INCE vs SPY
Franklin Income Equity Focus ETF vs State Street SPDR S&P 500 ETF Trust
Quick Verdict
SPY has a lower expense ratio. INCE delivered stronger 1-year returns. SPY offers more diversification with 503 holdings.
Side-by-Side Comparison
| Metric | INCE | SPY | Winner |
|---|---|---|---|
| Expense Ratio | 0.29% | 0.09% | |
| AUM | $132M | $789.1B | |
| Dividend Yield | 4.82% | 1.01% | |
| Holdings | 82 | 505 | |
| YTD Return | +17.14% | +13.68% | |
| 1Y Return | +26.04% | +21.53% | |
| 3Y Return (annualized) | +16.96% | +21.44% | |
| 5Y Return (annualized) | +10.99% | +13.18% | |
| Volatility (annualized) | 13.8% | 15.3% | |
| Max Drawdown | -34.1% | -56.5% | |
| Fund Family | Franklin Templeton Investments (US) | State Street Investment Management | |
| Category | Equity | Equity | |
| Inception | Sep 20, 2016 | Jan 22, 1993 |
INCE vs SPY Performance
Franklin Income Equity Focus ETF (INCE) is a ETF from Franklin Templeton Investments (US) and State Street SPDR S&P 500 ETF Trust (SPY) is a ETF from State Street Investment Management. Over the past year INCE returned +26.04% while SPY returned +21.53%. Year to date, INCE is up 17.14% versus a gain of 13.68% for SPY.
Over three years, INCE compounded at +16.96% per year against +21.44% for SPY; over five years the annualized figures are +10.99% and +13.18% respectively. Across the full 10-year window we track, INCE has the edge at +12.63% annualized vs +8.85%. 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 13.8% for INCE. 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 -34.1% for INCE 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 0.92. They move almost in lockstep, so holding both mostly duplicates the same exposure.
Fees and Cost Over Time
INCE charges 0.29% per year while SPY charges 0.09%. On a $10,000 position that is $29 vs $9 annually, a gap of $20 per year that compounds over a long holding period. On income, INCE currently yields 4.82% against 1.01% for SPY.
Holdings Overlap
INCE and SPY share 38 holdings out of 512 unique holdings combined, representing a 12.5% weight overlap.
Moderate overlap means holding both could provide meaningful diversification benefits.
Frequently Asked Questions
Which is cheaper, INCE or SPY?
INCE has an expense ratio of 0.29% while SPY charges 0.09%. SPY is the cheaper option. On a $10,000 investment, that is $20 per year of difference.
Which performed better, INCE or SPY?
Over the past year INCE returned +26.04% vs +21.53% for SPY, so INCE leads on 1-year performance. Over the longest common window we track (10 years), INCE annualized +12.63% vs +8.85% for SPY. Past performance does not guarantee future results.
Which is riskier, INCE or SPY?
SPY has been the more volatile fund at 15.3% annualized versus 13.8% for INCE. Worst drawdown: INCE -34.1% vs SPY -56.5%.
Should I hold both INCE and SPY?
INCE and SPY have a monthly-return correlation of 0.92, so they move almost identically. Holding both adds little diversification - most investors pick one, usually on fees or the specific index tracked.
What is the holdings overlap between INCE and SPY?
INCE and SPY share 38 common holdings with a 12.5% weight overlap. Combined, they hold 512 unique securities.
Which pays a higher dividend, INCE or SPY?
INCE yields 4.82% while SPY yields 1.01%, so INCE currently pays the higher dividend yield.
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