GAEM vs SPY
Simplify Gamma Emerging Market Bond 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 505 holdings.
Side-by-Side Comparison
| Metric | GAEM | SPY | Winner |
|---|---|---|---|
| Expense Ratio | 0.76% | 0.09% | |
| AUM | $41M | $821.1B | |
| Dividend Yield | 7.15% | 1.01% | |
| Holdings | 80 | 505 | |
| YTD Return | +4.31% | +12.93% | |
| 1Y Return | +8.60% | +20.62% | |
| 3Y Return (annualized) | - | +22.00% | |
| 5Y Return (annualized) | - | +13.33% | |
| Volatility (annualized) | 4.6% | 15.3% | |
| Max Drawdown | -3.8% | -56.5% | |
| Fund Family | Simplify Exchange Traded Funds | State Street Investment Management | |
| Category | Fixed Income | Equity | |
| Inception | Aug 12, 2024 | Jan 22, 1993 |
GAEM vs SPY Performance
Simplify Gamma Emerging Market Bond ETF (GAEM) is a ETF from Simplify Exchange Traded Funds and State Street SPDR S&P 500 ETF Trust (SPY) is a ETF from State Street Investment Management. Over the past year GAEM returned +8.60% while SPY returned +20.62%. Year to date, GAEM is up 4.31% versus a gain of 12.93% for SPY.
Risk: Volatility and Drawdowns
SPY has been the more volatile fund, with annualized monthly volatility of 15.3% compared with 4.6% for GAEM. 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 -3.8% for GAEM 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
GAEM charges 0.76% per year while SPY charges 0.09%. On a $10,000 position that is $76 vs $9 annually, a gap of $67 per year that compounds over a long holding period. On income, GAEM currently yields 7.15% against 1.01% for SPY.
Holdings Overlap
GAEM and SPY share 0 holdings out of 531 unique holdings combined, representing a 0.0% weight overlap.
Moderate overlap means holding both could provide meaningful diversification benefits.
Frequently Asked Questions
Which is cheaper, GAEM or SPY?
GAEM has an expense ratio of 0.76% while SPY charges 0.09%. SPY is the cheaper option. On a $10,000 investment, that is $67 per year of difference.
Which performed better, GAEM or SPY?
Over the past year GAEM returned +8.60% vs +20.62% for SPY, so SPY leads on 1-year performance. Over the longest common window we track (2 years), GAEM annualized +10.39% vs +8.82% for SPY. Past performance does not guarantee future results.
Which is riskier, GAEM or SPY?
SPY has been the more volatile fund at 15.3% annualized versus 4.6% for GAEM. Worst drawdown: GAEM -3.8% vs SPY -56.5%.
Should I hold both GAEM and SPY?
GAEM 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 GAEM and SPY?
GAEM and SPY share 0 common holdings with a 0.0% weight overlap. Combined, they hold 531 unique securities.
Which pays a higher dividend, GAEM or SPY?
GAEM yields 7.15% while SPY yields 1.01%, so GAEM currently pays the higher dividend yield.
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