MSTB vs SPY

Quick Verdict

SPY has a lower expense ratio. SPY delivered stronger 1-year returns. SPY offers more diversification with 503 holdings.

Lower Fees: SPYHigher Returns: SPYMore Diversified: SPY

Side-by-Side Comparison

MetricMSTBSPYWinner
Expense Ratio1.38%0.09%
AUM$192M$789.1B
Dividend Yield0.38%1.01%
Holdings8505
YTD Return+10.85%+13.39%
1Y Return+16.71%+22.52%
3Y Return (annualized)+17.58%+21.36%
5Y Return (annualized)+7.99%+13.19%
Volatility (annualized)14.2%15.3%
Max Drawdown-25.6%-56.5%
Fund FamilyLittle Harbor AdvisorsState Street Investment Management
CategoryAllocation/BalancedEquity
InceptionSep 30, 2020Jan 22, 1993

MSTB vs SPY Performance

LHA Market State Tactical Beta ETF (MSTB) is a ETF from Little Harbor Advisors and State Street SPDR S&P 500 ETF Trust (SPY) is a ETF from State Street Investment Management. Over the past year MSTB returned +16.71% while SPY returned +22.52%. Year to date, MSTB is up 10.85% versus a gain of 13.39% for SPY.

Over three years, MSTB compounded at +17.58% per year against +21.36% for SPY; over five years the annualized figures are +7.99% and +13.19% respectively. Across the full 6-year window we track, MSTB has the edge at +11.31% annualized vs +8.84%. 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 14.2% for MSTB. 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 -25.6% for MSTB 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

MSTB charges 1.38% per year while SPY charges 0.09%. On a $10,000 position that is $138 vs $9 annually, a gap of $129 per year that compounds over a long holding period. On income, MSTB currently yields 0.38% against 1.01% for SPY.

Holdings Overlap

0.0%overlap

MSTB and SPY share 0 holdings out of 506 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, MSTB or SPY?

MSTB has an expense ratio of 1.38% while SPY charges 0.09%. SPY is the cheaper option. On a $10,000 investment, that is $129 per year of difference.

Which performed better, MSTB or SPY?

Over the past year MSTB returned +16.71% vs +22.52% for SPY, so SPY leads on 1-year performance. Over the longest common window we track (6 years), MSTB annualized +11.31% vs +8.84% for SPY. Past performance does not guarantee future results.

Which is riskier, MSTB or SPY?

SPY has been the more volatile fund at 15.3% annualized versus 14.2% for MSTB. Worst drawdown: MSTB -25.6% vs SPY -56.5%.

Should I hold both MSTB and SPY?

MSTB 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 MSTB and SPY?

MSTB and SPY share 0 common holdings with a 0.0% weight overlap. Combined, they hold 506 unique securities.

Which pays a higher dividend, MSTB or SPY?

MSTB yields 0.38% while SPY yields 1.01%, so SPY currently pays the higher dividend yield.

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