MFEM vs SPY
PIMCO RAFI Dynamic Multi-Factor Emerging Markets Equity ETF vs State Street SPDR S&P 500 ETF Trust
Quick Verdict
SPY has a lower expense ratio. MFEM delivered stronger 1-year returns. MFEM offers more diversification with 701 holdings.
Side-by-Side Comparison
| Metric | MFEM | SPY | Winner |
|---|---|---|---|
| Expense Ratio | 0.49% | 0.09% | |
| AUM | $156M | $821.1B | |
| Dividend Yield | 2.39% | 1.01% | |
| Holdings | 701 | 505 | |
| YTD Return | +21.80% | +12.68% | |
| 1Y Return | +33.81% | +21.82% | |
| 3Y Return (annualized) | +20.43% | +21.98% | |
| 5Y Return (annualized) | +8.97% | +12.89% | |
| Volatility (annualized) | 17.7% | 15.3% | |
| Max Drawdown | -45.3% | -56.5% | |
| Fund Family | PIMCO (US) | State Street Investment Management | |
| Category | Equity | Equity | |
| Inception | Aug 31, 2017 | Jan 22, 1993 |
MFEM vs SPY Performance
PIMCO RAFI Dynamic Multi-Factor Emerging Markets Equity ETF (MFEM) 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 MFEM returned +33.81% while SPY returned +21.82%. Year to date, MFEM is up 21.80% versus a gain of 12.68% for SPY.
Over three years, MFEM compounded at +20.43% per year against +21.98% for SPY; over five years the annualized figures are +8.97% and +12.89% respectively. Across the full 9-year window we track, SPY has the edge at +8.81% annualized vs +6.84%. 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 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 -45.3% for MFEM 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 0.73. 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 2.39% against 1.01% for SPY.
Holdings Overlap
MFEM and SPY share 0 holdings out of 1007 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, MFEM or SPY?
MFEM has an expense ratio of 0.49% while SPY charges 0.09%. SPY is the cheaper option. On a $10,000 investment, that is $40 per year of difference.
Which performed better, MFEM or SPY?
Over the past year MFEM returned +33.81% vs +21.82% for SPY, so MFEM leads on 1-year performance. Over the longest common window we track (9 years), MFEM annualized +6.84% vs +8.81% for SPY. Past performance does not guarantee future results.
Which is riskier, MFEM or SPY?
MFEM has been the more volatile fund at 17.7% annualized versus 15.3% for SPY. Worst drawdown: MFEM -45.3% vs SPY -56.5%.
Should I hold both MFEM and SPY?
MFEM and SPY have a monthly-return correlation of 0.73, so combining them can provide real diversification depending on your allocation goals.
What is the holdings overlap between MFEM and SPY?
MFEM and SPY share 0 common holdings with a 0.0% weight overlap. Combined, they hold 1007 unique securities.
Which pays a higher dividend, MFEM or SPY?
MFEM yields 2.39% while SPY yields 1.01%, so MFEM currently pays the higher dividend yield.
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