HECA vs SPY
Hedgeye Capital Allocation ETF vs State Street SPDR S&P 500 ETF Trust
Quick Verdict
SPY has a lower expense ratio. SPY delivered stronger 1-year returns. SPY offers more diversification with 503 holdings.
Side-by-Side Comparison
| Metric | HECA | SPY | Winner |
|---|---|---|---|
| Expense Ratio | 1.02% | 0.09% | |
| AUM | $289M | $789.1B | |
| Dividend Yield | 2.04% | 1.01% | |
| Holdings | 22 | 505 | |
| YTD Return | -0.48% | +13.79% | |
| 1Y Return | +11.32% | +23.66% | |
| 3Y Return (annualized) | - | +21.40% | |
| 5Y Return (annualized) | - | +13.37% | |
| Volatility (annualized) | 12.4% | 15.3% | |
| Max Drawdown | -12.8% | -56.5% | |
| Fund Family | Hedgeye Asset Management | State Street Investment Management | |
| Category | Allocation/Balanced | Equity | |
| Inception | Jun 30, 2025 | Jan 22, 1993 |
HECA vs SPY Performance
Hedgeye Capital Allocation ETF (HECA) is a ETF from Hedgeye Asset Management and State Street SPDR S&P 500 ETF Trust (SPY) is a ETF from State Street Investment Management. Over the past year HECA returned +11.32% while SPY returned +23.66%. Year to date, HECA is down 0.48% versus a gain of 13.79% for SPY.
Risk: Volatility and Drawdowns
SPY has been the more volatile fund, with annualized monthly volatility of 15.3% compared with 12.4% for HECA. 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 -12.8% for HECA 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 0.08. They move independently enough that combining them can meaningfully diversify a portfolio.
Fees and Cost Over Time
HECA charges 1.02% per year while SPY charges 0.09%. On a $10,000 position that is $102 vs $9 annually, a gap of $93 per year that compounds over a long holding period. On income, HECA currently yields 2.04% against 1.01% for SPY.
Holdings Overlap
HECA and SPY share 36 holdings out of 515 unique holdings combined, representing a 39.0% weight overlap.
Moderate overlap means holding both could provide meaningful diversification benefits.
Frequently Asked Questions
Which is cheaper, HECA or SPY?
HECA has an expense ratio of 1.02% while SPY charges 0.09%. SPY is the cheaper option. On a $10,000 investment, that is $93 per year of difference.
Which performed better, HECA or SPY?
Over the past year HECA returned +11.32% vs +23.66% for SPY, so SPY leads on 1-year performance. Over the longest common window we track (1 years), HECA annualized +11.44% vs +8.85% for SPY. Past performance does not guarantee future results.
Which is riskier, HECA or SPY?
SPY has been the more volatile fund at 15.3% annualized versus 12.4% for HECA. Worst drawdown: HECA -12.8% vs SPY -56.5%.
Should I hold both HECA and SPY?
HECA and SPY have a monthly-return correlation of 0.08, so combining them can provide real diversification depending on your allocation goals.
What is the holdings overlap between HECA and SPY?
HECA and SPY share 36 common holdings with a 39.0% weight overlap. Combined, they hold 515 unique securities.
Which pays a higher dividend, HECA or SPY?
HECA yields 2.04% while SPY yields 1.01%, so HECA currently pays the higher dividend yield.
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