LFAI vs SPY

LFAI vs SPY

Which is better, LFAI or SPY?

Long Term Government Bond against Large Cap Blend.

SPY has a lower expense ratio. SPY led over 1Y and the full window.

Lower Fees: SPYHigher Returns: SPY

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

MetricLFAISPY
Expense Ratio0.25%0.09%Best
AUM$4M$804.7B
Dividend Yield13.53%0.98%
Holdings23505
YTD Return-7.63%+12.09%Best
1Y Return-6.98%+16.29%Best
3Y Return (annualized)-+21.20%
5Y Return (annualized)-+13.37%
Volatility (annualized)6.7%Best12.7%
Max Drawdown-9.7%Best-18.8%
$10,000 over 2 years$9,147$13,844Best
Fund FamilyStone Ridge Asset ManagementState Street Investment Management
CategoryFixed IncomeEquity
StyleLong Term Government BondLarge Cap Blend
InceptionJan 8, 2024Jan 22, 1993

Not shown on this pair: Top 10 Weight.

Volatility and max drawdown, and the $10,000 over 2 years row, are measured over the window both funds cover: Sep 16, 2024 to Sep 18, 2026 (2 years).

LFAI 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 2 years both funds cover.

LFAI vs SPY Performance

LifeX 2050 Longevity Income ETF (LFAI) is an ETF from Stone Ridge Asset Management and State Street SPDR S&P 500 ETF Trust (SPY) is an ETF from State Street Investment Management. Over the past year LFAI returned -6.98% while SPY returned +16.29%. Year to date, LFAI is down 7.63% versus a gain of 12.09% 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 6.7% for LFAI. 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 -9.7% for LFAI 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 0.20. They move largely independently of each other.

Fees and Cost Over Time

LFAI charges 0.25% per year while SPY charges 0.09%. On a $10,000 position that is $25 vs $9 annually, a gap of $16 per year that compounds over a long holding period. On income, LFAI currently yields 13.53% against 0.98% for SPY.

Holdings Overlap

We hold position weights for 18 holdings in LFAI and 504 in SPY, totalling 94.2% and 99.9% of the two funds. The two books name no position in common, so there is no overlap percentage to show.

0 positions in common, counted across the 18 positions we hold weights for in LFAI and 504 in SPY, against full books of 23 and 505.

You are not choosing between two funds in isolation.

Whichever of LFAI and SPY you pick has to sit alongside everything else you own. Add the rest and see what the combination actually holds.

LFAISPY

Free for up to 10 holdings. No account needed.

Frequently Asked Questions

Which is cheaper, LFAI or SPY?

LFAI has an expense ratio of 0.25% while SPY charges 0.09%. SPY is the cheaper option, by $16 a year on a $10,000 investment.

Which performed better, LFAI or SPY?

Over the past year LFAI returned -6.98% vs +16.29% for SPY, so SPY leads on 1-year performance. Over the longest common window we track (2 years), LFAI annualized -4.36% vs +17.66% for SPY. Past performance does not guarantee future results. This is information, not a recommendation.

Which is riskier, LFAI or SPY?

SPY has been the more volatile fund at 12.7% annualized versus 6.7% for LFAI. Worst drawdown: LFAI -9.7% vs SPY -18.8%.

Should I hold both LFAI and SPY?

LFAI and SPY have a monthly-return correlation of 0.20, so their returns are far enough apart for the mix to behave differently from either one alone. This is information, not a recommendation.

Which pays a higher dividend, LFAI or SPY?

LFAI yields 13.53% while SPY yields 0.98%, so LFAI currently pays the higher dividend yield.

Is SPY better than LFAI?

SPY has a lower expense ratio. SPY led over 1Y and the full window. Which one suits a particular account depends on what it is for. This is information, not a recommendation.