GEM vs SPY
Goldman Sachs ActiveBeta Emerging Markets Equity ETF vs State Street SPDR S&P 500 ETF Trust
Quick Verdict
SPY has a lower expense ratio. GEM delivered stronger 1-year returns. GEM offers more diversification with 722 holdings.
Side-by-Side Comparison
| Metric | GEM | SPY | Winner |
|---|---|---|---|
| Expense Ratio | 0.35% | 0.09% | |
| AUM | $1.7B | $789.1B | |
| Dividend Yield | 1.87% | 1.01% | |
| Holdings | 777 | 505 | |
| YTD Return | +18.02% | +13.79% | |
| 1Y Return | +34.93% | +23.66% | |
| 3Y Return (annualized) | +20.18% | +21.40% | |
| 5Y Return (annualized) | +7.46% | +13.37% | |
| Volatility (annualized) | 16.5% | 15.3% | |
| Max Drawdown | -37.0% | -56.5% | |
| Fund Family | Goldman Sachs Asset Management | State Street Investment Management | |
| Category | Equity | Equity | |
| Inception | Sep 25, 2015 | Jan 22, 1993 |
GEM vs SPY Performance
Goldman Sachs ActiveBeta Emerging Markets Equity ETF (GEM) is a ETF from Goldman Sachs Asset Management and State Street SPDR S&P 500 ETF Trust (SPY) is a ETF from State Street Investment Management. Over the past year GEM returned +34.93% while SPY returned +23.66%. Year to date, GEM is up 18.02% versus a gain of 13.79% for SPY.
Over three years, GEM compounded at +20.18% per year against +21.40% for SPY; over five years the annualized figures are +7.46% and +13.37% respectively. Across the full 11-year window we track, GEM has the edge at +9.10% annualized vs +8.85%. Past performance does not guarantee future results.
Risk: Volatility and Drawdowns
GEM has been the more volatile fund, with annualized monthly volatility of 16.5% 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 -37.0% for GEM 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 0.70. 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 1.01% for SPY.
Holdings Overlap
GEM and SPY share 1 holdings out of 1224 unique holdings combined, representing a 0.1% weight overlap.
Moderate overlap means holding both could provide meaningful diversification benefits.
Top Shared Holdings
| Stock | Weight in GEM | Weight in SPY | Difference |
|---|---|---|---|
| TEL | 0.05% | 0.09% | 0.04% |
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. On a $10,000 investment, that is $26 per year of difference.
Which performed better, GEM or SPY?
Over the past year GEM returned +34.93% vs +23.66% for SPY, so GEM leads on 1-year performance. Over the longest common window we track (11 years), GEM annualized +9.10% vs +8.85% for SPY. Past performance does not guarantee future results.
Which is riskier, GEM or SPY?
GEM has been the more volatile fund at 16.5% annualized versus 15.3% for SPY. Worst drawdown: GEM -37.0% vs SPY -56.5%.
Should I hold both GEM and SPY?
GEM and SPY have a monthly-return correlation of 0.70, so combining them can provide real diversification depending on your allocation goals.
What is the holdings overlap between GEM and SPY?
GEM and SPY share 1 common holdings with a 0.1% weight overlap. Combined, they hold 1224 unique securities.
Which pays a higher dividend, GEM or SPY?
GEM yields 1.87% while SPY yields 1.01%, so GEM currently pays the higher dividend yield.
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