GARP vs SPY
iShares MSCI USA Quality GARP ETF vs State Street SPDR S&P 500 ETF Trust
Which is better, GARP or SPY?
Large Cap Growth against Large Cap Blend.
SPY has a lower expense ratio. GARP led over 1Y, 3Y, 5Y and the full window. The two have moved almost in lockstep, correlation 0.94. SPY is less concentrated, with 38.2% of the fund in its ten largest positions against 43.1%.
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
| Metric | GARP | SPY |
|---|---|---|
| Expense Ratio | 0.15% | 0.09%Best |
| AUM | $3.4B | $811.2B |
| Dividend Yield | 0.26% | 0.98% |
| Holdings | 134 | 1,515 |
| YTD Return | +25.49%Best | +12.70% |
| 1Y Return | +30.35%Best | +15.53% |
| 3Y Return (annualized) | +34.17%Best | +22.86% |
| 5Y Return (annualized) | +19.72%Best | +13.47% |
| Volatility (annualized) | 20.2% | 16.9%Best |
| Max Drawdown | -31.3%Best | -34.1% |
| $10,000 over 5 years | $24,594Best | $18,811 |
| Top 10 Weight | 43.1% | 38.2%Best |
| Fund Family | iShares by BlackRock (US) | State Street Investment Management |
| Category | Equity | Equity |
| Style | Large Cap Growth | Large Cap Blend |
| Inception | Jan 14, 2020 | Jan 22, 1993 |
Volatility and max drawdown are measured over the window both funds cover: Jan 16, 2020 to Oct 1, 2026 (6.7 years).
GARP 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 6.7 years both funds cover.
GARP vs SPY Performance
iShares MSCI USA Quality GARP ETF (GARP) is an ETF from iShares by BlackRock (US) and State Street SPDR S&P 500 ETF Trust (SPY) is an ETF from State Street Investment Management. Over the past year GARP returned +30.35% while SPY returned +15.53%. Year to date, GARP is up 25.49% versus a gain of 12.70% for SPY.
Over three years, GARP compounded at +34.17% per year against +22.86% for SPY; over five years the annualized figures are +19.72% and +13.47% respectively. Across the full 7-year window we track, GARP has the edge at +20.74% annualized vs +14.59%.
Past performance does not guarantee future results.
Risk: Volatility and Drawdowns
GARP has been the more volatile fund, with annualized monthly volatility of 20.2% compared with 16.9% 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 -31.3% for GARP and -34.1% 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 0.94. They move almost in lockstep, so holding both mostly duplicates the same exposure.
Fees and Cost Over Time
GARP charges 0.15% per year while SPY charges 0.09%. On a $10,000 position that is $15 vs $9 annually, a gap of $6 per year that compounds over a long holding period. On income, GARP currently yields 0.26% against 0.98% for SPY.
Holdings Overlap
92.9% of GARP's money is in holdings SPY also owns. 53.6% of SPY's money is in holdings GARP also owns.
Most of GARP is already inside SPY. Owning both mostly buys the same companies twice.
89 positions in common, counted across the 131 positions we hold weights for in GARP and 504 in SPY, against full books of 134 and 1,515.
What only one of them owns
Our book lists 408 positions for SPY that do not appear in our book for GARP (45.6% of the fund), and 37 for GARP that do not appear in SPY (6.4%).
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
| Stock | Weight in GARP | Weight in SPY | Difference |
|---|---|---|---|
| NVDANvidia Corp | 5.04% | 7.78% | 2.74% |
| AAPLApple, Inc | 5.27% | 7.45% | 2.18% |
| MSFTMicrosoft Corp | 5.14% | 5.71% | 0.57% |
| METAMeta Platforms Inc | 4.79% | 2.22% | 2.57% |
| MUMicron Technology, Inc. | 4.71% | 1.59% | 3.12% |
| AMZNAmazon.Com Inc | 2.09% | 3.78% | 1.69% |
| VVisa Inc Class A | 4.60% | 0.95% | 3.65% |
| GOOGLAlphabet Inc,class A | 2.30% | 3.12% | 0.82% |
| GOOGAlphabet Inc. C | 2.18% | 2.49% | 0.31% |
| LRCXLam Research Corp | 3.98% | 0.52% | 3.46% |
92.9% of GARP 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.
Free for up to 10 holdings. No account needed.
Frequently Asked Questions
Which is cheaper, GARP or SPY?
GARP has an expense ratio of 0.15% while SPY charges 0.09%. SPY is the cheaper option, by $6 a year on a $10,000 investment.
Which performed better, GARP or SPY?
Over the past year GARP returned +30.35% vs +15.53% for SPY, so GARP leads on 1-year performance. Over the longest common window we track (7 years), GARP annualized +20.74% vs +14.59% for SPY. Past performance does not guarantee future results. This is information, not a recommendation.
Which is riskier, GARP or SPY?
GARP has been the more volatile fund at 20.2% annualized versus 16.9% for SPY. Worst drawdown: GARP -31.3% vs SPY -34.1%.
Should I hold both GARP and SPY?
GARP and SPY have a monthly-return correlation of 0.94, so they move almost identically. What is left to separate them is the fee and the index each one tracks. This is information, not a recommendation.
What is the holdings overlap between GARP and SPY?
92.9% of GARP's money is in holdings SPY also owns. 53.6% of SPY's is in holdings GARP also owns. They hold 89 positions in common, counted across the 131 positions we hold weights for in GARP and 504 in SPY.
Which pays a higher dividend, GARP or SPY?
GARP yields 0.26% while SPY yields 0.98%, so SPY currently pays the higher dividend yield.
Is SPY better than GARP?
SPY has a lower expense ratio. GARP led over 1Y, 3Y, 5Y and the full window. The two have moved almost in lockstep, correlation 0.94. SPY is less concentrated, with 38.2% of the fund in its ten largest positions against 43.1%. Which one suits a particular account depends on what it is for. This is information, not a recommendation.