MDIV vs SPY
First Trust Multi-Asset Diversified Income Index Fund vs State Street SPDR S&P 500 ETF Trust
Which is better, MDIV or SPY?
Equity-oriented Balanced against Large Cap Blend.
SPY has a lower expense ratio. SPY led over 1Y, 3Y, 5Y and the full window. MDIV is less concentrated, with 32.6% of the fund in its ten largest positions against 37.8%.
MarketXLS is not an investment adviser. This comparison is generated automatically from market data and is for information only. A Best mark means the better reading on that one measure, not a recommendation to buy.
Side-by-Side Comparison
| Metric | MDIV | SPY |
|---|---|---|
| Expense Ratio | 0.71% | 0.09%Best |
| AUM | $431M | $804.7B |
| Dividend Yield | 6.60% | 0.98% |
| Holdings | 125 | 505 |
| YTD Return | +8.54% | +13.81%Best |
| 1Y Return | +8.13% | +16.94%Best |
| 3Y Return (annualized) | +10.39% | +22.84%Best |
| 5Y Return (annualized) | +6.46% | +13.50%Best |
| Volatility (annualized) | 13.5%Best | 14.1% |
| Max Drawdown | -57.0% | -34.1%Best |
| $10,000 over 5 years | $13,675 | $18,836Best |
| Top 10 Weight | 32.6%Best | 37.8% |
| Fund Family | First Trust Portfolios (US) | State Street Investment Management |
| Category | Allocation/Balanced | Equity |
| Style | Equity-oriented Balanced | Large Cap Blend |
| Inception | Aug 13, 2012 | Jan 22, 1993 |
Volatility and max drawdown are measured over the window both funds cover: Aug 14, 2012 to Sep 22, 2026 (14.1 years).
MDIV vs SPY growth
Month-end closes. Both lines start at 0% in the first month shown, so the gap between them is the difference in growth across that window. The full view is available from the range buttons; it is not the opening view here because over the whole period one of these two funds moves so much further than the other that its line would sit flat on the axis.
MDIV vs SPY Performance
First Trust Multi-Asset Diversified Income Index Fund (MDIV) is an ETF from First Trust Portfolios (US) and State Street SPDR S&P 500 ETF Trust (SPY) is an ETF from State Street Investment Management. Over the past year MDIV returned +8.13% while SPY returned +16.94%. Year to date, MDIV is up 8.54% versus a gain of 13.81% for SPY.
Over three years, MDIV compounded at +10.39% per year against +22.84% for SPY; over five years the annualized figures are +6.46% and +13.50% respectively. Across the full 14-year window we track, SPY has the edge at +13.43% annualized vs +0.98%.
Past performance does not guarantee future results.
Risk: Volatility and Drawdowns
SPY has been the more volatile fund, with annualized monthly volatility of 14.1% compared with 13.5% for MDIV. 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 -57.0% for MDIV and -34.1% for SPY. Drawdown depth is what each fund did in the worst stretch of the window measured above.
The two funds' monthly returns correlate at 0.77. They usually move together, but the gap leaves some room for diversification.
Fees and Cost Over Time
MDIV charges 0.71% per year while SPY charges 0.09%. On a $10,000 position that is $71 vs $9 annually, a gap of $62 per year that compounds over a long holding period. On income, MDIV currently yields 6.60% against 0.98% for SPY.
Holdings Overlap
14.8% of MDIV's money is in holdings SPY also owns. 3.3% of SPY's money is in holdings MDIV also owns.
MDIV and SPY share little of their money.
33 positions in common, counted across the 123 positions we hold weights for in MDIV and 504 in SPY, against full books of 125 and 505.
What only one of them owns
Our book lists 464 positions for SPY that do not appear in our book for MDIV (96.0% of the fund), and 89 for MDIV that do not appear in SPY (84.7%).
Some of those will be the same company recorded under a different code in one of the two books, so the real difference in what you would own is no larger than this and may be smaller. We do not name the individual positions here for that reason.
Top Shared Holdings
| Stock | Weight in MDIV | Weight in SPY | Difference |
|---|---|---|---|
| PFEPfizer Inc | 0.63% | 0.25% | 0.38% |
| VZVerizon Communic | 0.54% | 0.32% | 0.22% |
| GISGeneral Mills In | 0.76% | 0.03% | 0.73% |
| PMPhilip Morris International Inc. | 0.33% | 0.44% | 0.11% |
| KHCKraft Heinz Co. | 0.68% | 0.03% | 0.65% |
| VICIVici Properties Inc | 0.65% | 0.04% | 0.61% |
| MOAltria Group Inc | 0.51% | 0.18% | 0.33% |
| TBBAt&t Inc | 0.40% | 0.27% | 0.13% |
| BMYBristol-Myers Squibb Co. | 0.43% | 0.21% | 0.22% |
| PRUPrudential Financial Inc | 0.58% | 0.06% | 0.52% |
You are not choosing between two funds in isolation.
Whichever of MDIV and SPY you pick has to sit alongside everything else you own. Add the rest and see what the combination actually holds.
Free for up to 10 holdings. No account needed.
Frequently Asked Questions
Which is cheaper, MDIV or SPY?
MDIV has an expense ratio of 0.71% while SPY charges 0.09%. SPY is the cheaper option, by $62 a year on a $10,000 investment.
Which performed better, MDIV or SPY?
Over the past year MDIV returned +8.13% vs +16.94% for SPY, so SPY leads on 1-year performance. Over the longest common window we track (14 years), MDIV annualized +0.98% vs +13.43% for SPY. Past performance does not guarantee future results. This is information, not a recommendation.
Which is riskier, MDIV or SPY?
SPY has been the more volatile fund at 14.1% annualized versus 13.5% for MDIV. Worst drawdown: MDIV -57.0% vs SPY -34.1%.
Should I hold both MDIV and SPY?
MDIV and SPY have a monthly-return correlation of 0.77, so their returns are far enough apart for the mix to behave differently from either one alone. This is information, not a recommendation.
What is the holdings overlap between MDIV and SPY?
14.8% of MDIV's money is in holdings SPY also owns. 3.3% of SPY's is in holdings MDIV also owns. They hold 33 positions in common, counted across the 123 positions we hold weights for in MDIV and 504 in SPY.
Which pays a higher dividend, MDIV or SPY?
MDIV yields 6.60% while SPY yields 0.98%, so MDIV currently pays the higher dividend yield.
Is SPY better than MDIV?
SPY has a lower expense ratio. SPY led over 1Y, 3Y, 5Y and the full window. MDIV is less concentrated, with 32.6% of the fund in its ten largest positions against 37.8%. Which one suits a particular account depends on what it is for. This is information, not a recommendation.