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

MetricLTTISPYWinner
Expense Ratio0.65%0.09%
AUM$15M$789.1B
Dividend Yield9.16%1.01%
Holdings5505
YTD Return-3.44%+13.79%
1Y Return-2.34%+23.66%
3Y Return (annualized)-+21.40%
5Y Return (annualized)-+13.37%
Volatility (annualized)8.0%15.3%
Max Drawdown-9.0%-56.5%
Fund FamilyFirst Trust Portfolios (US)State Street Investment Management
CategoryAlternativeEquity
InceptionFeb 12, 2025Jan 22, 1993

LTTI vs SPY Performance

FT Vest 20+ Year Treasury & Target Income ETF (LTTI) is a ETF from First Trust Portfolios (US) and State Street SPDR S&P 500 ETF Trust (SPY) is a ETF from State Street Investment Management. Over the past year LTTI returned -2.34% while SPY returned +23.66%. Year to date, LTTI is down 3.44% versus a gain of 13.79% for SPY.

Risk: Volatility and Drawdowns

SPY has been the more volatile fund, with annualized monthly volatility of 15.3% compared with 8.0% for LTTI. 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 -9.0% for LTTI 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 0.18. They move independently enough that combining them can meaningfully diversify a portfolio.

Fees and Cost Over Time

LTTI charges 0.65% per year while SPY charges 0.09%. On a $10,000 position that is $65 vs $9 annually, a gap of $56 per year that compounds over a long holding period. On income, LTTI currently yields 9.16% against 1.01% for SPY.

Frequently Asked Questions

Which is cheaper, LTTI or SPY?

LTTI has an expense ratio of 0.65% while SPY charges 0.09%. SPY is the cheaper option. On a $10,000 investment, that is $56 per year of difference.

Which performed better, LTTI or SPY?

Over the past year LTTI returned -2.34% vs +23.66% for SPY, so SPY leads on 1-year performance. Over the longest common window we track (2 years), LTTI annualized -1.14% vs +8.85% for SPY. Past performance does not guarantee future results.

Which is riskier, LTTI or SPY?

SPY has been the more volatile fund at 15.3% annualized versus 8.0% for LTTI. Worst drawdown: LTTI -9.0% vs SPY -56.5%.

Should I hold both LTTI and SPY?

LTTI and SPY have a monthly-return correlation of 0.18, so combining them can provide real diversification depending on your allocation goals.

Which pays a higher dividend, LTTI or SPY?

LTTI yields 9.16% while SPY yields 1.01%, so LTTI currently pays the higher dividend yield.

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