MFEM vs SPY
PIMCO RAFI Dynamic Multi-Factor Emerging Markets Equity ETF vs State Street SPDR S&P 500 ETF Trust
Which is better, MFEM or SPY?
Large Cap Value against Large Cap Blend.
SPY has a lower expense ratio. MFEM led over 1Y, SPY over 3Y, 5Y and the full window. MFEM is less concentrated, with 19.6% of the fund in its ten largest positions against 38.9%.
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 | MFEM | SPY |
|---|---|---|
| Expense Ratio | 0.49% | 0.09%Best |
| AUM | $135M | $777.9B |
| Dividend Yield | 2.35% | 1.00% |
| Holdings | 1,362 | 1,011 |
| YTD Return | +12.64%Best | +12.09% |
| 1Y Return | +14.60%Best | +12.45% |
| 3Y Return (annualized) | +17.92% | +21.45%Best |
| 5Y Return (annualized) | +6.70% | +11.87%Best |
| Volatility (annualized) | 17.7% | 16.0%Best |
| Max Drawdown | -45.3% | -34.1%Best |
| $10,000 over 5 years | $13,830 | $17,521Best |
| Top 10 Weight | 19.6%Best | 38.9% |
| Fund Family | PIMCO (US) | State Street Investment Management |
| Category | Equity | Equity |
| Style | Large Cap Value | Large Cap Blend |
| Inception | Aug 31, 2017 | Jan 22, 1993 |
Volatility and max drawdown are measured over the window both funds cover: Sep 6, 2017 to Nov 11, 2026 (9.2 years).
MFEM 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 covers the 9.2 years both funds cover.
MFEM vs SPY Performance
PIMCO RAFI Dynamic Multi-Factor Emerging Markets Equity ETF (MFEM) is an ETF from PIMCO (US) and State Street SPDR S&P 500 ETF Trust (SPY) is an ETF from State Street Investment Management. Over the past year MFEM returned +14.60% while SPY returned +12.45%. Year to date, MFEM is up 12.64% versus a gain of 12.09% for SPY.
Over three years, MFEM compounded at +17.92% per year against +21.45% for SPY; over five years the annualized figures are +6.70% and +11.87% respectively. Across the full 9-year window we track, SPY has the edge at +13.97% annualized vs +5.76%.
Past performance does not guarantee future results.
Risk: Volatility and Drawdowns
MFEM has been the more volatile fund, with annualized monthly volatility of 17.7% compared with 16.0% 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 -45.3% for MFEM 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 0.73. They usually move together, but the gap leaves some room for diversification.
Fees and Cost Over Time
MFEM charges 0.49% per year while SPY charges 0.09%. On a $10,000 position that is $49 vs $9 annually, a gap of $40 per year that compounds over a long holding period. On income, MFEM currently yields 2.35% against 1.00% for SPY.
Holdings Overlap
We hold position weights for 664 holdings in MFEM and 504 in SPY, totalling 98.5% and 100.1% of the two funds. The two books name no position in common, so there is no overlap percentage to show.
0 positions in common, counted across the 664 positions we hold weights for in MFEM and 504 in SPY, against full books of 1,362 and 1,011.
What only one of them owns
Our book lists 499 positions for SPY that do not appear in our book for MFEM (99.7% of the fund), and 16 for MFEM that do not appear in SPY (2.5%).
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.
You are not choosing between two funds in isolation.
Whichever of MFEM 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, MFEM or SPY?
MFEM has an expense ratio of 0.49% while SPY charges 0.09%. SPY is the cheaper option, by $40 a year on a $10,000 investment.
Which performed better, MFEM or SPY?
Over the past year MFEM returned +14.60% vs +12.45% for SPY, so MFEM leads on 1-year performance. Over the longest common window we track (9 years), MFEM annualized +5.76% vs +13.97% for SPY. Past performance does not guarantee future results. This is information, not a recommendation.
Which is riskier, MFEM or SPY?
MFEM has been the more volatile fund at 17.7% annualized versus 16.0% for SPY. Worst drawdown: MFEM -45.3% vs SPY -34.1%.
Should I hold both MFEM and SPY?
MFEM and SPY have a monthly-return correlation of 0.73, so their returns are far enough apart for the mix to behave differently from either one alone. This is information, not a recommendation.
Which pays a higher dividend, MFEM or SPY?
MFEM yields 2.35% while SPY yields 1.00%, so MFEM currently pays the higher dividend yield.
Is SPY better than MFEM?
SPY has a lower expense ratio. MFEM led over 1Y, SPY over 3Y, 5Y and the full window. MFEM is less concentrated, with 19.6% of the fund in its ten largest positions against 38.9%. Which one suits a particular account depends on what it is for. This is information, not a recommendation.