LSEQ vs SPY
Harbor Long-Short Equity ETF vs State Street SPDR S&P 500 ETF Trust
Quick Verdict
SPY has a lower expense ratio. LSEQ delivered stronger 1-year returns. SPY offers more diversification with 505 holdings.
Side-by-Side Comparison
| Metric | LSEQ | SPY | Winner |
|---|---|---|---|
| Expense Ratio | 2.28% | 0.09% | |
| AUM | $15M | $821.1B | |
| Dividend Yield | 1.79% | 1.01% | |
| Holdings | 155 | 505 | |
| YTD Return | +27.79% | +13.47% | |
| 1Y Return | +31.75% | +20.57% | |
| 3Y Return (annualized) | - | +21.83% | |
| 5Y Return (annualized) | - | +12.88% | |
| Volatility (annualized) | 14.3% | 15.3% | |
| Max Drawdown | -10.9% | -56.5% | |
| Fund Family | Harbor Funds | State Street Investment Management | |
| Category | Equity | Equity | |
| Inception | Dec 3, 2023 | Jan 22, 1993 |
LSEQ vs SPY Performance
Harbor Long-Short Equity ETF (LSEQ) is a ETF from Harbor Funds and State Street SPDR S&P 500 ETF Trust (SPY) is a ETF from State Street Investment Management. Over the past year LSEQ returned +31.75% while SPY returned +20.57%. Year to date, LSEQ is up 27.79% versus a gain of 13.47% for SPY.
Risk: Volatility and Drawdowns
SPY has been the more volatile fund, with annualized monthly volatility of 15.3% compared with 14.3% for LSEQ. 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 -10.9% for LSEQ 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 0.26. They move independently enough that combining them can meaningfully diversify a portfolio.
Fees and Cost Over Time
LSEQ charges 2.28% per year while SPY charges 0.09%. On a $10,000 position that is $228 vs $9 annually, a gap of $219 per year that compounds over a long holding period. On income, LSEQ currently yields 1.79% against 1.01% for SPY.
Holdings Overlap
LSEQ and SPY share 76 holdings out of 582 unique holdings combined, representing a 7.7% weight overlap.
Moderate overlap means holding both could provide meaningful diversification benefits.
Frequently Asked Questions
Which is cheaper, LSEQ or SPY?
LSEQ has an expense ratio of 2.28% while SPY charges 0.09%. SPY is the cheaper option. On a $10,000 investment, that is $219 per year of difference.
Which performed better, LSEQ or SPY?
Over the past year LSEQ returned +31.75% vs +20.57% for SPY, so LSEQ leads on 1-year performance. Over the longest common window we track (3 years), LSEQ annualized +15.85% vs +8.83% for SPY. Past performance does not guarantee future results.
Which is riskier, LSEQ or SPY?
SPY has been the more volatile fund at 15.3% annualized versus 14.3% for LSEQ. Worst drawdown: LSEQ -10.9% vs SPY -56.5%.
Should I hold both LSEQ and SPY?
LSEQ and SPY have a monthly-return correlation of 0.26, so combining them can provide real diversification depending on your allocation goals.
What is the holdings overlap between LSEQ and SPY?
LSEQ and SPY share 76 common holdings with a 7.7% weight overlap. Combined, they hold 582 unique securities.
Which pays a higher dividend, LSEQ or SPY?
LSEQ yields 1.79% while SPY yields 1.01%, so LSEQ currently pays the higher dividend yield.
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