GRID vs SPY

GRID vs SPY

Which is better, GRID or SPY?

Mid Cap Blend against Large Cap Blend.

SPY has a lower expense ratio. GRID led over 1Y, 3Y and 5Y, SPY over the full window. SPY is less concentrated, with 37.8% of the fund in its ten largest positions against 58.4%.

Lower Fees: SPYHigher Returns: splitLess Concentrated: SPY

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

MetricGRIDSPY
Expense Ratio0.56%0.09%Best
AUM$11.7B$804.7B
Dividend Yield0.80%0.98%
Holdings255505
YTD Return+14.92%Best+12.09%
1Y Return+20.39%Best+16.29%
3Y Return (annualized)+23.55%Best+21.20%
5Y Return (annualized)+14.79%Best+13.37%
Volatility (annualized)20.4%14.4%Best
Max Drawdown-40.5%-34.1%Best
$10,000 over 5 years$19,931Best$18,728
Top 10 Weight58.4%37.8%Best
Fund FamilyFirst Trust Portfolios (US)State Street Investment Management
CategoryEquityEquity
StyleMid Cap BlendLarge Cap Blend
InceptionNov 16, 2009Jan 22, 1993

Volatility and max drawdown are measured over the window both funds cover: Nov 17, 2009 to Sep 18, 2026 (16.8 years).

GRID 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 16.8 years both funds cover.

GRID vs SPY Performance

First Trust NASDAQ Clean Edge Smart Grid Infrastructure Index Fund (GRID) is an ETF from First Trust Portfolios (US) and State Street SPDR S&P 500 ETF Trust (SPY) is an ETF from State Street Investment Management. Over the past year GRID returned +20.39% while SPY returned +16.29%. Year to date, GRID is up 14.92% versus a gain of 12.09% for SPY.

Over three years, GRID compounded at +23.55% per year against +21.20% for SPY; over five years the annualized figures are +14.79% and +13.37% respectively. Across the full 17-year window we track, SPY has the edge at +12.60% annualized vs +11.53%.

Past performance does not guarantee future results.

Risk: Volatility and Drawdowns

GRID has been the more volatile fund, with annualized monthly volatility of 20.4% compared with 14.4% 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 -40.5% for GRID 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 0.85. They usually move together, but the gap leaves some room for diversification.

Fees and Cost Over Time

GRID charges 0.56% per year while SPY charges 0.09%. On a $10,000 position that is $56 vs $9 annually, a gap of $47 per year that compounds over a long holding period. On income, GRID currently yields 0.80% against 0.98% for SPY.

Holdings Overlap

GRID already in SPY39.4%
SPY already in GRID13.1%

39.4% of GRID's money is in holdings SPY also owns. 13.1% of SPY's money is in holdings GRID also owns.

The two portfolios partly overlap.

20 positions in common, counted across the 117 positions we hold weights for in GRID and 504 in SPY, against full books of 255 and 505.

What only one of them owns

Our book lists 477 positions for SPY that do not appear in our book for GRID (86.3% of the fund), and 22 for GRID that do not appear in SPY (3.8%).

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

StockWeight in GRIDWeight in SPYDifference
NVDANvidia Corp2.25%8.01%5.76%
ETNEaton Corp Plc8.64%0.23%8.41%
JCIJohnson Controls International Plc8.12%0.13%7.99%
PWRQuanta Services Inc7.34%0.14%7.20%
TSLATesla Inc1.82%1.52%0.30%
HUBBHubbell Inc2.43%0.04%2.39%
CSCOCisco Systems Inc. - Ordinary Shares1.69%0.66%1.03%
ORCLOracle Corp - Common1.13%0.36%0.77%
TXNTexas Instrument Inc0.92%0.35%0.57%
GEVGe Vernova, Inc.0.87%0.37%0.50%

39.4% of GRID 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.

GRIDSPY

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Frequently Asked Questions

Which is cheaper, GRID or SPY?

GRID has an expense ratio of 0.56% while SPY charges 0.09%. SPY is the cheaper option, by $47 a year on a $10,000 investment.

Which performed better, GRID or SPY?

Over the past year GRID returned +20.39% vs +16.29% for SPY, so GRID leads on 1-year performance. Over the longest common window we track (17 years), GRID annualized +11.53% vs +12.60% for SPY. Past performance does not guarantee future results. This is information, not a recommendation.

Which is riskier, GRID or SPY?

GRID has been the more volatile fund at 20.4% annualized versus 14.4% for SPY. Worst drawdown: GRID -40.5% vs SPY -34.1%.

Should I hold both GRID and SPY?

GRID and SPY have a monthly-return correlation of 0.85, so their returns are far enough apart for the mix to behave differently from either one alone. This is information, not a recommendation.

What is the holdings overlap between GRID and SPY?

39.4% of GRID's money is in holdings SPY also owns. 13.1% of SPY's is in holdings GRID also owns. They hold 20 positions in common, counted across the 117 positions we hold weights for in GRID and 504 in SPY.

Which pays a higher dividend, GRID or SPY?

GRID yields 0.80% while SPY yields 0.98%, so SPY currently pays the higher dividend yield.

Is SPY better than GRID?

SPY has a lower expense ratio. GRID led over 1Y, 3Y and 5Y, SPY over the full window. SPY is less concentrated, with 37.8% of the fund in its ten largest positions against 58.4%. Which one suits a particular account depends on what it is for. This is information, not a recommendation.