MMSC vs SPY
First Trust Multi-Manager Small Cap Opportunities ETF vs State Street SPDR S&P 500 ETF Trust
Which is better, MMSC or SPY?
Small Cap Growth against Large Cap Blend.
SPY has a lower expense ratio. MMSC led over 1Y, SPY over 3Y, 5Y and the full window. MMSC is less concentrated, with 14.7% of the fund in its ten largest positions against 37.1%.
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 | MMSC | SPY |
|---|---|---|
| Expense Ratio | 0.95% | 0.09%Best |
| AUM | $51M | $797.9B |
| Dividend Yield | 0.00% | 1.00% |
| Holdings | 201 | 504 |
| YTD Return | +7.37% | +11.28%Best |
| 1Y Return | +14.86%Best | +13.46% |
| 3Y Return (annualized) | +19.26% | +20.37%Best |
| 5Y Return (annualized) | +3.47% | +11.54%Best |
| Volatility (annualized) | 21.0% | 15.3%Best |
| Max Drawdown | -40.8% | -24.5%Best |
| $10,000 over 5 years | $11,860 | $17,264Best |
| Top 10 Weight | 14.7%Best | 37.1% |
| Fund Family | First Trust Portfolios (US) | State Street Investment Management |
| Category | Equity | Equity |
| Style | Small Cap Growth | Large Cap Blend |
| Inception | Oct 13, 2021 | Jan 22, 1993 |
Volatility and max drawdown are measured over the window both funds cover: Oct 14, 2021 to Nov 13, 2026 (5.1 years).
MMSC 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 5.1 years both funds cover.
MMSC vs SPY Performance
First Trust Multi-Manager Small Cap Opportunities ETF (MMSC) is an ETF from First Trust Portfolios (US) and State Street SPDR S&P 500 ETF Trust (SPY) is an ETF from State Street Investment Management. Over the past year MMSC returned +14.86% while SPY returned +13.46%. Year to date, MMSC is up 7.37% versus a gain of 11.28% for SPY.
Over three years, MMSC compounded at +19.26% per year against +20.37% for SPY; over five years the annualized figures are +3.47% and +11.54% respectively.
Past performance does not guarantee future results.
Risk: Volatility and Drawdowns
MMSC has been the more volatile fund, with annualized monthly volatility of 21.0% 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 -40.8% for MMSC and -24.5% 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 0.85. They usually move together, but the gap leaves some room for diversification.
Fees and Cost Over Time
MMSC charges 0.95% per year while SPY charges 0.09%. On a $10,000 position that is $95 vs $9 annually, a gap of $86 per year that compounds over a long holding period. On income, MMSC currently yields 0.00% against 1.00% for SPY.
Holdings Overlap
0.4% of MMSC's money is in holdings SPY also owns. 0.1% of SPY's money is in holdings MMSC also owns.
We cannot see either book well enough to say how much of this pair is duplicated.
2 positions in common, counted across the 200 positions we hold weights for in MMSC and 502 in SPY, against full books of 201 and 504.
What only one of them owns
Our book lists 498 positions for SPY that do not appear in our book for MMSC (99.6% of the fund), and 186 for MMSC that do not appear in SPY (95.2%).
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 MMSC 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, MMSC or SPY?
MMSC has an expense ratio of 0.95% while SPY charges 0.09%. SPY is the cheaper option, by $86 a year on a $10,000 investment.
Which performed better, MMSC or SPY?
Over the past year MMSC returned +14.86% vs +13.46% for SPY, so MMSC leads on 1-year performance. Past performance does not guarantee future results. This is information, not a recommendation.
Which is riskier, MMSC or SPY?
MMSC has been the more volatile fund at 21.0% annualized versus 15.3% for SPY. Worst drawdown: MMSC -40.8% vs SPY -24.5%.
Should I hold both MMSC and SPY?
MMSC and SPY have a monthly-return correlation of 0.85, 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, MMSC or SPY?
MMSC yields 0.00% while SPY yields 1.00%, so SPY currently pays the higher dividend yield.
Is SPY better than MMSC?
SPY has a lower expense ratio. MMSC led over 1Y, SPY over 3Y, 5Y and the full window. MMSC is less concentrated, with 14.7% of the fund in its ten largest positions against 37.1%. Which one suits a particular account depends on what it is for. This is information, not a recommendation.