NXTG vs SPY
First Trust Indxx NextG ETF vs State Street SPDR S&P 500 ETF Trust
Quick Verdict
SPY has a lower expense ratio. NXTG delivered stronger 1-year returns. SPY offers more diversification with 503 holdings.
Side-by-Side Comparison
| Metric | NXTG | SPY | Winner |
|---|---|---|---|
| Expense Ratio | 0.70% | 0.09% | |
| AUM | $539M | $789.1B | |
| Dividend Yield | 1.15% | 1.01% | |
| Holdings | 108 | 505 | |
| YTD Return | +43.27% | +14.47% | |
| 1Y Return | +56.83% | +21.96% | |
| 3Y Return (annualized) | +33.06% | +21.70% | |
| 5Y Return (annualized) | +17.13% | +13.30% | |
| Volatility (annualized) | 17.4% | 15.3% | |
| Max Drawdown | -33.6% | -56.5% | |
| Fund Family | First Trust Portfolios (US) | State Street Investment Management | |
| Category | Equity | Equity | |
| Inception | Feb 17, 2011 | Jan 22, 1993 |
NXTG vs SPY Performance
First Trust Indxx NextG ETF (NXTG) is a ETF from First Trust Portfolios (US) and State Street SPDR S&P 500 ETF Trust (SPY) is a ETF from State Street Investment Management. Over the past year NXTG returned +56.83% while SPY returned +21.96%. Year to date, NXTG is up 43.27% versus a gain of 14.47% for SPY.
Over three years, NXTG compounded at +33.06% per year against +21.70% for SPY; over five years the annualized figures are +17.13% and +13.30% respectively. Across the full 16-year window we track, NXTG has the edge at +12.15% annualized vs +8.87%. Past performance does not guarantee future results.
Risk: Volatility and Drawdowns
NXTG has been the more volatile fund, with annualized monthly volatility of 17.4% 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 -33.6% for NXTG 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 0.82. 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 1.15% against 1.01% for SPY.
Holdings Overlap
NXTG and SPY share 31 holdings out of 571 unique holdings combined, representing a 12.2% weight overlap.
Moderate overlap means holding both could provide meaningful diversification benefits.
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. On a $10,000 investment, that is $61 per year of difference.
Which performed better, NXTG or SPY?
Over the past year NXTG returned +56.83% vs +21.96% for SPY, so NXTG leads on 1-year performance. Over the longest common window we track (16 years), NXTG annualized +12.15% vs +8.87% for SPY. Past performance does not guarantee future results.
Which is riskier, NXTG or SPY?
NXTG has been the more volatile fund at 17.4% annualized versus 15.3% for SPY. Worst drawdown: NXTG -33.6% vs SPY -56.5%.
Should I hold both NXTG and SPY?
NXTG and SPY have a monthly-return correlation of 0.82, so combining them can provide real diversification depending on your allocation goals.
What is the holdings overlap between NXTG and SPY?
NXTG and SPY share 31 common holdings with a 12.2% weight overlap. Combined, they hold 571 unique securities.
Which pays a higher dividend, NXTG or SPY?
NXTG yields 1.15% while SPY yields 1.01%, so NXTG currently pays the higher dividend yield.
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