HSMV vs SPY
First Trust Horizon Managed Volatility Small/Mid 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 505 holdings.
Side-by-Side Comparison
| Metric | HSMV | SPY | Winner |
|---|---|---|---|
| Expense Ratio | 0.80% | 0.09% | |
| AUM | $41M | $821.1B | |
| Dividend Yield | 1.86% | 1.01% | |
| Holdings | 151 | 505 | |
| YTD Return | +9.80% | +12.68% | |
| 1Y Return | +9.04% | +21.82% | |
| 3Y Return (annualized) | +10.39% | +21.98% | |
| 5Y Return (annualized) | +5.02% | +12.89% | |
| Volatility (annualized) | 14.7% | 15.3% | |
| Max Drawdown | -19.2% | -56.5% | |
| Fund Family | First Trust Portfolios (US) | State Street Investment Management | |
| Category | Equity | Equity | |
| Inception | Apr 6, 2020 | Jan 22, 1993 |
HSMV vs SPY Performance
First Trust Horizon Managed Volatility Small/Mid ETF (HSMV) is a ETF from First Trust Portfolios (US) and State Street SPDR S&P 500 ETF Trust (SPY) is a ETF from State Street Investment Management. Over the past year HSMV returned +9.04% while SPY returned +21.82%. Year to date, HSMV is up 9.80% versus a gain of 12.68% for SPY.
Over three years, HSMV compounded at +10.39% per year against +21.98% for SPY; over five years the annualized figures are +5.02% and +12.89% respectively. Across the full 6-year window we track, HSMV has the edge at +11.38% annualized vs +8.81%. Past performance does not guarantee future results.
Risk: Volatility and Drawdowns
SPY has been the more volatile fund, with annualized monthly volatility of 15.3% compared with 14.7% for HSMV. 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 -19.2% for HSMV 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 0.79. They usually move together, but the gap leaves some room for diversification.
Fees and Cost Over Time
HSMV charges 0.80% per year while SPY charges 0.09%. On a $10,000 position that is $80 vs $9 annually, a gap of $71 per year that compounds over a long holding period. On income, HSMV currently yields 1.86% against 1.01% for SPY.
Holdings Overlap
HSMV and SPY share 1 holdings out of 653 unique holdings combined, representing a 0.1% weight overlap.
Moderate overlap means holding both could provide meaningful diversification benefits.
Top Shared Holdings
| Stock | Weight in HSMV | Weight in SPY | Difference |
|---|---|---|---|
| PSA | 0.21% | 0.08% | 0.13% |
Frequently Asked Questions
Which is cheaper, HSMV or SPY?
HSMV has an expense ratio of 0.80% while SPY charges 0.09%. SPY is the cheaper option. On a $10,000 investment, that is $71 per year of difference.
Which performed better, HSMV or SPY?
Over the past year HSMV returned +9.04% vs +21.82% for SPY, so SPY leads on 1-year performance. Over the longest common window we track (6 years), HSMV annualized +11.38% vs +8.81% for SPY. Past performance does not guarantee future results.
Which is riskier, HSMV or SPY?
SPY has been the more volatile fund at 15.3% annualized versus 14.7% for HSMV. Worst drawdown: HSMV -19.2% vs SPY -56.5%.
Should I hold both HSMV and SPY?
HSMV and SPY have a monthly-return correlation of 0.79, so combining them can provide real diversification depending on your allocation goals.
What is the holdings overlap between HSMV and SPY?
HSMV and SPY share 1 common holdings with a 0.1% weight overlap. Combined, they hold 653 unique securities.
Which pays a higher dividend, HSMV or SPY?
HSMV yields 1.86% while SPY yields 1.01%, so HSMV currently pays the higher dividend yield.
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