JOF vs SPY
Japan Smaller Capitalization Fund Inc vs State Street SPDR S&P 500 ETF Trust
Quick Verdict
SPY has a lower expense ratio. JOF delivered stronger 1-year returns. SPY offers more diversification with 505 holdings.
Side-by-Side Comparison
| Metric | JOF | SPY | Winner |
|---|---|---|---|
| Expense Ratio | 1.47% | 0.09% | |
| AUM | $240M | $821.1B | |
| Dividend Yield | 15.92% | 1.01% | |
| Holdings | 91 | 505 | |
| YTD Return | +20.79% | +13.47% | |
| 1Y Return | +32.99% | +20.57% | |
| 3Y Return (annualized) | +28.16% | +21.83% | |
| 5Y Return (annualized) | +12.77% | +12.88% | |
| Volatility (annualized) | 26.5% | 15.3% | |
| Max Drawdown | -70.0% | -56.5% | |
| Fund Family | Nomura Asset Management Co Ltd | State Street Investment Management | |
| Category | Equity | Equity | |
| Inception | Mar 21, 1990 | Jan 22, 1993 |
JOF vs SPY Performance
Japan Smaller Capitalization Fund Inc (JOF) is a ETF from Nomura Asset Management Co Ltd and State Street SPDR S&P 500 ETF Trust (SPY) is a ETF from State Street Investment Management. Over the past year JOF returned +32.99% while SPY returned +20.57%. Year to date, JOF is up 20.79% versus a gain of 13.47% for SPY.
Over three years, JOF compounded at +28.16% per year against +21.83% for SPY; over five years the annualized figures are +12.77% and +12.88% respectively. Across the full 31-year window we track, SPY has the edge at +8.83% annualized vs +1.91%. Past performance does not guarantee future results.
Risk: Volatility and Drawdowns
JOF has been the more volatile fund, with annualized monthly volatility of 26.5% 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 -70.0% for JOF 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 0.48. They move independently enough that combining them can meaningfully diversify a portfolio.
Fees and Cost Over Time
JOF charges 1.47% per year while SPY charges 0.09%. On a $10,000 position that is $147 vs $9 annually, a gap of $138 per year that compounds over a long holding period. On income, JOF currently yields 15.92% against 1.01% for SPY.
Holdings Overlap
JOF and SPY share 0 holdings out of 595 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, JOF or SPY?
JOF has an expense ratio of 1.47% while SPY charges 0.09%. SPY is the cheaper option. On a $10,000 investment, that is $138 per year of difference.
Which performed better, JOF or SPY?
Over the past year JOF returned +32.99% vs +20.57% for SPY, so JOF leads on 1-year performance. Over the longest common window we track (31 years), JOF annualized +1.91% vs +8.83% for SPY. Past performance does not guarantee future results.
Which is riskier, JOF or SPY?
JOF has been the more volatile fund at 26.5% annualized versus 15.3% for SPY. Worst drawdown: JOF -70.0% vs SPY -56.5%.
Should I hold both JOF and SPY?
JOF and SPY have a monthly-return correlation of 0.48, so combining them can provide real diversification depending on your allocation goals.
What is the holdings overlap between JOF and SPY?
JOF and SPY share 0 common holdings with a 0.0% weight overlap. Combined, they hold 595 unique securities.
Which pays a higher dividend, JOF or SPY?
JOF yields 15.92% while SPY yields 1.01%, so JOF currently pays the higher dividend yield.
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