NCZ vs SPY
Virtus Convertible & Income Fund II vs State Street SPDR S&P 500 ETF Trust
Quick Verdict
SPY has a lower expense ratio. NCZ delivered stronger 1-year returns. SPY offers more diversification with 503 holdings.
Side-by-Side Comparison
| Metric | NCZ | SPY | Winner |
|---|---|---|---|
| Expense Ratio | 1.44% | 0.09% | |
| AUM | $321M | $789.1B | |
| Dividend Yield | 8.16% | 1.01% | |
| Holdings | 220 | 505 | |
| YTD Return | +22.27% | +13.68% | |
| 1Y Return | +33.30% | +21.53% | |
| 3Y Return (annualized) | +22.85% | +21.44% | |
| 5Y Return (annualized) | +6.00% | +13.18% | |
| Volatility (annualized) | 25.6% | 15.3% | |
| Max Drawdown | -85.6% | -56.5% | |
| Fund Family | Virtus Investment Partners | State Street Investment Management | |
| Category | Convertible | Equity | |
| Inception | Jul 31, 2003 | Jan 22, 1993 |
NCZ vs SPY Performance
Virtus Convertible & Income Fund II (NCZ) is a ETF from Virtus Investment Partners and State Street SPDR S&P 500 ETF Trust (SPY) is a ETF from State Street Investment Management. Over the past year NCZ returned +33.30% while SPY returned +21.53%. Year to date, NCZ is up 22.27% versus a gain of 13.68% for SPY.
Over three years, NCZ compounded at +22.85% per year against +21.44% for SPY; over five years the annualized figures are +6.00% and +13.18% respectively. Across the full 23-year window we track, SPY has the edge at +8.85% annualized vs -2.96%. Past performance does not guarantee future results.
Risk: Volatility and Drawdowns
NCZ has been the more volatile fund, with annualized monthly volatility of 25.6% 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 -85.6% for NCZ 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 0.73. They usually move together, but the gap leaves some room for diversification.
Fees and Cost Over Time
NCZ charges 1.44% per year while SPY charges 0.09%. On a $10,000 position that is $144 vs $9 annually, a gap of $135 per year that compounds over a long holding period. On income, NCZ currently yields 8.16% against 1.01% for SPY.
Holdings Overlap
NCZ and SPY share 27 holdings out of 573 unique holdings combined, representing a 3.5% weight overlap.
Moderate overlap means holding both could provide meaningful diversification benefits.
Frequently Asked Questions
Which is cheaper, NCZ or SPY?
NCZ has an expense ratio of 1.44% while SPY charges 0.09%. SPY is the cheaper option. On a $10,000 investment, that is $135 per year of difference.
Which performed better, NCZ or SPY?
Over the past year NCZ returned +33.30% vs +21.53% for SPY, so NCZ leads on 1-year performance. Over the longest common window we track (23 years), NCZ annualized -2.96% vs +8.85% for SPY. Past performance does not guarantee future results.
Which is riskier, NCZ or SPY?
NCZ has been the more volatile fund at 25.6% annualized versus 15.3% for SPY. Worst drawdown: NCZ -85.6% vs SPY -56.5%.
Should I hold both NCZ and SPY?
NCZ and SPY have a monthly-return correlation of 0.73, so combining them can provide real diversification depending on your allocation goals.
What is the holdings overlap between NCZ and SPY?
NCZ and SPY share 27 common holdings with a 3.5% weight overlap. Combined, they hold 573 unique securities.
Which pays a higher dividend, NCZ or SPY?
NCZ yields 8.16% while SPY yields 1.01%, so NCZ currently pays the higher dividend yield.
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