GEM vs SPY
Goldman Sachs ActiveBeta Emerging Markets Equity ETF vs State Street SPDR S&P 500 ETF Trust
Which is better, GEM or SPY?
Each has led over a different period.
SPY has a lower expense ratio. GEM led over 1Y, SPY over 3Y, 5Y and the full window. GEM is less concentrated, with 37.3% of the fund in its ten largest positions against 38.2%.
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 | GEM | SPY |
|---|---|---|
| Expense Ratio | 0.35% | 0.09%Best |
| AUM | $1.8B | $811.2B |
| Dividend Yield | 1.87% | 0.98% |
| Holdings | 1,478 | 1,515 |
| YTD Return | +21.02%Best | +13.54% |
| 1Y Return | +27.90%Best | +16.25% |
| 3Y Return (annualized) | +23.47% | +23.72%Best |
| 5Y Return (annualized) | +9.03% | +13.95%Best |
| Volatility (annualized) | 16.4% | 15.1%Best |
| Max Drawdown | -37.0% | -34.1%Best |
| $10,000 over 5 years | $15,407 | $19,212Best |
| Top 10 Weight | 37.3%Best | 38.2% |
| Fund Family | Goldman Sachs Asset Management | State Street Investment Management |
| Category | Equity | Equity |
| Style | Large Cap Blend | Large Cap Blend |
| Inception | Sep 25, 2015 | Jan 22, 1993 |
Volatility and max drawdown are measured over the window both funds cover: Sep 29, 2015 to Oct 2, 2026 (11 years).
GEM 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 11 years both funds cover.
GEM vs SPY Performance
Goldman Sachs ActiveBeta Emerging Markets Equity ETF (GEM) is an ETF from Goldman Sachs Asset Management and State Street SPDR S&P 500 ETF Trust (SPY) is an ETF from State Street Investment Management. Over the past year GEM returned +27.90% while SPY returned +16.25%. Year to date, GEM is up 21.02% versus a gain of 13.54% for SPY.
Over three years, GEM compounded at +23.47% per year against +23.72% for SPY; over five years the annualized figures are +9.03% and +13.95% respectively. Across the full 11-year window we track, SPY has the edge at +14.45% annualized vs +9.22%.
Past performance does not guarantee future results.
Risk: Volatility and Drawdowns
GEM has been the more volatile fund, with annualized monthly volatility of 16.4% compared with 15.1% 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 -37.0% for GEM 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 0.70. They usually move together, but the gap leaves some room for diversification.
Fees and Cost Over Time
GEM 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, GEM currently yields 1.87% against 0.98% for SPY.
Holdings Overlap
0.1% of GEM's money is in holdings SPY also owns. 0.1% of SPY's money is in holdings GEM also owns.
We cannot see either book well enough to say how much of this pair is duplicated.
1 positions in common, counted across the 732 positions we hold weights for in GEM and 504 in SPY, against full books of 1,478 and 1,515.
What only one of them owns
Our book lists 496 positions for SPY that do not appear in our book for GEM (99.1% of the fund), and 15 for GEM that do not appear in SPY (5.2%).
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 GEM | Weight in SPY | Difference |
|---|---|---|---|
| TELTE Connectivity PLC Common Stock | 0.06% | 0.09% | 0.03% |
You are not choosing between two funds in isolation.
Whichever of GEM and SPY you pick has to sit alongside everything else you own. Add the rest and see what the combination actually holds.
Free for up to 10 holdings. No account needed.
Frequently Asked Questions
Which is cheaper, GEM or SPY?
GEM has an expense ratio of 0.35% while SPY charges 0.09%. SPY is the cheaper option, by $26 a year on a $10,000 investment.
Which performed better, GEM or SPY?
Over the past year GEM returned +27.90% vs +16.25% for SPY, so GEM leads on 1-year performance. Over the longest common window we track (11 years), GEM annualized +9.22% vs +14.45% for SPY. Past performance does not guarantee future results. This is information, not a recommendation.
Which is riskier, GEM or SPY?
GEM has been the more volatile fund at 16.4% annualized versus 15.1% for SPY. Worst drawdown: GEM -37.0% vs SPY -34.1%.
Should I hold both GEM and SPY?
GEM and SPY have a monthly-return correlation of 0.70, so their returns are far enough apart for the mix to behave differently from either one alone. This is information, not a recommendation.
Which pays a higher dividend, GEM or SPY?
GEM yields 1.87% while SPY yields 0.98%, so GEM currently pays the higher dividend yield.
Is SPY better than GEM?
SPY has a lower expense ratio. GEM led over 1Y, SPY over 3Y, 5Y and the full window. GEM is less concentrated, with 37.3% of the fund in its ten largest positions against 38.2%. Which one suits a particular account depends on what it is for. This is information, not a recommendation.