NFLT vs SPY

NFLT vs SPY

Which is better, NFLT or SPY?

Diversified Sectoral Bond against Large Cap Blend.

SPY has a lower expense ratio. SPY led over 1Y, 3Y, 5Y and the full window.

Lower Fees: SPYHigher Returns: SPY

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

MetricNFLTSPY
Expense Ratio0.50%0.09%Best
AUM$486M$804.7B
Dividend Yield5.41%0.98%
Holdings895505
YTD Return+0.98%+12.47%Best
1Y Return+2.65%+17.51%Best
3Y Return (annualized)+6.98%+21.18%Best
5Y Return (annualized)+2.80%+12.88%Best
Volatility (annualized)5.3%Best15.1%
Max Drawdown-18.9%Best-34.1%
$10,000 over 5 years$11,481$18,327Best
Fund FamilyVirtus Investment PartnersState Street Investment Management
CategoryFixed IncomeEquity
StyleDiversified Sectoral BondLarge Cap Blend
InceptionAug 10, 2015Jan 22, 1993

Not shown on this pair: Top 10 Weight.

Volatility and max drawdown are measured over the window both funds cover: Aug 11, 2015 to Sep 11, 2026 (11.1 years).

NFLT 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 is available from the range buttons; it is not the opening view here because over the whole period one of these two funds moves so much further than the other that its line would sit flat on the axis.

NFLT vs SPY Performance

Virtus Newfleet Multi-Sector Bond ETF (NFLT) is an ETF from Virtus Investment Partners and State Street SPDR S&P 500 ETF Trust (SPY) is an ETF from State Street Investment Management. Over the past year NFLT returned +2.65% while SPY returned +17.51%. Year to date, NFLT is up 0.98% versus a gain of 12.47% for SPY.

Over three years, NFLT compounded at +6.98% per year against +21.18% for SPY; over five years the annualized figures are +2.80% and +12.88% respectively. Across the full 11-year window we track, SPY has the edge at +13.18% annualized vs +1.66%.

Past performance does not guarantee future results.

Risk: Volatility and Drawdowns

SPY has been the more volatile fund, with annualized monthly volatility of 15.1% compared with 5.3% for NFLT. 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 -18.9% for NFLT and -34.1% 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 0.71. They usually move together, but the gap leaves some room for diversification.

Fees and Cost Over Time

NFLT charges 0.50% per year while SPY charges 0.09%. On a $10,000 position that is $50 vs $9 annually, a gap of $41 per year that compounds over a long holding period. On income, NFLT currently yields 5.41% against 0.98% for SPY.

Holdings Overlap

SPY already in NFLT4.4%

At least 4.4% of SPY's money is in holdings NFLT also owns.

Stated as a floor: for NFLT, our book for it covers 2.1% of that fund, so a holding it does not list is one we cannot count as shared. The real figure is this or higher.

SPY and NFLT share little of their money.

4 positions in common, counted across the 26 positions we hold weights for in NFLT and 504 in SPY, against full books of 895 and 505.

Top Shared Holdings

StockWeight in NFLTWeight in SPYDifference
GOOGLAlphabet A Usd 0.0010.03%3.33%3.30%
BACBank Of America Corp.0.02%0.62%0.60%
WFCWells Fargo & Co.0.02%0.41%0.39%
ALBAlbemarle Corp.0.02%0.02%0.00%

You are not choosing between two funds in isolation.

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

NFLTSPY

Free for up to 10 holdings. No account needed.

Frequently Asked Questions

Which is cheaper, NFLT or SPY?

NFLT has an expense ratio of 0.50% while SPY charges 0.09%. SPY is the cheaper option, by $41 a year on a $10,000 investment.

Which performed better, NFLT or SPY?

Over the past year NFLT returned +2.65% vs +17.51% for SPY, so SPY leads on 1-year performance. Over the longest common window we track (11 years), NFLT annualized +1.66% vs +13.18% for SPY. Past performance does not guarantee future results. This is information, not a recommendation.

Which is riskier, NFLT or SPY?

SPY has been the more volatile fund at 15.1% annualized versus 5.3% for NFLT. Worst drawdown: NFLT -18.9% vs SPY -34.1%.

Should I hold both NFLT and SPY?

NFLT and SPY have a monthly-return correlation of 0.71, 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 NFLT and SPY?

At least 4.4% of SPY's money is in holdings NFLT also owns. Our book for NFLT is partial, so the real figure is this or higher. They hold 4 positions in common, counted across the 26 positions we hold weights for in NFLT and 504 in SPY.

Which pays a higher dividend, NFLT or SPY?

NFLT yields 5.41% while SPY yields 0.98%, so NFLT currently pays the higher dividend yield.

Is SPY better than NFLT?

SPY has a lower expense ratio. SPY led over 1Y, 3Y, 5Y and the full window. Which one suits a particular account depends on what it is for. This is information, not a recommendation.