NBSM vs SPY
Neuberger Berman Small-Mid Cap 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 505 holdings.
Side-by-Side Comparison
| Metric | NBSM | SPY | Winner |
|---|---|---|---|
| Expense Ratio | 0.65% | 0.09% | |
| AUM | $119M | $821.1B | |
| Dividend Yield | 0.36% | 1.01% | |
| Holdings | 74 | 505 | |
| YTD Return | +15.48% | +12.22% | |
| 1Y Return | +14.94% | +20.83% | |
| 3Y Return (annualized) | - | +21.70% | |
| 5Y Return (annualized) | - | +12.98% | |
| Volatility (annualized) | 14.8% | 15.3% | |
| Max Drawdown | -25.2% | -56.5% | |
| Fund Family | Neuberger Berman | State Street Investment Management | |
| Category | Equity | Equity | |
| Inception | Mar 20, 2024 | Jan 22, 1993 |
NBSM vs SPY Performance
Neuberger Berman Small-Mid Cap ETF (NBSM) is a ETF from Neuberger Berman and State Street SPDR S&P 500 ETF Trust (SPY) is a ETF from State Street Investment Management. Over the past year NBSM returned +14.94% while SPY returned +20.83%. Year to date, NBSM is up 15.48% versus a gain of 12.22% for SPY.
Risk: Volatility and Drawdowns
SPY has been the more volatile fund, with annualized monthly volatility of 15.3% compared with 14.8% for NBSM. 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 -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 0.64. They move independently enough that combining them can meaningfully diversify a portfolio.
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 1.01% for SPY.
Holdings Overlap
NBSM and SPY share 7 holdings out of 575 unique holdings combined, representing a 0.2% weight overlap.
Moderate overlap means holding both could provide meaningful diversification benefits.
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. On a $10,000 investment, that is $56 per year of difference.
Which performed better, NBSM or SPY?
Over the past year NBSM returned +14.94% vs +20.83% for SPY, so SPY leads on 1-year performance. Over the longest common window we track (2 years), NBSM annualized +6.35% vs +8.79% for SPY. Past performance does not guarantee future results.
Which is riskier, NBSM or SPY?
SPY has been the more volatile fund at 15.3% annualized versus 14.8% for NBSM. Worst drawdown: NBSM -25.2% vs SPY -56.5%.
Should I hold both NBSM and SPY?
NBSM and SPY have a monthly-return correlation of 0.64, so combining them can provide real diversification depending on your allocation goals.
What is the holdings overlap between NBSM and SPY?
NBSM and SPY share 7 common holdings with a 0.2% weight overlap. Combined, they hold 575 unique securities.
Which pays a higher dividend, NBSM or SPY?
NBSM yields 0.36% while SPY yields 1.01%, so SPY currently pays the higher dividend yield.
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