GAL vs SPY

Quick Verdict

SPY has a lower expense ratio. SPY delivered stronger 1-year returns. SPY offers more diversification with 503 holdings.

Lower Fees: SPYHigher Returns: SPYMore Diversified: SPY

Side-by-Side Comparison

MetricGALSPYWinner
Expense Ratio0.35%0.09%
AUM$303M$789.1B
Dividend Yield3.21%1.01%
Holdings19505
YTD Return+9.47%+13.68%
1Y Return+16.23%+21.53%
3Y Return (annualized)+13.81%+21.44%
5Y Return (annualized)+6.99%+13.18%
Volatility (annualized)10.0%15.3%
Max Drawdown-28.3%-56.5%
Fund FamilyState Street Investment ManagementState Street Investment Management
CategoryAllocation/BalancedEquity
InceptionApr 25, 2012Jan 22, 1993

GAL vs SPY Performance

State Street Global Allocation ETF (GAL) is a ETF from State Street Investment Management and State Street SPDR S&P 500 ETF Trust (SPY) is a ETF from State Street Investment Management. Over the past year GAL returned +16.23% while SPY returned +21.53%. Year to date, GAL is up 9.47% versus a gain of 13.68% for SPY.

Over three years, GAL compounded at +13.81% per year against +21.44% for SPY; over five years the annualized figures are +6.99% and +13.18% respectively. Across the full 14-year window we track, SPY has the edge at +8.85% annualized vs +5.65%. 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 10.0% for GAL. 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 -28.3% for GAL 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 0.92. They move almost in lockstep, so holding both mostly duplicates the same exposure.

Fees and Cost Over Time

GAL charges 0.35% per year while SPY charges 0.09%. On a $10,000 position that is $35 vs $9 annually, a gap of $26 per year that compounds over a long holding period. On income, GAL currently yields 3.21% against 1.01% for SPY.

Holdings Overlap

0.0%overlap

GAL and SPY share 0 holdings out of 522 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, GAL or SPY?

GAL has an expense ratio of 0.35% while SPY charges 0.09%. SPY is the cheaper option. On a $10,000 investment, that is $26 per year of difference.

Which performed better, GAL or SPY?

Over the past year GAL returned +16.23% vs +21.53% for SPY, so SPY leads on 1-year performance. Over the longest common window we track (14 years), GAL annualized +5.65% vs +8.85% for SPY. Past performance does not guarantee future results.

Which is riskier, GAL or SPY?

SPY has been the more volatile fund at 15.3% annualized versus 10.0% for GAL. Worst drawdown: GAL -28.3% vs SPY -56.5%.

Should I hold both GAL and SPY?

GAL and SPY have a monthly-return correlation of 0.92, so they move almost identically. Holding both adds little diversification - most investors pick one, usually on fees or the specific index tracked.

What is the holdings overlap between GAL and SPY?

GAL and SPY share 0 common holdings with a 0.0% weight overlap. Combined, they hold 522 unique securities.

Which pays a higher dividend, GAL or SPY?

GAL yields 3.21% while SPY yields 1.01%, so GAL currently pays the higher dividend yield.

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