LSST vs SPY

Quick Verdict

SPY has a lower expense ratio. SPY delivered stronger 1-year returns. SPY offers more diversification with 503 holdings.

Lower Fees: SPYHigher Returns: SPYMore Diversified: SPY

Side-by-Side Comparison

MetricLSSTSPYWinner
Expense Ratio0.35%0.09%
AUM$15M$789.1B
Dividend Yield4.59%1.01%
Holdings235505
YTD Return+4.89%+13.39%
1Y Return+7.37%+22.52%
3Y Return (annualized)+2.14%+21.36%
5Y Return (annualized)+2.47%+13.19%
Volatility (annualized)2.4%15.3%
Max Drawdown-6.2%-56.5%
Fund FamilyNatixis FundsState Street Investment Management
CategoryFixed IncomeEquity
InceptionDec 27, 2017Jan 22, 1993

LSST vs SPY Performance

Natixis Loomis Sayles Short Duration Income ETF (LSST) is a ETF from Natixis Funds and State Street SPDR S&P 500 ETF Trust (SPY) is a ETF from State Street Investment Management. Over the past year LSST returned +7.37% while SPY returned +22.52%. Year to date, LSST is up 4.89% versus a gain of 13.39% for SPY.

Over three years, LSST compounded at +2.14% per year against +21.36% for SPY; over five years the annualized figures are +2.47% and +13.19% respectively. Across the full 7-year window we track, SPY has the edge at +8.84% annualized vs +2.64%. Past performance does not guarantee future results.

Risk: Volatility and Drawdowns

SPY has been the more volatile fund, with annualized monthly volatility of 15.3% compared with 2.4% for LSST. 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 -6.2% for LSST 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 0.55. They move independently enough that combining them can meaningfully diversify a portfolio.

Fees and Cost Over Time

LSST charges 0.35% per year while SPY charges 0.09%. On a $10,000 position that is $35 vs $9 annually, a gap of $26 per year that compounds over a long holding period. On income, LSST currently yields 4.59% against 1.01% for SPY.

Frequently Asked Questions

Which is cheaper, LSST or SPY?

LSST has an expense ratio of 0.35% while SPY charges 0.09%. SPY is the cheaper option. On a $10,000 investment, that is $26 per year of difference.

Which performed better, LSST or SPY?

Over the past year LSST returned +7.37% vs +22.52% for SPY, so SPY leads on 1-year performance. Over the longest common window we track (7 years), LSST annualized +2.64% vs +8.84% for SPY. Past performance does not guarantee future results.

Which is riskier, LSST or SPY?

SPY has been the more volatile fund at 15.3% annualized versus 2.4% for LSST. Worst drawdown: LSST -6.2% vs SPY -56.5%.

Should I hold both LSST and SPY?

LSST and SPY have a monthly-return correlation of 0.55, so combining them can provide real diversification depending on your allocation goals.

Which pays a higher dividend, LSST or SPY?

LSST yields 4.59% while SPY yields 1.01%, so LSST currently pays the higher dividend yield.

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