Quick Verdict

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

Lower Fees: SPYHigher Returns: HAPSMore Diversified: SPY

Side-by-Side Comparison

MetricHAPSSPYWinner
Expense Ratio0.61%0.09%
AUM$171M$789.1B
Dividend Yield0.47%1.01%
Holdings202505
YTD Return+22.06%+13.79%
1Y Return+34.36%+23.66%
3Y Return (annualized)+13.59%+21.40%
5Y Return (annualized)-+13.37%
Volatility (annualized)19.5%15.3%
Max Drawdown-27.4%-56.5%
Fund FamilyHarbor FundsState Street Investment Management
CategoryEquityEquity
InceptionMar 27, 2023Jan 22, 1993

HAPS vs SPY Performance

Harbor Human Capital Factor US Small Cap ETF (HAPS) is a ETF from Harbor Funds and State Street SPDR S&P 500 ETF Trust (SPY) is a ETF from State Street Investment Management. Over the past year HAPS returned +34.36% while SPY returned +23.66%. Year to date, HAPS is up 22.06% versus a gain of 13.79% for SPY.

Over three years, HAPS compounded at +13.59% per year against +21.40% for SPY. Across the full 3-year window we track, HAPS has the edge at +14.14% annualized vs +8.85%. Past performance does not guarantee future results.

Risk: Volatility and Drawdowns

HAPS has been the more volatile fund, with annualized monthly volatility of 19.5% 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 -27.4% for HAPS 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 0.77. They usually move together, but the gap leaves some room for diversification.

Fees and Cost Over Time

HAPS charges 0.61% per year while SPY charges 0.09%. On a $10,000 position that is $61 vs $9 annually, a gap of $52 per year that compounds over a long holding period. On income, HAPS currently yields 0.47% against 1.01% for SPY.

Holdings Overlap

0.0%overlap

HAPS and SPY share 0 holdings out of 698 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, HAPS or SPY?

HAPS has an expense ratio of 0.61% while SPY charges 0.09%. SPY is the cheaper option. On a $10,000 investment, that is $52 per year of difference.

Which performed better, HAPS or SPY?

Over the past year HAPS returned +34.36% vs +23.66% for SPY, so HAPS leads on 1-year performance. Over the longest common window we track (3 years), HAPS annualized +14.14% vs +8.85% for SPY. Past performance does not guarantee future results.

Which is riskier, HAPS or SPY?

HAPS has been the more volatile fund at 19.5% annualized versus 15.3% for SPY. Worst drawdown: HAPS -27.4% vs SPY -56.5%.

Should I hold both HAPS and SPY?

HAPS and SPY have a monthly-return correlation of 0.77, so combining them can provide real diversification depending on your allocation goals.

What is the holdings overlap between HAPS and SPY?

HAPS and SPY share 0 common holdings with a 0.0% weight overlap. Combined, they hold 698 unique securities.

Which pays a higher dividend, HAPS or SPY?

HAPS yields 0.47% while SPY yields 1.01%, so SPY currently pays the higher dividend yield.

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