MKTN vs SPY

MKTN vs SPY

Which is better, MKTN or SPY?

Market Neutral Strategy against Large Cap Blend.

SPY has a lower expense ratio. SPY led over 1Y.

Lower Fees: SPYHigher Returns (1Y): SPY

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

MetricMKTNSPY
Expense Ratio1.94%0.09%Best
AUM$128M$804.7B
Dividend Yield0.48%0.98%
Holdings387505
YTD Return+9.06%+11.52%Best
1Y Return+12.19%+17.48%Best
3Y Return (annualized)-+20.62%
5Y Return (annualized)-+12.73%
Volatility (annualized)5.8%Best13.3%
Fund FamilyFederated HermesState Street Investment Management
CategoryAlternativeEquity
StyleMarket Neutral StrategyLarge Cap Blend
InceptionSep 24, 2025Jan 22, 1993

Not shown on this pair: Max Drawdown, $10,000 over the window, Top 10 Weight.

MKTN 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 is available from the range buttons; it is not the opening view here because over the whole period one of these two funds moves so much further than the other that its line would sit flat on the axis.

MKTN vs SPY Performance

Federated Hermes MDT Market Neutral ETF (MKTN) is an ETF from Federated Hermes and State Street SPDR S&P 500 ETF Trust (SPY) is an ETF from State Street Investment Management. Over the past year MKTN returned +12.19% while SPY returned +17.48%. Year to date, MKTN is up 9.06% versus a gain of 11.52% for SPY.

Past performance does not guarantee future results.

Risk: Volatility and Drawdowns

SPY has been the more volatile fund, with annualized monthly volatility of 13.3% compared with 5.8% for MKTN. Lower volatility generally means a smoother ride, though it often comes with lower long-run returns.

The two funds' monthly returns correlate at -0.35. They move together some of the time, and apart the rest.

Fees and Cost Over Time

MKTN charges 1.94% per year while SPY charges 0.09%. On a $10,000 position that is $194 vs $9 annually, a gap of $185 per year that compounds over a long holding period. On income, MKTN currently yields 0.48% against 0.98% for SPY.

Holdings Overlap

SPY already in MKTN42.8%

At least 42.8% of SPY's money is in holdings MKTN also owns.

Stated as a floor: for MKTN, our book for it covers 94.8% of that fund, so a holding it does not list is one we cannot count as shared. The real figure is this or higher.

The two portfolios partly overlap.

181 positions in common, counted across the 404 positions we hold weights for in MKTN and 504 in SPY, against full books of 387 and 505.

Top Shared Holdings

StockWeight in MKTNWeight in SPYDifference
NVDANvidia Corp.0.90%7.71%6.81%
MSFTMicrosoft Corp 4.100 Feb 06 370.05%5.50%5.45%
GOOGLAlphabet A Usd 0.0011.09%3.33%2.24%
ABBVAbbvie Inc.2.38%0.65%1.73%
GEGeneral Electric Co.2.41%0.59%1.82%
CRWDCrowdstrike Holdings Inc. Class A2.30%0.32%1.98%
FISVFiserv Inc.2.56%0.04%2.52%
GEVGE Vernova, LLC2.09%0.41%1.68%
TRVTravelers Cos., Inc.2.33%0.12%2.21%
INTUIntuit, Inc.2.29%0.13%2.16%

42.8% of SPY is already inside MKTN.

You probably hold more than these two. Add the rest and see how much of the whole book is the same companies twice.

MKTNSPY

Free for up to 10 holdings. No account needed.

Frequently Asked Questions

Which is cheaper, MKTN or SPY?

MKTN has an expense ratio of 1.94% while SPY charges 0.09%. SPY is the cheaper option, by $185 a year on a $10,000 investment.

Which performed better, MKTN or SPY?

Over the past year MKTN returned +12.19% vs +17.48% for SPY, so SPY leads on 1-year performance. Past performance does not guarantee future results. This is information, not a recommendation.

Which is riskier, MKTN or SPY?

SPY has been the more volatile fund at 13.3% annualized versus 5.8% for MKTN.

Should I hold both MKTN and SPY?

MKTN and SPY have a monthly-return correlation of -0.35, so their returns are far enough apart for the mix to behave differently from either one alone. This is information, not a recommendation.

What is the holdings overlap between MKTN and SPY?

At least 42.8% of SPY's money is in holdings MKTN also owns. Our book for MKTN is partial, so the real figure is this or higher. They hold 181 positions in common, counted across the 404 positions we hold weights for in MKTN and 504 in SPY.

Which pays a higher dividend, MKTN or SPY?

MKTN yields 0.48% while SPY yields 0.98%, so SPY currently pays the higher dividend yield.

Is SPY better than MKTN?

SPY has a lower expense ratio. SPY led over 1Y. Which one suits a particular account depends on what it is for. This is information, not a recommendation.