MSTB vs SPY

MSTB vs SPY

Which is better, MSTB or SPY?

Tactical Allocation against Large Cap Blend.

SPY has a lower expense ratio. SPY led over 1Y, 3Y, 5Y and the full window. The two have moved almost in lockstep, correlation 0.96.

Lower Fees: SPYHigher Returns: 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

MetricMSTBSPY
Expense Ratio1.38%0.09%Best
AUM$199M$814.4B
Dividend Yield0.38%1.01%
Holdings10505
YTD Return+9.92%+12.71%Best
1Y Return+13.63%+19.36%Best
3Y Return (annualized)+17.65%+21.09%Best
5Y Return (annualized)+7.47%+12.69%Best
Volatility (annualized)14.1%Best15.3%
Max Drawdown-25.6%-24.5%Best
$10,000 over 5 years$14,336$18,173Best
Fund FamilyLittle Harbor AdvisorsState Street Investment Management
CategoryAllocation/BalancedEquity
StyleTactical AllocationLarge Cap Blend
InceptionSep 30, 2020Jan 22, 1993

Not shown on this pair: Top 10 Weight.

Volatility and max drawdown are measured over the window both funds cover: Sep 30, 2020 to Sep 8, 2026 (5.9 years).

MSTB 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 5.9 years both funds cover.

MSTB vs SPY Performance

LHA Market State Tactical Beta ETF (MSTB) is an ETF from Little Harbor Advisors and State Street SPDR S&P 500 ETF Trust (SPY) is an ETF from State Street Investment Management. Over the past year MSTB returned +13.63% while SPY returned +19.36%. Year to date, MSTB is up 9.92% versus a gain of 12.71% for SPY.

Over three years, MSTB compounded at +17.65% per year against +21.09% for SPY; over five years the annualized figures are +7.47% and +12.69% respectively. Across the full 6-year window we track, SPY has the edge at +16.39% annualized vs +11.00%.

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 14.1% 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 -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 0.96. 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

We hold position weights for 3 holdings in MSTB and 503 in SPY, totalling 89.7% and 100.0% of the two funds. The two books name no position in common, so there is no overlap percentage to show.

0 positions in common, counted across the 3 positions we hold weights for in MSTB and 503 in SPY, against full books of 10 and 505.

You are not choosing between two funds in isolation.

Whichever of MSTB and SPY you pick has to sit alongside everything else you own. Add the rest and see what the combination actually holds.

MSTBSPY

Free for up to 10 holdings. No account needed.

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, by $129 a year on a $10,000 investment.

Which performed better, MSTB or SPY?

Over the past year MSTB returned +13.63% vs +19.36% for SPY, so SPY leads on 1-year performance. Over the longest common window we track (6 years), MSTB annualized +11.00% vs +16.39% for SPY. Past performance does not guarantee future results. This is information, not a recommendation.

Which is riskier, MSTB or SPY?

SPY has been the more volatile fund at 15.3% annualized versus 14.1% for MSTB. Worst drawdown: MSTB -25.6% vs SPY -24.5%.

Should I hold both MSTB and SPY?

MSTB and SPY have a monthly-return correlation of 0.96, so they move almost identically. What is left to separate them is the fee and the index each one tracks. This is information, not a recommendation.

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.

Is SPY better than MSTB?

SPY has a lower expense ratio. SPY led over 1Y, 3Y, 5Y and the full window. The two have moved almost in lockstep, correlation 0.96. Which one suits a particular account depends on what it is for. This is information, not a recommendation.