INCM vs SPY
Franklin Income Focus ETF vs State Street SPDR S&P 500 ETF Trust
Which is better, INCM or SPY?
Allocation/Balanced against Large Cap Blend.
SPY has a lower expense ratio. SPY led over 1Y, 3Y and the full window.
MarketXLS is not an investment adviser. This comparison is generated automatically from market data and is for information only. A Best mark means the better reading on that one measure, not a recommendation to buy.
Side-by-Side Comparison
| Metric | INCM | SPY |
|---|---|---|
| Expense Ratio | 0.38% | 0.09%Best |
| AUM | $1.8B | $804.7B |
| Dividend Yield | 5.18% | 0.98% |
| Holdings | 381 | 505 |
| YTD Return | +6.89% | +11.45%Best |
| 1Y Return | +10.54% | +15.87%Best |
| 3Y Return (annualized) | +11.18% | +20.93%Best |
| 5Y Return (annualized) | - | +12.59% |
| Volatility (annualized) | 7.2%Best | 12.7% |
| Max Drawdown | -7.8%Best | -18.8% |
| $10,000 over 3.3 years | $13,869 | $18,483Best |
| Fund Family | Franklin Templeton Investments (US) | State Street Investment Management |
| Category | Allocation/Balanced | Equity |
| Style | Allocation/Balanced | Large Cap Blend |
| Inception | Jun 6, 2023 | Jan 22, 1993 |
Not shown on this pair: Top 10 Weight.
Volatility and max drawdown, and the $10,000 over 3.3 years row, are measured over the window both funds cover: Jun 8, 2023 to Sep 15, 2026 (3.3 years).
INCM vs SPY growth
Month-end closes. Both lines start at 0% in the first month shown, so the gap between them is the difference in growth across that window. The full view covers the 3.3 years both funds cover.
INCM vs SPY Performance
Franklin Income Focus ETF (INCM) is an ETF from Franklin Templeton Investments (US) and State Street SPDR S&P 500 ETF Trust (SPY) is an ETF from State Street Investment Management. Over the past year INCM returned +10.54% while SPY returned +15.87%. Year to date, INCM is up 6.89% versus a gain of 11.45% for SPY.
Over three years, INCM compounded at +11.18% per year against +20.93% for SPY.
Past performance does not guarantee future results.
Risk: Volatility and Drawdowns
SPY has been the more volatile fund, with annualized monthly volatility of 12.7% compared with 7.2% for INCM. 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 -7.8% for INCM and -18.8% for SPY. Drawdown depth is what each fund did in the worst stretch of the window measured above.
The two funds' monthly returns correlate at 0.72. They usually move together, but the gap leaves some room for diversification.
Fees and Cost Over Time
INCM charges 0.38% per year while SPY charges 0.09%. On a $10,000 position that is $38 vs $9 annually, a gap of $29 per year that compounds over a long holding period. On income, INCM currently yields 5.18% against 0.98% for SPY.
Holdings Overlap
At least 21.5% of SPY's money is in holdings INCM also owns.
Stated as a floor: for INCM, our book for it covers 58.0% of that fund, so a holding it does not list is one we cannot count as shared. The real figure is this or higher.
SPY and INCM share little of their money.
42 positions in common, counted across the 257 positions we hold weights for in INCM and 504 in SPY, against full books of 381 and 505.
Top Shared Holdings
| Stock | Weight in INCM | Weight in SPY | Difference |
|---|---|---|---|
| MSFTMicrosoft Corp | 0.21% | 5.66% | 5.45% |
| AMZNAmazon.Com Inc | 0.19% | 3.79% | 3.60% |
| XOMExxon Mobil Corp. | 1.47% | 1.04% | 0.43% |
| PGProcter & Gamble Company | 1.85% | 0.52% | 1.33% |
| CVXChevron Corp | 1.38% | 0.60% | 0.78% |
| HDHome Depot Inc/The | 1.24% | 0.48% | 0.76% |
| PEPPepsico Inc. | 1.21% | 0.29% | 0.92% |
| JNJJohnson & Johnson - Common | 0.51% | 0.99% | 0.48% |
| BACBank of America Corp.: Financials | 0.76% | 0.62% | 0.14% |
| DUKDuke Energy Corp | 1.12% | 0.14% | 0.98% |
21.5% of SPY is already inside INCM.
You probably hold more than these two. Add the rest and see how much of the whole book is the same companies twice.
Free for up to 10 holdings. No account needed.
Frequently Asked Questions
Which is cheaper, INCM or SPY?
INCM has an expense ratio of 0.38% while SPY charges 0.09%. SPY is the cheaper option, by $29 a year on a $10,000 investment.
Which performed better, INCM or SPY?
Over the past year INCM returned +10.54% vs +15.87% for SPY, so SPY leads on 1-year performance. Past performance does not guarantee future results. This is information, not a recommendation.
Which is riskier, INCM or SPY?
SPY has been the more volatile fund at 12.7% annualized versus 7.2% for INCM. Worst drawdown: INCM -7.8% vs SPY -18.8%.
Should I hold both INCM and SPY?
INCM and SPY have a monthly-return correlation of 0.72, so their returns are far enough apart for the mix to behave differently from either one alone. This is information, not a recommendation.
What is the holdings overlap between INCM and SPY?
At least 21.5% of SPY's money is in holdings INCM also owns. Our book for INCM is partial, so the real figure is this or higher. They hold 42 positions in common, counted across the 257 positions we hold weights for in INCM and 504 in SPY.
Which pays a higher dividend, INCM or SPY?
INCM yields 5.18% while SPY yields 0.98%, so INCM currently pays the higher dividend yield.
Is SPY better than INCM?
SPY has a lower expense ratio. SPY led over 1Y, 3Y and the full window. Which one suits a particular account depends on what it is for. This is information, not a recommendation.