MSD vs SPY
Morgan Stanley Emerging Markets Debt Fund Inc. vs State Street SPDR S&P 500 ETF Trust
Which is better, MSD or SPY?
Emerging Markets Bond against Large Cap Blend.
SPY has a lower expense ratio. SPY led over 1Y, 3Y, 5Y and the full window.
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 | MSD | SPY |
|---|---|---|
| Expense Ratio | 1.19% | 0.09%Best |
| AUM | - | $804.7B |
| Dividend Yield | 7.67% | 0.98% |
| Holdings | 358 | 505 |
| YTD Return | +1.37% | +12.47%Best |
| 1Y Return | +3.67% | +17.51%Best |
| 3Y Return (annualized) | +13.85% | +21.18%Best |
| 5Y Return (annualized) | +3.52% | +12.88%Best |
| Volatility (annualized) | 18.3% | 15.3%Best |
| Max Drawdown | -66.0% | -56.5%Best |
| $10,000 over 5 years | $11,888 | $18,327Best |
| Fund Family | Morgan Stanley Investment Management | State Street Investment Management |
| Category | Fixed Income | Equity |
| Style | Emerging Markets Bond | Large Cap Blend |
| Inception | Jul 23, 1993 | Jan 22, 1993 |
Not shown on this pair: Top 10 Weight.
Volatility and max drawdown are measured over the window both funds cover: Jan 2, 1996 to Sep 11, 2026 (30.7 years).
MSD 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.
MSD vs SPY Performance
Morgan Stanley Emerging Markets Debt Fund Inc. (MSD) is an ETF from Morgan Stanley Investment Management and State Street SPDR S&P 500 ETF Trust (SPY) is an ETF from State Street Investment Management. Over the past year MSD returned +3.67% while SPY returned +17.51%. Year to date, MSD is up 1.37% versus a gain of 12.47% for SPY.
Over three years, MSD compounded at +13.85% per year against +21.18% for SPY; over five years the annualized figures are +3.52% and +12.88% respectively. Across the full 31-year window we track, SPY has the edge at +8.78% annualized vs -0.31%.
Past performance does not guarantee future results.
Risk: Volatility and Drawdowns
MSD has been the more volatile fund, with annualized monthly volatility of 18.3% 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 -66.0% for MSD and -56.5% 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 0.51. They move together some of the time, and apart the rest.
Fees and Cost Over Time
MSD charges 1.19% per year while SPY charges 0.09%. On a $10,000 position that is $119 vs $9 annually, a gap of $110 per year that compounds over a long holding period. On income, MSD currently yields 7.67% against 0.98% for SPY.
Holdings Overlap
We hold position weights for 53 holdings in MSD and 504 in SPY, totalling 25.0% and 100.0% of the two funds. The two books name no position in common, so there is no overlap percentage to show.
The two holdings books were reported 126 days apart, MSD as of Mar 31, 2026 and SPY as of Aug 4, 2026, so some of the difference between them is the time between the two reports rather than the funds.
0 positions in common, counted across the 53 positions we hold weights for in MSD and 504 in SPY, against full books of 358 and 505.
You are not choosing between two funds in isolation.
Whichever of MSD 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, MSD or SPY?
MSD has an expense ratio of 1.19% while SPY charges 0.09%. SPY is the cheaper option, by $110 a year on a $10,000 investment.
Which performed better, MSD or SPY?
Over the past year MSD returned +3.67% vs +17.51% for SPY, so SPY leads on 1-year performance. Over the longest common window we track (31 years), MSD annualized -0.31% vs +8.78% for SPY. Past performance does not guarantee future results. This is information, not a recommendation.
Which is riskier, MSD or SPY?
MSD has been the more volatile fund at 18.3% annualized versus 15.3% for SPY. Worst drawdown: MSD -66.0% vs SPY -56.5%.
Should I hold both MSD and SPY?
MSD and SPY have a monthly-return correlation of 0.51, 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, MSD or SPY?
MSD yields 7.67% while SPY yields 0.98%, so MSD currently pays the higher dividend yield.
Is SPY better than MSD?
SPY has a lower expense ratio. SPY led over 1Y, 3Y, 5Y and the full window. Which one suits a particular account depends on what it is for. This is information, not a recommendation.