%. Past performance does not guarantee future results.
Risk: Volatility and Drawdowns
GAB has been the more volatile fund, with annualized monthly volatility of 20.1% 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 -83.0% for GAB 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 0.76. They usually move together, but the gap leaves some room for diversification.
Fees and Cost Over Time
GAB charges 1.50% per year while SPY charges 0.09%. On a $10,000 position that is $150 vs $9 annually, a gap of $141 per year that compounds over a long holding period. On income, GAB currently yields 10.10% against 1.01% for SPY.
Holdings Overlap
GAB and SPY share 199 holdings out of 959 unique holdings combined, representing a 19.1% weight overlap.
Moderate overlap means holding both could provide meaningful diversification benefits.
Frequently Asked Questions
Which is cheaper, GAB or SPY?
GAB has an expense ratio of 1.50% while SPY charges 0.09%. SPY is the cheaper option. On a $10,000 investment, that is $141 per year of difference.
Which performed better, GAB or SPY?
Over the past year GAB returned +7.80% vs +21.96% for SPY, so SPY leads on 1-year performance. Over the longest common window we track (31 years), GAB annualized +0.58% vs +8.87% for SPY. Past performance does not guarantee future results.
Which is riskier, GAB or SPY?
GAB has been the more volatile fund at 20.1% annualized versus 15.3% for SPY. Worst drawdown: GAB -83.0% vs SPY -56.5%.
Should I hold both GAB and SPY?
GAB and SPY have a monthly-return correlation of 0.76, so combining them can provide real diversification depending on your allocation goals.
What is the holdings overlap between GAB and SPY?
GAB and SPY share 199 common holdings with a 19.1% weight overlap. Combined, they hold 959 unique securities.
Which pays a higher dividend, GAB or SPY?
GAB yields 10.10% while SPY yields 1.01%, so GAB currently pays the higher dividend yield.
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