MCSE vs SPY
Franklin Sustainable International Equity ETF vs State Street SPDR S&P 500 ETF Trust
Quick Verdict
SPY has a lower expense ratio. SPY delivered stronger 1-year returns. SPY offers more diversification with 505 holdings.
Side-by-Side Comparison
| Metric | MCSE | SPY | Winner |
|---|---|---|---|
| Expense Ratio | 0.59% | 0.09% | |
| AUM | $3M | $821.1B | |
| Dividend Yield | 3.77% | 1.01% | |
| Holdings | 28 | 505 | |
| YTD Return | -0.63% | +14.24% | |
| 1Y Return | +3.20% | +21.71% | |
| 3Y Return (annualized) | +1.38% | +22.10% | |
| 5Y Return (annualized) | - | +13.21% | |
| Volatility (annualized) | 19.2% | 15.3% | |
| Max Drawdown | -25.9% | -56.5% | |
| Fund Family | Franklin Templeton Investments (US) | State Street Investment Management | |
| Category | Equity | Equity | |
| Inception | Oct 31, 2022 | Jan 22, 1993 |
MCSE vs SPY Performance
Franklin Sustainable International Equity ETF (MCSE) is a ETF from Franklin Templeton Investments (US) and State Street SPDR S&P 500 ETF Trust (SPY) is a ETF from State Street Investment Management. Over the past year MCSE returned +3.20% while SPY returned +21.71%. Year to date, MCSE is down 0.63% versus a gain of 14.24% for SPY.
Over three years, MCSE compounded at +1.38% per year against +22.10% for SPY. Across the full 3-year window we track, SPY has the edge at +8.86% annualized vs +6.41%. Past performance does not guarantee future results.
Risk: Volatility and Drawdowns
MCSE has been the more volatile fund, with annualized monthly volatility of 19.2% compared with 15.3% for SPY. 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 -25.9% for MCSE 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 0.74. They usually move together, but the gap leaves some room for diversification.
Fees and Cost Over Time
MCSE charges 0.59% per year while SPY charges 0.09%. On a $10,000 position that is $59 vs $9 annually, a gap of $50 per year that compounds over a long holding period. On income, MCSE currently yields 3.77% against 1.01% for SPY.
Holdings Overlap
MCSE and SPY share 3 holdings out of 527 unique holdings combined, representing a 0.4% weight overlap.
Moderate overlap means holding both could provide meaningful diversification benefits.
Frequently Asked Questions
Which is cheaper, MCSE or SPY?
MCSE has an expense ratio of 0.59% while SPY charges 0.09%. SPY is the cheaper option. On a $10,000 investment, that is $50 per year of difference.
Which performed better, MCSE or SPY?
Over the past year MCSE returned +3.20% vs +21.71% for SPY, so SPY leads on 1-year performance. Over the longest common window we track (3 years), MCSE annualized +6.41% vs +8.86% for SPY. Past performance does not guarantee future results.
Which is riskier, MCSE or SPY?
MCSE has been the more volatile fund at 19.2% annualized versus 15.3% for SPY. Worst drawdown: MCSE -25.9% vs SPY -56.5%.
Should I hold both MCSE and SPY?
MCSE and SPY have a monthly-return correlation of 0.74, so combining them can provide real diversification depending on your allocation goals.
What is the holdings overlap between MCSE and SPY?
MCSE and SPY share 3 common holdings with a 0.4% weight overlap. Combined, they hold 527 unique securities.
Which pays a higher dividend, MCSE or SPY?
MCSE yields 3.77% while SPY yields 1.01%, so MCSE currently pays the higher dividend yield.
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