HEZU vs SPY

Quick Verdict

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

Lower Fees: SPYHigher Returns: HEZUMore Diversified: SPY

Side-by-Side Comparison

MetricHEZUSPYWinner
Expense Ratio0.53%0.09%
AUM$568M$789.1B
Dividend Yield2.55%1.01%
Holdings233505
YTD Return+15.60%+13.68%
1Y Return+27.31%+21.53%
3Y Return (annualized)+20.04%+21.44%
5Y Return (annualized)+13.09%+13.18%
Volatility (annualized)15.9%15.3%
Max Drawdown-38.8%-56.5%
Fund FamilyiShares by BlackRock (US)State Street Investment Management
CategoryEquityEquity
InceptionJul 9, 2014Jan 22, 1993

HEZU vs SPY Performance

iShares Currency Hedged MSCI Eurozone ETF (HEZU) is a ETF from iShares by BlackRock (US) and State Street SPDR S&P 500 ETF Trust (SPY) is a ETF from State Street Investment Management. Over the past year HEZU returned +27.31% while SPY returned +21.53%. Year to date, HEZU is up 15.60% versus a gain of 13.68% for SPY.

Over three years, HEZU compounded at +20.04% per year against +21.44% for SPY; over five years the annualized figures are +13.09% and +13.18% respectively. Across the full 12-year window we track, HEZU has the edge at +9.39% annualized vs +8.85%. Past performance does not guarantee future results.

Risk: Volatility and Drawdowns

HEZU has been the more volatile fund, with annualized monthly volatility of 15.9% 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 -38.8% for HEZU 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

HEZU charges 0.53% per year while SPY charges 0.09%. On a $10,000 position that is $53 vs $9 annually, a gap of $44 per year that compounds over a long holding period. On income, HEZU currently yields 2.55% against 1.01% for SPY.

Holdings Overlap

0.0%overlap

HEZU and SPY share 0 holdings out of 515 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, HEZU or SPY?

HEZU has an expense ratio of 0.53% while SPY charges 0.09%. SPY is the cheaper option. On a $10,000 investment, that is $44 per year of difference.

Which performed better, HEZU or SPY?

Over the past year HEZU returned +27.31% vs +21.53% for SPY, so HEZU leads on 1-year performance. Over the longest common window we track (12 years), HEZU annualized +9.39% vs +8.85% for SPY. Past performance does not guarantee future results.

Which is riskier, HEZU or SPY?

HEZU has been the more volatile fund at 15.9% annualized versus 15.3% for SPY. Worst drawdown: HEZU -38.8% vs SPY -56.5%.

Should I hold both HEZU and SPY?

HEZU 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 HEZU and SPY?

HEZU and SPY share 0 common holdings with a 0.0% weight overlap. Combined, they hold 515 unique securities.

Which pays a higher dividend, HEZU or SPY?

HEZU yields 2.55% while SPY yields 1.01%, so HEZU currently pays the higher dividend yield.

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