MDY vs SPY

Quick Verdict

SPY has a lower expense ratio. MDY delivered stronger 1-year returns. SPY offers more diversification with 503 holdings.

Lower Fees: SPYHigher Returns: MDYMore Diversified: SPY

Side-by-Side Comparison

MetricMDYSPYWinner
Expense Ratio0.23%0.09%
AUM$26.7B$789.1B
Dividend Yield1.00%1.01%
Holdings401505
YTD Return+16.56%+13.39%
1Y Return+26.04%+22.52%
3Y Return (annualized)+14.76%+21.36%
5Y Return (annualized)+8.57%+13.19%
Volatility (annualized)17.9%15.3%
Max Drawdown-56.3%-56.5%
Fund FamilySPDR State Street Global AdvisorsState Street Investment Management
CategoryEquityEquity
InceptionMay 4, 1995Jan 22, 1993

MDY vs SPY Performance

State Street SPDR S&P MIDCAP 400 ETF Trust (MDY) is a ETF from SPDR State Street Global Advisors and State Street SPDR S&P 500 ETF Trust (SPY) is a ETF from State Street Investment Management. Over the past year MDY returned +26.04% while SPY returned +22.52%. Year to date, MDY is up 16.56% versus a gain of 13.39% for SPY.

Over three years, MDY compounded at +14.76% per year against +21.36% for SPY; over five years the annualized figures are +8.57% and +13.19% respectively. Across the full 31-year window we track, MDY has the edge at +9.77% annualized vs +8.84%. Past performance does not guarantee future results.

Risk: Volatility and Drawdowns

MDY has been the more volatile fund, with annualized monthly volatility of 17.9% 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 -56.3% for MDY 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 0.90. They move almost in lockstep, so holding both mostly duplicates the same exposure.

Fees and Cost Over Time

MDY charges 0.23% per year while SPY charges 0.09%. On a $10,000 position that is $23 vs $9 annually, a gap of $14 per year that compounds over a long holding period. On income, MDY currently yields 1.00% against 1.01% for SPY.

Holdings Overlap

0.0%overlap

MDY and SPY share 0 holdings out of 901 unique holdings combined, representing a 0.0% weight overlap.

Moderate overlap means holding both could provide meaningful diversification benefits.

Frequently Asked Questions

Which is cheaper, MDY or SPY?

MDY has an expense ratio of 0.23% while SPY charges 0.09%. SPY is the cheaper option. On a $10,000 investment, that is $14 per year of difference.

Which performed better, MDY or SPY?

Over the past year MDY returned +26.04% vs +22.52% for SPY, so MDY leads on 1-year performance. Over the longest common window we track (31 years), MDY annualized +9.77% vs +8.84% for SPY. Past performance does not guarantee future results.

Which is riskier, MDY or SPY?

MDY has been the more volatile fund at 17.9% annualized versus 15.3% for SPY. Worst drawdown: MDY -56.3% vs SPY -56.5%.

Should I hold both MDY and SPY?

MDY and SPY have a monthly-return correlation of 0.90, so they move almost identically. Holding both adds little diversification - most investors pick one, usually on fees or the specific index tracked.

What is the holdings overlap between MDY and SPY?

MDY and SPY share 0 common holdings with a 0.0% weight overlap. Combined, they hold 901 unique securities.

Which pays a higher dividend, MDY or SPY?

MDY yields 1.00% while SPY yields 1.01%, so SPY currently pays the higher dividend yield.

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