Quick Verdict

SPY has a lower expense ratio. JHEM delivered stronger 1-year returns. JHEM offers more diversification with 945 holdings.

Lower Fees: SPYHigher Returns: JHEMMore Diversified: JHEM

Side-by-Side Comparison

MetricJHEMSPYWinner
Expense Ratio0.49%0.09%
AUM$987M$789.1B
Dividend Yield1.78%1.01%
Holdings956505
YTD Return+17.59%+13.79%
1Y Return+34.86%+23.66%
3Y Return (annualized)+19.65%+21.40%
5Y Return (annualized)+8.08%+13.37%
Volatility (annualized)17.8%15.3%
Max Drawdown-35.0%-56.5%
Fund FamilyJohn Hancock Investment ManagementState Street Investment Management
CategoryEquityEquity
InceptionSep 27, 2018Jan 22, 1993

JHEM vs SPY Performance

John Hancock Multifactor Emerging Markets ETF (JHEM) is a ETF from John Hancock Investment Management and State Street SPDR S&P 500 ETF Trust (SPY) is a ETF from State Street Investment Management. Over the past year JHEM returned +34.86% while SPY returned +23.66%. Year to date, JHEM is up 17.59% versus a gain of 13.79% for SPY.

Over three years, JHEM compounded at +19.65% per year against +21.40% for SPY; over five years the annualized figures are +8.08% and +13.37% respectively. Across the full 8-year window we track, SPY has the edge at +8.85% annualized vs +7.79%. Past performance does not guarantee future results.

Risk: Volatility and Drawdowns

JHEM has been the more volatile fund, with annualized monthly volatility of 17.8% 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 -35.0% for JHEM 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 0.73. They usually move together, but the gap leaves some room for diversification.

Fees and Cost Over Time

JHEM charges 0.49% per year while SPY charges 0.09%. On a $10,000 position that is $49 vs $9 annually, a gap of $40 per year that compounds over a long holding period. On income, JHEM currently yields 1.78% against 1.01% for SPY.

Holdings Overlap

0.1%overlap

JHEM and SPY share 2 holdings out of 1446 unique holdings combined, representing a 0.1% weight overlap.

Moderate overlap means holding both could provide meaningful diversification benefits.

Top Shared Holdings

StockWeight in JHEMWeight in SPYDifference
TEL0.04%0.09%0.05%
HAL0.06%0.04%0.02%

Frequently Asked Questions

Which is cheaper, JHEM or SPY?

JHEM has an expense ratio of 0.49% while SPY charges 0.09%. SPY is the cheaper option. On a $10,000 investment, that is $40 per year of difference.

Which performed better, JHEM or SPY?

Over the past year JHEM returned +34.86% vs +23.66% for SPY, so JHEM leads on 1-year performance. Over the longest common window we track (8 years), JHEM annualized +7.79% vs +8.85% for SPY. Past performance does not guarantee future results.

Which is riskier, JHEM or SPY?

JHEM has been the more volatile fund at 17.8% annualized versus 15.3% for SPY. Worst drawdown: JHEM -35.0% vs SPY -56.5%.

Should I hold both JHEM and SPY?

JHEM and SPY have a monthly-return correlation of 0.73, so combining them can provide real diversification depending on your allocation goals.

What is the holdings overlap between JHEM and SPY?

JHEM and SPY share 2 common holdings with a 0.1% weight overlap. Combined, they hold 1446 unique securities.

Which pays a higher dividend, JHEM or SPY?

JHEM yields 1.78% while SPY yields 1.01%, so JHEM currently pays the higher dividend yield.

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