NXTG vs SPY

NXTG vs SPY

Which is better, NXTG or SPY?

Each has led over a different period.

SPY has a lower expense ratio. NXTG led over 1Y, 3Y and 5Y, SPY over the full window. NXTG is less concentrated, with 15.5% of the fund in its ten largest positions against 38.0%.

Lower Fees: SPYHigher Returns: splitLess Concentrated: NXTG

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

MetricNXTGSPY
Expense Ratio0.70%0.09%Best
AUM$565M$814.4B
Dividend Yield1.27%1.01%
Holdings217505
YTD Return+42.41%Best+13.34%
1Y Return+57.87%Best+19.97%
3Y Return (annualized)+32.32%Best+21.20%
5Y Return (annualized)+16.33%Best+12.81%
Volatility (annualized)17.3%14.2%Best
Max Drawdown-33.6%Best-34.1%
$10,000 over 5 years$21,304Best$18,270
Top 10 Weight15.5%Best38.0%
Fund FamilyFirst Trust Portfolios (US)State Street Investment Management
CategoryEquityEquity
StyleLarge Cap BlendLarge Cap Blend
InceptionFeb 17, 2011Jan 22, 1993

Volatility and max drawdown are measured over the window both funds cover: Feb 22, 2011 to Sep 4, 2026 (15.5 years).

NXTG 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 15.5 years both funds cover.

NXTG vs SPY Performance

First Trust Indxx NextG ETF (NXTG) is an ETF from First Trust Portfolios (US) and State Street SPDR S&P 500 ETF Trust (SPY) is an ETF from State Street Investment Management. Over the past year NXTG returned +57.87% while SPY returned +19.97%. Year to date, NXTG is up 42.41% versus a gain of 13.34% for SPY.

Over three years, NXTG compounded at +32.32% per year against +21.20% for SPY; over five years the annualized figures are +16.33% and +12.81% respectively. Across the full 16-year window we track, SPY has the edge at +12.57% annualized vs +12.05%.

Past performance does not guarantee future results.

Risk: Volatility and Drawdowns

NXTG has been the more volatile fund, with annualized monthly volatility of 17.3% compared with 14.2% 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 -33.6% for NXTG 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 0.81. They usually move together, but the gap leaves some room for diversification.

Fees and Cost Over Time

NXTG charges 0.70% per year while SPY charges 0.09%. On a $10,000 position that is $70 vs $9 annually, a gap of $61 per year that compounds over a long holding period. On income, NXTG currently yields 1.27% against 1.01% for SPY.

Holdings Overlap

NXTG already in SPY35.8%
SPY already in NXTG24.9%

35.8% of NXTG's money is in holdings SPY also owns. 24.9% of SPY's money is in holdings NXTG also owns.

The two portfolios partly overlap.

30 positions in common, counted across the 99 positions we hold weights for in NXTG and 503 in SPY, against full books of 217 and 505.

What only one of them owns

Our book lists 463 positions for SPY that do not appear in our book for NXTG (74.5% of the fund), and 7 for NXTG that do not appear in SPY (5.2%).

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 NXTGWeight in SPYDifference
NVDANvidia Corp.1.44%7.71%6.27%
AAPLApple Inc Ord1.41%6.83%5.42%
AVGOBroadcom Inc1.48%2.97%1.49%
MUMicron Technology, Inc.1.32%1.51%0.19%
AMDAdvanced Micro Devices Inc1.41%1.27%0.14%
CSCOCisco Systems Inc1.35%0.72%0.63%
ANETArista Networks Inc.1.72%0.30%1.42%
INTCIntel Corp.1.25%0.72%0.53%
HPEHewlett Packard Enterprise Co.1.54%0.10%1.44%
ADIAnalog Devices, Inc.1.27%0.28%0.99%

35.8% of NXTG is already inside SPY.

You probably hold more than these two. Add the rest and see how much of the whole book is the same companies twice.

NXTGSPY

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Frequently Asked Questions

Which is cheaper, NXTG or SPY?

NXTG has an expense ratio of 0.70% while SPY charges 0.09%. SPY is the cheaper option, by $61 a year on a $10,000 investment.

Which performed better, NXTG or SPY?

Over the past year NXTG returned +57.87% vs +19.97% for SPY, so NXTG leads on 1-year performance. Over the longest common window we track (16 years), NXTG annualized +12.05% vs +12.57% for SPY. Past performance does not guarantee future results. This is information, not a recommendation.

Which is riskier, NXTG or SPY?

NXTG has been the more volatile fund at 17.3% annualized versus 14.2% for SPY. Worst drawdown: NXTG -33.6% vs SPY -34.1%.

Should I hold both NXTG and SPY?

NXTG and SPY have a monthly-return correlation of 0.81, 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 NXTG and SPY?

35.8% of NXTG's money is in holdings SPY also owns. 24.9% of SPY's is in holdings NXTG also owns. They hold 30 positions in common, counted across the 99 positions we hold weights for in NXTG and 503 in SPY.

Which pays a higher dividend, NXTG or SPY?

NXTG yields 1.27% while SPY yields 1.01%, so NXTG currently pays the higher dividend yield.

Is SPY better than NXTG?

SPY has a lower expense ratio. NXTG led over 1Y, 3Y and 5Y, SPY over the full window. NXTG is less concentrated, with 15.5% 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.