MDIV vs SPY
First Trust Multi-Asset Diversified Income Index Fund 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 | MDIV | SPY | Winner |
|---|---|---|---|
| Expense Ratio | 0.71% | 0.09% | |
| AUM | $433M | $814.4B | |
| Dividend Yield | 6.50% | 1.01% | |
| Holdings | 125 | 505 | |
| YTD Return | +10.52% | +12.87% | |
| 1Y Return | +9.54% | +21.13% | |
| 3Y Return (annualized) | +10.37% | +20.86% | |
| 5Y Return (annualized) | +6.51% | +12.69% | |
| Volatility (annualized) | 13.6% | 15.3% | |
| Max Drawdown | -57.0% | -56.5% | |
| Fund Family | First Trust Portfolios (US) | State Street Investment Management | |
| Category | Allocation/Balanced | Equity | |
| Inception | Aug 13, 2012 | Jan 22, 1993 |
MDIV vs SPY Performance
First Trust Multi-Asset Diversified Income Index Fund (MDIV) 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 MDIV returned +9.54% while SPY returned +21.13%. Year to date, MDIV is up 10.52% versus a gain of 12.87% for SPY.
Over three years, MDIV compounded at +10.37% per year against +20.86% for SPY; over five years the annualized figures are +6.51% and +12.69% respectively. Across the full 14-year window we track, SPY has the edge at +8.80% annualized vs +1.12%. 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 13.6% 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 -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 0.77. 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 6.50% against 1.01% for SPY.
Holdings Overlap
MDIV and SPY share 33 holdings out of 593 unique holdings combined, representing a 3.1% weight overlap.
Moderate overlap means holding both could provide meaningful diversification benefits.
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. On a $10,000 investment, that is $62 per year of difference.
Which performed better, MDIV or SPY?
Over the past year MDIV returned +9.54% vs +21.13% for SPY, so SPY leads on 1-year performance. Over the longest common window we track (14 years), MDIV annualized +1.12% vs +8.80% for SPY. Past performance does not guarantee future results.
Which is riskier, MDIV or SPY?
SPY has been the more volatile fund at 15.3% annualized versus 13.6% for MDIV. Worst drawdown: MDIV -57.0% vs SPY -56.5%.
Should I hold both MDIV and SPY?
MDIV and SPY have a monthly-return correlation of 0.77, so combining them can provide real diversification depending on your allocation goals.
What is the holdings overlap between MDIV and SPY?
MDIV and SPY share 33 common holdings with a 3.1% weight overlap. Combined, they hold 593 unique securities.
Which pays a higher dividend, MDIV or SPY?
MDIV yields 6.50% while SPY yields 1.01%, so MDIV currently pays the higher dividend yield.
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