NBSM vs SPY

NBSM vs SPY

Which is better, NBSM or SPY?

Small Cap Growth against Large Cap Blend.

SPY has a lower expense ratio. SPY led over 1Y and the full window. NBSM is less concentrated, with 20.1% of the fund in its ten largest positions against 38.0%.

Lower Fees: SPYHigher Returns: SPYLess Concentrated: NBSM

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

MetricNBSMSPY
Expense Ratio0.65%0.09%Best
AUM$116M$804.7B
Dividend Yield0.36%0.98%
Holdings80505
YTD Return+10.43%+11.52%Best
1Y Return+9.99%+17.48%Best
3Y Return (annualized)-+20.62%
5Y Return (annualized)-+12.73%
Volatility (annualized)14.7%12.2%Best
Max Drawdown-25.2%-18.8%Best
$10,000 over 2.5 years$11,110$15,007Best
Top 10 Weight20.1%Best38.0%
Fund FamilyNeuberger BermanState Street Investment Management
CategoryEquityEquity
StyleSmall Cap GrowthLarge Cap Blend
InceptionMar 20, 2024Jan 22, 1993

Volatility and max drawdown, and the $10,000 over 2.5 years row, are measured over the window both funds cover: Mar 22, 2024 to Sep 10, 2026 (2.5 years).

NBSM 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 2.5 years both funds cover.

NBSM vs SPY Performance

Neuberger Berman Small-Mid Cap ETF (NBSM) is an ETF from Neuberger Berman and State Street SPDR S&P 500 ETF Trust (SPY) is an ETF from State Street Investment Management. Over the past year NBSM returned +9.99% while SPY returned +17.48%. Year to date, NBSM is up 10.43% versus a gain of 11.52% for SPY.

Past performance does not guarantee future results.

Risk: Volatility and Drawdowns

NBSM has been the more volatile fund, with annualized monthly volatility of 14.7% compared with 12.2% 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 -25.2% for NBSM and -18.8% 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 0.65. They move together some of the time, and apart the rest.

Fees and Cost Over Time

NBSM charges 0.65% per year while SPY charges 0.09%. On a $10,000 position that is $65 vs $9 annually, a gap of $56 per year that compounds over a long holding period. On income, NBSM currently yields 0.36% against 0.98% for SPY.

Holdings Overlap

NBSM already in SPY9.1%
SPY already in NBSM0.2%

9.1% of NBSM's money is in holdings SPY also owns. 0.2% of SPY's money is in holdings NBSM also owns.

NBSM and SPY share little of their money.

7 positions in common, counted across the 78 positions we hold weights for in NBSM and 504 in SPY, against full books of 80 and 505.

What only one of them owns

Our book lists 487 positions for SPY that do not appear in our book for NBSM (99.3% of the fund), and 69 for NBSM that do not appear in SPY (87.0%).

Some of those will be the same company recorded under a different code in one of the two books, so the real difference in what you would own is no larger than this and may be smaller. We do not name the individual positions here for that reason.

Top Shared Holdings

StockWeight in NBSMWeight in SPYDifference
RVTYRevvity Inc1.85%0.02%1.83%
TYLTyler Technologies Inc1.75%0.02%1.73%
JKHYJack Henry & Associates Inc1.74%0.02%1.72%
VLTOVeralto Corp1.47%0.04%1.43%
LNTAlliant Energy Corp.1.45%0.03%1.42%
FICOFair Isaac Corp.0.67%0.04%0.63%
TPLTexas Pacific Land Trust0.17%0.03%0.14%

You are not choosing between two funds in isolation.

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

NBSMSPY

Free for up to 10 holdings. No account needed.

Frequently Asked Questions

Which is cheaper, NBSM or SPY?

NBSM has an expense ratio of 0.65% while SPY charges 0.09%. SPY is the cheaper option, by $56 a year on a $10,000 investment.

Which performed better, NBSM or SPY?

Over the past year NBSM returned +9.99% vs +17.48% for SPY, so SPY leads on 1-year performance. Past performance does not guarantee future results. This is information, not a recommendation.

Which is riskier, NBSM or SPY?

NBSM has been the more volatile fund at 14.7% annualized versus 12.2% for SPY. Worst drawdown: NBSM -25.2% vs SPY -18.8%.

Should I hold both NBSM and SPY?

NBSM and SPY have a monthly-return correlation of 0.65, so their returns are far enough apart for the mix to behave differently from either one alone. This is information, not a recommendation.

What is the holdings overlap between NBSM and SPY?

9.1% of NBSM's money is in holdings SPY also owns. 0.2% of SPY's is in holdings NBSM also owns. They hold 7 positions in common, counted across the 78 positions we hold weights for in NBSM and 504 in SPY.

Which pays a higher dividend, NBSM or SPY?

NBSM yields 0.36% while SPY yields 0.98%, so SPY currently pays the higher dividend yield.

Is SPY better than NBSM?

SPY has a lower expense ratio. SPY led over 1Y and the full window. NBSM is less concentrated, with 20.1% of the fund in its ten largest positions against 38.0%. Which one suits a particular account depends on what it is for. This is information, not a recommendation.