NCLO vs SPY
Nuveen AA-BBB CLO 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 | NCLO | SPY | Winner |
|---|---|---|---|
| Expense Ratio | 0.26% | 0.09% | |
| AUM | $154M | $821.1B | |
| Dividend Yield | 5.78% | 1.01% | |
| Holdings | 103 | 505 | |
| YTD Return | +3.43% | +12.68% | |
| 1Y Return | +5.64% | +21.82% | |
| 3Y Return (annualized) | - | +21.98% | |
| 5Y Return (annualized) | - | +12.89% | |
| Volatility (annualized) | 1.1% | 15.3% | |
| Max Drawdown | -3.1% | -56.5% | |
| Fund Family | Nuveen | State Street Investment Management | |
| Category | Fixed Income | Equity | |
| Inception | Dec 10, 2024 | Jan 22, 1993 |
NCLO vs SPY Performance
Nuveen AA-BBB CLO ETF (NCLO) is a ETF from Nuveen and State Street SPDR S&P 500 ETF Trust (SPY) is a ETF from State Street Investment Management. Over the past year NCLO returned +5.64% while SPY returned +21.82%. Year to date, NCLO is up 3.43% versus a gain of 12.68% for SPY.
Risk: Volatility and Drawdowns
SPY has been the more volatile fund, with annualized monthly volatility of 15.3% compared with 1.1% for NCLO. 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 -3.1% for NCLO 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 0.74. They usually move together, but the gap leaves some room for diversification.
Fees and Cost Over Time
NCLO charges 0.26% per year while SPY charges 0.09%. On a $10,000 position that is $26 vs $9 annually, a gap of $17 per year that compounds over a long holding period. On income, NCLO currently yields 5.78% against 1.01% for SPY.
Holdings Overlap
NCLO 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, NCLO or SPY?
NCLO has an expense ratio of 0.26% while SPY charges 0.09%. SPY is the cheaper option. On a $10,000 investment, that is $17 per year of difference.
Which performed better, NCLO or SPY?
Over the past year NCLO returned +5.64% vs +21.82% for SPY, so SPY leads on 1-year performance. Over the longest common window we track (2 years), NCLO annualized +5.55% vs +8.81% for SPY. Past performance does not guarantee future results.
Which is riskier, NCLO or SPY?
SPY has been the more volatile fund at 15.3% annualized versus 1.1% for NCLO. Worst drawdown: NCLO -3.1% vs SPY -56.5%.
Should I hold both NCLO and SPY?
NCLO and SPY have a monthly-return correlation of 0.74, so combining them can provide real diversification depending on your allocation goals.
What is the holdings overlap between NCLO and SPY?
NCLO and SPY share 0 common holdings with a 0.0% weight overlap. Combined, they hold 506 unique securities.
Which pays a higher dividend, NCLO or SPY?
NCLO yields 5.78% while SPY yields 1.01%, so NCLO currently pays the higher dividend yield.
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