HERZ vs SPY
Herzfeld Caribbean Basin Fund Inc 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 505 holdings.
Side-by-Side Comparison
| Metric | HERZ | SPY | Winner |
|---|---|---|---|
| Expense Ratio | 3.45% | 0.09% | |
| AUM | - | $821.1B | |
| Dividend Yield | - | 1.01% | |
| Holdings | 29 | 505 | |
| YTD Return | -22.67% | +14.24% | |
| 1Y Return | -5.74% | +21.71% | |
| 3Y Return (annualized) | -2.84% | +22.10% | |
| 5Y Return (annualized) | -2.21% | +13.21% | |
| Volatility (annualized) | 32.5% | 15.3% | |
| Max Drawdown | -84.7% | -56.5% | |
| Fund Family | Herzfeld-Cuba | State Street Investment Management | |
| Category | Equity | Equity | |
| Inception | May 20, 1994 | Jan 22, 1993 |
HERZ vs SPY Performance
Herzfeld Caribbean Basin Fund Inc (HERZ) is a ETF from Herzfeld-Cuba and State Street SPDR S&P 500 ETF Trust (SPY) is a ETF from State Street Investment Management. Over the past year HERZ returned -5.74% while SPY returned +21.71%. Year to date, HERZ is down 22.67% versus a gain of 14.24% for SPY.
Over three years, HERZ compounded at -2.84% per year against +22.10% for SPY; over five years the annualized figures are -2.21% and +13.21% respectively. Across the full 31-year window we track, SPY has the edge at +8.86% annualized vs -0.15%. Past performance does not guarantee future results.
Risk: Volatility and Drawdowns
HERZ has been the more volatile fund, with annualized monthly volatility of 32.5% 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 -84.7% for HERZ 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 0.48. They move independently enough that combining them can meaningfully diversify a portfolio.
Fees and Cost Over Time
HERZ charges 3.45% per year while SPY charges 0.09%. On a $10,000 position that is $345 vs $9 annually, a gap of $336 per year that compounds over a long holding period.
Holdings Overlap
HERZ and SPY share 0 holdings out of 523 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, HERZ or SPY?
HERZ has an expense ratio of 3.45% while SPY charges 0.09%. SPY is the cheaper option. On a $10,000 investment, that is $336 per year of difference.
Which performed better, HERZ or SPY?
Over the past year HERZ returned -5.74% vs +21.71% for SPY, so SPY leads on 1-year performance. Over the longest common window we track (31 years), HERZ annualized -0.15% vs +8.86% for SPY. Past performance does not guarantee future results.
Which is riskier, HERZ or SPY?
HERZ has been the more volatile fund at 32.5% annualized versus 15.3% for SPY. Worst drawdown: HERZ -84.7% vs SPY -56.5%.
Should I hold both HERZ and SPY?
HERZ and SPY have a monthly-return correlation of 0.48, so combining them can provide real diversification depending on your allocation goals.
What is the holdings overlap between HERZ and SPY?
HERZ and SPY share 0 common holdings with a 0.0% weight overlap. Combined, they hold 523 unique securities.
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