MFDX vs SPY
PIMCO RAFI Dynamic Multi-Factor 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. MFDX offers more diversification with 1,303 holdings.
Side-by-Side Comparison
| Metric | MFDX | SPY | Winner |
|---|---|---|---|
| Expense Ratio | 0.39% | 0.09% | |
| AUM | $451M | $789.1B | |
| Dividend Yield | 2.77% | 1.01% | |
| Holdings | 1,303 | 505 | |
| YTD Return | +12.23% | +14.47% | |
| 1Y Return | +20.86% | +21.96% | |
| 3Y Return (annualized) | +19.04% | +21.70% | |
| 5Y Return (annualized) | +10.54% | +13.30% | |
| Volatility (annualized) | 14.9% | 15.3% | |
| Max Drawdown | -39.1% | -56.5% | |
| Fund Family | PIMCO (US) | State Street Investment Management | |
| Category | Equity | Equity | |
| Inception | Aug 31, 2017 | Jan 22, 1993 |
MFDX vs SPY Performance
PIMCO RAFI Dynamic Multi-Factor International Equity ETF (MFDX) is a ETF from PIMCO (US) and State Street SPDR S&P 500 ETF Trust (SPY) is a ETF from State Street Investment Management. Over the past year MFDX returned +20.86% while SPY returned +21.96%. Year to date, MFDX is up 12.23% versus a gain of 14.47% for SPY.
Over three years, MFDX compounded at +19.04% per year against +21.70% for SPY; over five years the annualized figures are +10.54% and +13.30% respectively. Across the full 9-year window we track, SPY has the edge at +8.87% annualized vs +8.18%. 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 14.9% for MFDX. 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 -39.1% for MFDX 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 0.81. They usually move together, but the gap leaves some room for diversification.
Fees and Cost Over Time
MFDX charges 0.39% per year while SPY charges 0.09%. On a $10,000 position that is $39 vs $9 annually, a gap of $30 per year that compounds over a long holding period. On income, MFDX currently yields 2.77% against 1.01% for SPY.
Holdings Overlap
MFDX and SPY share 7 holdings out of 1607 unique holdings combined, representing a 0.5% weight overlap.
Moderate overlap means holding both could provide meaningful diversification benefits.
Frequently Asked Questions
Which is cheaper, MFDX or SPY?
MFDX has an expense ratio of 0.39% while SPY charges 0.09%. SPY is the cheaper option. On a $10,000 investment, that is $30 per year of difference.
Which performed better, MFDX or SPY?
Over the past year MFDX returned +20.86% vs +21.96% for SPY, so SPY leads on 1-year performance. Over the longest common window we track (9 years), MFDX annualized +8.18% vs +8.87% for SPY. Past performance does not guarantee future results.
Which is riskier, MFDX or SPY?
SPY has been the more volatile fund at 15.3% annualized versus 14.9% for MFDX. Worst drawdown: MFDX -39.1% vs SPY -56.5%.
Should I hold both MFDX and SPY?
MFDX and SPY have a monthly-return correlation of 0.81, so combining them can provide real diversification depending on your allocation goals.
What is the holdings overlap between MFDX and SPY?
MFDX and SPY share 7 common holdings with a 0.5% weight overlap. Combined, they hold 1607 unique securities.
Which pays a higher dividend, MFDX or SPY?
MFDX yields 2.77% while SPY yields 1.01%, so MFDX currently pays the higher dividend yield.
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