HWSM vs SPY
Hotchkis & Wiley SMID Cap Diversified Value Fund ETF vs State Street SPDR S&P 500 ETF Trust
Quick Verdict
SPY has a lower expense ratio. HWSM delivered stronger 1-year returns. SPY offers more diversification with 505 holdings.
Side-by-Side Comparison
| Metric | HWSM | SPY | Winner |
|---|---|---|---|
| Expense Ratio | 0.55% | 0.09% | |
| AUM | $3M | $821.1B | |
| Dividend Yield | 1.15% | 1.01% | |
| Holdings | 166 | 505 | |
| YTD Return | +16.53% | +12.68% | |
| 1Y Return | +23.66% | +21.82% | |
| 3Y Return (annualized) | - | +21.98% | |
| 5Y Return (annualized) | - | +12.89% | |
| Volatility (annualized) | 12.0% | 15.3% | |
| Max Drawdown | -15.7% | -56.5% | |
| Fund Family | Hotchkis & Wiley Funds | State Street Investment Management | |
| Category | Equity | Equity | |
| Inception | Mar 31, 2025 | Jan 22, 1993 |
HWSM vs SPY Performance
Hotchkis & Wiley SMID Cap Diversified Value Fund ETF (HWSM) is a ETF from Hotchkis & Wiley Funds and State Street SPDR S&P 500 ETF Trust (SPY) is a ETF from State Street Investment Management. Over the past year HWSM returned +23.66% while SPY returned +21.82%. Year to date, HWSM is up 16.53% versus a gain of 12.68% for SPY.
Risk: Volatility and Drawdowns
SPY has been the more volatile fund, with annualized monthly volatility of 15.3% compared with 12.0% for HWSM. 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 -15.7% for HWSM 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 0.58. They move independently enough that combining them can meaningfully diversify a portfolio.
Fees and Cost Over Time
HWSM charges 0.55% per year while SPY charges 0.09%. On a $10,000 position that is $55 vs $9 annually, a gap of $46 per year that compounds over a long holding period. On income, HWSM currently yields 1.15% against 1.01% for SPY.
Holdings Overlap
HWSM and SPY share 41 holdings out of 628 unique holdings combined, representing a 1.6% weight overlap.
Moderate overlap means holding both could provide meaningful diversification benefits.
Frequently Asked Questions
Which is cheaper, HWSM or SPY?
HWSM has an expense ratio of 0.55% while SPY charges 0.09%. SPY is the cheaper option. On a $10,000 investment, that is $46 per year of difference.
Which performed better, HWSM or SPY?
Over the past year HWSM returned +23.66% vs +21.82% for SPY, so HWSM leads on 1-year performance. Over the longest common window we track (1 years), HWSM annualized +21.62% vs +8.81% for SPY. Past performance does not guarantee future results.
Which is riskier, HWSM or SPY?
SPY has been the more volatile fund at 15.3% annualized versus 12.0% for HWSM. Worst drawdown: HWSM -15.7% vs SPY -56.5%.
Should I hold both HWSM and SPY?
HWSM and SPY have a monthly-return correlation of 0.58, so combining them can provide real diversification depending on your allocation goals.
What is the holdings overlap between HWSM and SPY?
HWSM and SPY share 41 common holdings with a 1.6% weight overlap. Combined, they hold 628 unique securities.
Which pays a higher dividend, HWSM or SPY?
HWSM yields 1.15% while SPY yields 1.01%, so HWSM currently pays the higher dividend yield.
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