MSTB vs SPY
LHA Market State Tactical Beta ETF vs State Street SPDR S&P 500 ETF Trust
Quick Verdict
SPY has a lower expense ratio. SPY delivered stronger 1-year returns. SPY offers more diversification with 503 holdings.
Side-by-Side Comparison
| Metric | MSTB | SPY | Winner |
|---|---|---|---|
| Expense Ratio | 1.38% | 0.09% | |
| AUM | $192M | $789.1B | |
| Dividend Yield | 0.38% | 1.01% | |
| Holdings | 8 | 505 | |
| 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 Family | Little Harbor Advisors | State Street Investment Management | |
| Category | Allocation/Balanced | Equity | |
| Inception | Sep 30, 2020 | Jan 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
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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