MMTM vs SPY

Quick Verdict

SPY has a lower expense ratio. SPY delivered stronger 1-year returns. MMTM offers more diversification with 1482 holdings.

Lower Fees: SPYHigher Returns: SPYMore Diversified: MMTM

Side-by-Side Comparison

MetricMMTMSPYWinner
Expense Ratio0.12%0.09%
AUM$159M$789.1B
Dividend Yield0.86%1.01%
Holdings1,488505
YTD Return+5.75%+13.79%
1Y Return+14.14%+23.66%
3Y Return (annualized)+19.05%+21.40%
5Y Return (annualized)+11.72%+13.37%
Volatility (annualized)14.5%15.3%
Max Drawdown-34.2%-56.5%
Fund FamilyState Street Investment ManagementState Street Investment Management
CategoryEquityEquity
InceptionOct 24, 2012Jan 22, 1993

MMTM vs SPY Performance

State Street SPDR S&P 1500 Momentum Tilt ETF (MMTM) is a ETF from State Street Investment Management and State Street SPDR S&P 500 ETF Trust (SPY) is a ETF from State Street Investment Management. Over the past year MMTM returned +14.14% while SPY returned +23.66%. Year to date, MMTM is up 5.75% versus a gain of 13.79% for SPY.

Over three years, MMTM compounded at +19.05% per year against +21.40% for SPY; over five years the annualized figures are +11.72% and +13.37% respectively. Across the full 14-year window we track, MMTM has the edge at +13.12% annualized vs +8.85%. 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 14.5% for MMTM. 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 -34.2% for MMTM 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 0.96. They move almost in lockstep, so holding both mostly duplicates the same exposure.

Fees and Cost Over Time

MMTM charges 0.12% per year while SPY charges 0.09%. On a $10,000 position that is $12 vs $9 annually, a gap of $3 per year that compounds over a long holding period. On income, MMTM currently yields 0.86% against 1.01% for SPY.

Holdings Overlap

69.4%overlap

MMTM and SPY share 492 holdings out of 1493 unique holdings combined, representing a 69.4% weight overlap.

High overlap means holding both may not provide much additional diversification.

Top Shared Holdings

StockWeight in MMTMWeight in SPYDifference
AAPL6.46%7.09%0.63%
MSFT7.72%4.43%3.29%
NVDA3.37%7.31%3.94%
AMZNProProPro
METAProProPro
GOOGLProProPro
AVGOProProPro
BRK.BProProPro
GOOGProProPro
LLYProProPro
See all 10 holdings MMTM shares with SPY
Exact weights in each fund and the difference, for every overlapping position.
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Frequently Asked Questions

Which is cheaper, MMTM or SPY?

MMTM has an expense ratio of 0.12% while SPY charges 0.09%. SPY is the cheaper option. On a $10,000 investment, that is $3 per year of difference.

Which performed better, MMTM or SPY?

Over the past year MMTM returned +14.14% vs +23.66% for SPY, so SPY leads on 1-year performance. Over the longest common window we track (14 years), MMTM annualized +13.12% vs +8.85% for SPY. Past performance does not guarantee future results.

Which is riskier, MMTM or SPY?

SPY has been the more volatile fund at 15.3% annualized versus 14.5% for MMTM. Worst drawdown: MMTM -34.2% vs SPY -56.5%.

Should I hold both MMTM and SPY?

MMTM and SPY have a monthly-return correlation of 0.96, so they move almost identically. Holding both adds little diversification - most investors pick one, usually on fees or the specific index tracked.

What is the holdings overlap between MMTM and SPY?

MMTM and SPY share 492 common holdings with a 69.4% weight overlap. Combined, they hold 1493 unique securities.

Which pays a higher dividend, MMTM or SPY?

MMTM yields 0.86% while SPY yields 1.01%, so SPY currently pays the higher dividend yield.

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