QABA vs SPY

Quick Verdict

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

Lower Fees: SPYHigher Returns: QABAMore Diversified: SPY

Side-by-Side Comparison

MetricQABASPYWinner
Expense Ratio0.60%0.09%
AUM$92M$789.1B
Dividend Yield2.34%1.01%
Holdings147505
YTD Return+24.07%+13.39%
1Y Return+32.91%+22.52%
3Y Return (annualized)+19.07%+21.36%
5Y Return (annualized)+6.91%+13.19%
Volatility (annualized)22.5%15.3%
Max Drawdown-51.0%-56.5%
Fund FamilyFirst Trust Portfolios (US)State Street Investment Management
CategoryEquityEquity
InceptionJun 29, 2009Jan 22, 1993

QABA vs SPY Performance

First Trust NASDAQ ABA Community Bank Index Fund (QABA) 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 QABA returned +32.91% while SPY returned +22.52%. Year to date, QABA is up 24.07% versus a gain of 13.39% for SPY.

Over three years, QABA compounded at +19.07% per year against +21.36% for SPY; over five years the annualized figures are +6.91% and +13.19% respectively. Across the full 17-year window we track, SPY has the edge at +8.84% annualized vs +8.35%. Past performance does not guarantee future results.

Risk: Volatility and Drawdowns

QABA has been the more volatile fund, with annualized monthly volatility of 22.5% 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 -51.0% for QABA 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 0.63. They move independently enough that combining them can meaningfully diversify a portfolio.

Fees and Cost Over Time

QABA charges 0.60% per year while SPY charges 0.09%. On a $10,000 position that is $60 vs $9 annually, a gap of $51 per year that compounds over a long holding period. On income, QABA currently yields 2.34% against 1.01% for SPY.

Holdings Overlap

0.0%overlap

QABA and SPY share 0 holdings out of 663 unique holdings combined, representing a 0.0% weight overlap.

Moderate overlap means holding both could provide meaningful diversification benefits.

Frequently Asked Questions

Which is cheaper, QABA or SPY?

QABA has an expense ratio of 0.60% while SPY charges 0.09%. SPY is the cheaper option. On a $10,000 investment, that is $51 per year of difference.

Which performed better, QABA or SPY?

Over the past year QABA returned +32.91% vs +22.52% for SPY, so QABA leads on 1-year performance. Over the longest common window we track (17 years), QABA annualized +8.35% vs +8.84% for SPY. Past performance does not guarantee future results.

Which is riskier, QABA or SPY?

QABA has been the more volatile fund at 22.5% annualized versus 15.3% for SPY. Worst drawdown: QABA -51.0% vs SPY -56.5%.

Should I hold both QABA and SPY?

QABA and SPY have a monthly-return correlation of 0.63, so combining them can provide real diversification depending on your allocation goals.

What is the holdings overlap between QABA and SPY?

QABA and SPY share 0 common holdings with a 0.0% weight overlap. Combined, they hold 663 unique securities.

Which pays a higher dividend, QABA or SPY?

QABA yields 2.34% while SPY yields 1.01%, so QABA currently pays the higher dividend yield.

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