MBSF 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

MetricMBSFSPYWinner
Expense Ratio0.49%0.09%
AUM$235M$789.1B
Dividend Yield4.47%1.01%
Holdings388505
YTD Return+2.27%+13.39%
1Y Return+5.00%+22.52%
3Y Return (annualized)-+21.36%
5Y Return (annualized)-+13.19%
Volatility (annualized)1.4%15.3%
Max Drawdown-1.0%-56.5%
Fund FamilyRegan CapitalState Street Investment Management
CategoryFixed IncomeEquity
InceptionFeb 27, 2024Jan 22, 1993

MBSF vs SPY Performance

REGAN FLOATING RATE MBS ETF (MBSF) is a ETF from Regan Capital and State Street SPDR S&P 500 ETF Trust (SPY) is a ETF from State Street Investment Management. Over the past year MBSF returned +5.00% while SPY returned +22.52%. Year to date, MBSF is up 2.27% versus a gain of 13.39% for SPY.

Risk: Volatility and Drawdowns

SPY has been the more volatile fund, with annualized monthly volatility of 15.3% compared with 1.4% for MBSF. 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 -1.0% for MBSF 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 0.34. They move independently enough that combining them can meaningfully diversify a portfolio.

Fees and Cost Over Time

MBSF charges 0.49% per year while SPY charges 0.09%. On a $10,000 position that is $49 vs $9 annually, a gap of $40 per year that compounds over a long holding period. On income, MBSF currently yields 4.47% against 1.01% for SPY.

Frequently Asked Questions

Which is cheaper, MBSF or SPY?

MBSF has an expense ratio of 0.49% while SPY charges 0.09%. SPY is the cheaper option. On a $10,000 investment, that is $40 per year of difference.

Which performed better, MBSF or SPY?

Over the past year MBSF returned +5.00% vs +22.52% for SPY, so SPY leads on 1-year performance. Over the longest common window we track (3 years), MBSF annualized +5.70% vs +8.84% for SPY. Past performance does not guarantee future results.

Which is riskier, MBSF or SPY?

SPY has been the more volatile fund at 15.3% annualized versus 1.4% for MBSF. Worst drawdown: MBSF -1.0% vs SPY -56.5%.

Should I hold both MBSF and SPY?

MBSF and SPY have a monthly-return correlation of 0.34, so combining them can provide real diversification depending on your allocation goals.

Which pays a higher dividend, MBSF or SPY?

MBSF yields 4.47% while SPY yields 1.01%, so MBSF currently pays the higher dividend yield.

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