NACP vs SPY

NACP vs SPY
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Quick Verdict

SPY has a lower expense ratio. NACP delivered stronger 1-year returns. SPY offers more diversification with 505 holdings.

Lower Fees: SPYHigher Returns: NACPMore Diversified: SPY

Side-by-Side Comparison

MetricNACPSPYWinner
Expense Ratio0.49%0.09%
AUM$76M$821.1B
Dividend Yield0.57%1.01%
Holdings203505
YTD Return+19.65%+12.35%
1Y Return+33.09%+20.15%
3Y Return (annualized)+25.41%+21.69%
5Y Return (annualized)+14.39%+12.77%
Volatility (annualized)17.7%15.3%
Max Drawdown-31.0%-56.5%
Fund FamilyImpact sharesState Street Investment Management
CategoryEquityEquity
InceptionJul 12, 2018Jan 22, 1993

NACP vs SPY Performance

Impact Shares NAACP Minority Empowerment ETF (NACP) is a ETF from Impact shares and State Street SPDR S&P 500 ETF Trust (SPY) is a ETF from State Street Investment Management. Over the past year NACP returned +33.09% while SPY returned +20.15%. Year to date, NACP is up 19.65% versus a gain of 12.35% for SPY.

Over three years, NACP compounded at +25.41% per year against +21.69% for SPY; over five years the annualized figures are +14.39% and +12.77% respectively. Across the full 8-year window we track, NACP has the edge at +16.21% annualized vs +8.79%. Past performance does not guarantee future results.

Risk: Volatility and Drawdowns

NACP has been the more volatile fund, with annualized monthly volatility of 17.7% 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 -31.0% for NACP 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 0.98. They move almost in lockstep, so holding both mostly duplicates the same exposure.

Fees and Cost Over Time

NACP charges 0.49% per year while SPY charges 0.09%. On a $10,000 position that is $49 vs $9 annually, a gap of $40 per year that compounds over a long holding period. On income, NACP currently yields 0.57% against 1.01% for SPY.

Holdings Overlap

54.8%overlap

NACP and SPY share 187 holdings out of 519 unique holdings combined, representing a 54.8% weight overlap.

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

Top Shared Holdings

StockWeight in NACPWeight in SPYDifference
NVDA4.79%7.71%2.92%
MSFT4.77%5.50%0.73%
AMZN4.80%4.08%0.72%
GOOGLProProPro
MUProProPro
METAProProPro
AMDProProPro
TSLAProProPro
JPMProProPro
CSCOProProPro
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Frequently Asked Questions

Which is cheaper, NACP or SPY?

NACP has an expense ratio of 0.49% while SPY charges 0.09%. SPY is the cheaper option. On a $10,000 investment, that is $40 per year of difference.

Which performed better, NACP or SPY?

Over the past year NACP returned +33.09% vs +20.15% for SPY, so NACP leads on 1-year performance. Over the longest common window we track (8 years), NACP annualized +16.21% vs +8.79% for SPY. Past performance does not guarantee future results.

Which is riskier, NACP or SPY?

NACP has been the more volatile fund at 17.7% annualized versus 15.3% for SPY. Worst drawdown: NACP -31.0% vs SPY -56.5%.

Should I hold both NACP and SPY?

NACP and SPY have a monthly-return correlation of 0.98, 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 NACP and SPY?

NACP and SPY share 187 common holdings with a 54.8% weight overlap. Combined, they hold 519 unique securities.

Which pays a higher dividend, NACP or SPY?

NACP yields 0.57% while SPY yields 1.01%, so SPY currently pays the higher dividend yield.

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