IIF vs SPY
Morgan Stanley India Investment 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 | IIF | SPY | Winner |
|---|---|---|---|
| Expense Ratio | 1.28% | 0.09% | |
| AUM | $318M | $821.1B | |
| Dividend Yield | 7.69% | 1.01% | |
| Holdings | 46 | 505 | |
| YTD Return | -8.31% | +13.17% | |
| 1Y Return | -9.12% | +21.53% | |
| 3Y Return (annualized) | +12.76% | +22.06% | |
| 5Y Return (annualized) | +8.52% | +13.35% | |
| Volatility (annualized) | 31.0% | 15.3% | |
| Max Drawdown | -62.1% | -56.5% | |
| Fund Family | Morgan Stanley Investment Management | State Street Investment Management | |
| Category | Equity | Equity | |
| Inception | Feb 25, 1994 | Jan 22, 1993 |
IIF vs SPY Performance
Morgan Stanley India Investment Fund Inc. (IIF) is a ETF from Morgan Stanley Investment Management and State Street SPDR S&P 500 ETF Trust (SPY) is a ETF from State Street Investment Management. Over the past year IIF returned -9.12% while SPY returned +21.53%. Year to date, IIF is down 8.31% versus a gain of 13.17% for SPY.
Over three years, IIF compounded at +12.76% per year against +22.06% for SPY; over five years the annualized figures are +8.52% and +13.35% respectively. Across the full 25-year window we track, IIF has the edge at +17.66% annualized vs +8.82%. Past performance does not guarantee future results.
Risk: Volatility and Drawdowns
IIF has been the more volatile fund, with annualized monthly volatility of 31.0% 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 -62.1% for IIF 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 0.44. They move independently enough that combining them can meaningfully diversify a portfolio.
Fees and Cost Over Time
IIF charges 1.28% per year while SPY charges 0.09%. On a $10,000 position that is $128 vs $9 annually, a gap of $119 per year that compounds over a long holding period. On income, IIF currently yields 7.69% against 1.01% for SPY.
Holdings Overlap
IIF and SPY share 0 holdings out of 550 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, IIF or SPY?
IIF has an expense ratio of 1.28% while SPY charges 0.09%. SPY is the cheaper option. On a $10,000 investment, that is $119 per year of difference.
Which performed better, IIF or SPY?
Over the past year IIF returned -9.12% vs +21.53% for SPY, so SPY leads on 1-year performance. Over the longest common window we track (25 years), IIF annualized +17.66% vs +8.82% for SPY. Past performance does not guarantee future results.
Which is riskier, IIF or SPY?
IIF has been the more volatile fund at 31.0% annualized versus 15.3% for SPY. Worst drawdown: IIF -62.1% vs SPY -56.5%.
Should I hold both IIF and SPY?
IIF and SPY have a monthly-return correlation of 0.44, so combining them can provide real diversification depending on your allocation goals.
What is the holdings overlap between IIF and SPY?
IIF and SPY share 0 common holdings with a 0.0% weight overlap. Combined, they hold 550 unique securities.
Which pays a higher dividend, IIF or SPY?
IIF yields 7.69% while SPY yields 1.01%, so IIF currently pays the higher dividend yield.
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