OUSM vs SPY

Quick Verdict

SPY has a lower expense ratio. SPY delivered stronger 1-year returns. SPY offers more diversification with 503 holdings.

Lower Fees: SPYHigher Returns: SPYMore Diversified: SPY

Side-by-Side Comparison

MetricOUSMSPYWinner
Expense Ratio0.48%0.09%
AUM$900M$789.1B
Dividend Yield1.84%1.01%
Holdings109505
YTD Return+14.31%+13.39%
1Y Return+16.43%+22.52%
3Y Return (annualized)+12.73%+21.36%
5Y Return (annualized)+8.57%+13.19%
Volatility (annualized)17.1%15.3%
Max Drawdown-40.0%-56.5%
Fund FamilyALPS AdvisorsState Street Investment Management
CategoryEquityEquity
InceptionDec 30, 2016Jan 22, 1993

OUSM vs SPY Performance

O Shares US Small-Cap Quality Dividend ETF (OUSM) is a ETF from ALPS Advisors and State Street SPDR S&P 500 ETF Trust (SPY) is a ETF from State Street Investment Management. Over the past year OUSM returned +16.43% while SPY returned +22.52%. Year to date, OUSM is up 14.31% versus a gain of 13.39% for SPY.

Over three years, OUSM compounded at +12.73% per year against +21.36% for SPY; over five years the annualized figures are +8.57% and +13.19% respectively. Across the full 10-year window we track, SPY has the edge at +8.84% annualized vs +8.57%. Past performance does not guarantee future results.

Risk: Volatility and Drawdowns

OUSM has been the more volatile fund, with annualized monthly volatility of 17.1% 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 -40.0% for OUSM 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 0.89. They usually move together, but the gap leaves some room for diversification.

Fees and Cost Over Time

OUSM charges 0.48% per year while SPY charges 0.09%. On a $10,000 position that is $48 vs $9 annually, a gap of $39 per year that compounds over a long holding period. On income, OUSM currently yields 1.84% against 1.01% for SPY.

Holdings Overlap

0.1%overlap

OUSM and SPY share 4 holdings out of 607 unique holdings combined, representing a 0.1% weight overlap.

Moderate overlap means holding both could provide meaningful diversification benefits.

Top Shared Holdings

StockWeight in OUSMWeight in SPYDifference
AOS1.72%0.01%1.71%
SWKS1.59%0.01%1.58%
RL0.76%0.02%0.74%
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Frequently Asked Questions

Which is cheaper, OUSM or SPY?

OUSM has an expense ratio of 0.48% while SPY charges 0.09%. SPY is the cheaper option. On a $10,000 investment, that is $39 per year of difference.

Which performed better, OUSM or SPY?

Over the past year OUSM returned +16.43% vs +22.52% for SPY, so SPY leads on 1-year performance. Over the longest common window we track (10 years), OUSM annualized +8.57% vs +8.84% for SPY. Past performance does not guarantee future results.

Which is riskier, OUSM or SPY?

OUSM has been the more volatile fund at 17.1% annualized versus 15.3% for SPY. Worst drawdown: OUSM -40.0% vs SPY -56.5%.

Should I hold both OUSM and SPY?

OUSM and SPY have a monthly-return correlation of 0.89, so combining them can provide real diversification depending on your allocation goals.

What is the holdings overlap between OUSM and SPY?

OUSM and SPY share 4 common holdings with a 0.1% weight overlap. Combined, they hold 607 unique securities.

Which pays a higher dividend, OUSM or SPY?

OUSM yields 1.84% while SPY yields 1.01%, so OUSM currently pays the higher dividend yield.

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