QDEF vs SPY
Northern Trust Quality Dividend Defensive ETF vs State Street SPDR S&P 500 ETF Trust
Which is better, QDEF or SPY?
Large Cap Value against Large Cap Blend.
SPY has a lower expense ratio. SPY led over 1Y, 3Y, 5Y and the full window. The two have moved almost in lockstep, correlation 0.95. QDEF is less concentrated, with 35.6% of the fund in its ten largest positions against 37.8%.
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
| Metric | QDEF | SPY |
|---|---|---|
| Expense Ratio | 0.39% | 0.09%Best |
| AUM | $555M | $804.7B |
| Dividend Yield | 1.54% | 0.98% |
| Holdings | 137 | 505 |
| YTD Return | +11.04% | +12.99%Best |
| 1Y Return | +14.26% | +16.73%Best |
| 3Y Return (annualized) | +19.90% | +22.52%Best |
| 5Y Return (annualized) | +12.58% | +13.07%Best |
| Volatility (annualized) | 13.4%Best | 14.3% |
| Max Drawdown | -36.2% | -34.1%Best |
| $10,000 over 5 years | $18,084 | $18,481Best |
| Top 10 Weight | 35.6%Best | 37.8% |
| Fund Family | Northern Trust Asset Management | State Street Investment Management |
| Category | Equity | Equity |
| Style | Large Cap Value | Large Cap Blend |
| Inception | Dec 14, 2012 | Jan 22, 1993 |
Volatility and max drawdown are measured over the window both funds cover: Dec 19, 2012 to Sep 23, 2026 (13.8 years).
QDEF 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 13.8 years both funds cover.
QDEF vs SPY Performance
Northern Trust Quality Dividend Defensive ETF (QDEF) is an ETF from Northern Trust Asset Management and State Street SPDR S&P 500 ETF Trust (SPY) is an ETF from State Street Investment Management. Over the past year QDEF returned +14.26% while SPY returned +16.73%. Year to date, QDEF is up 11.04% versus a gain of 12.99% for SPY.
Over three years, QDEF compounded at +19.90% per year against +22.52% for SPY; over five years the annualized figures are +12.58% and +13.07% respectively. Across the full 14-year window we track, SPY has the edge at +13.53% annualized vs +10.45%.
Past performance does not guarantee future results.
Risk: Volatility and Drawdowns
SPY has been the more volatile fund, with annualized monthly volatility of 14.3% compared with 13.4% for QDEF. 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 -36.2% for QDEF 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 0.95. They move almost in lockstep, so holding both mostly duplicates the same exposure.
Fees and Cost Over Time
QDEF charges 0.39% per year while SPY charges 0.09%. On a $10,000 position that is $39 vs $9 annually, a gap of $30 per year that compounds over a long holding period. On income, QDEF currently yields 1.54% against 0.98% for SPY.
Holdings Overlap
83.7% of QDEF's money is in holdings SPY also owns. 55.1% of SPY's money is in holdings QDEF also owns.
Most of QDEF is already inside SPY. Owning both mostly buys the same companies twice.
110 positions in common, counted across the 154 positions we hold weights for in QDEF and 504 in SPY, against full books of 137 and 505.
What only one of them owns
Our book lists 388 positions for SPY that do not appear in our book for QDEF (44.3% of the fund), and 41 for QDEF that do not appear in SPY (13.4%).
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
| Stock | Weight in QDEF | Weight in SPY | Difference |
|---|---|---|---|
| AAPLApple, Inc | 8.57% | 7.26% | 1.31% |
| NVDANvidia Corp | 7.05% | 8.01% | 0.96% |
| MSFTMicrosoft Corp | 4.36% | 5.66% | 1.30% |
| AVGOBroadcom Inc | 2.67% | 2.66% | 0.01% |
| GOOGLAlphabet Inc,class A | 2.29% | 2.99% | 0.70% |
| GOOGAlphabet Inc | 1.83% | 2.39% | 0.56% |
| JNJJohnson & Johnson - Common | 2.91% | 0.99% | 1.92% |
| JPMJpmorgan Chase | 2.11% | 1.45% | 0.66% |
| METAMeta Platforms Inc | 1.29% | 1.93% | 0.64% |
| LLYEli Lilly & Co. | 1.80% | 1.40% | 0.40% |
83.7% of QDEF 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.
Free for up to 10 holdings. No account needed.
Frequently Asked Questions
Which is cheaper, QDEF or SPY?
QDEF has an expense ratio of 0.39% while SPY charges 0.09%. SPY is the cheaper option, by $30 a year on a $10,000 investment.
Which performed better, QDEF or SPY?
Over the past year QDEF returned +14.26% vs +16.73% for SPY, so SPY leads on 1-year performance. Over the longest common window we track (14 years), QDEF annualized +10.45% vs +13.53% for SPY. Past performance does not guarantee future results. This is information, not a recommendation.
Which is riskier, QDEF or SPY?
SPY has been the more volatile fund at 14.3% annualized versus 13.4% for QDEF. Worst drawdown: QDEF -36.2% vs SPY -34.1%.
Should I hold both QDEF and SPY?
QDEF and SPY have a monthly-return correlation of 0.95, so they move almost identically. What is left to separate them is the fee and the index each one tracks. This is information, not a recommendation.
What is the holdings overlap between QDEF and SPY?
83.7% of QDEF's money is in holdings SPY also owns. 55.1% of SPY's is in holdings QDEF also owns. They hold 110 positions in common, counted across the 154 positions we hold weights for in QDEF and 504 in SPY.
Which pays a higher dividend, QDEF or SPY?
QDEF yields 1.54% while SPY yields 0.98%, so QDEF currently pays the higher dividend yield.
Is SPY better than QDEF?
SPY has a lower expense ratio. SPY led over 1Y, 3Y, 5Y and the full window. The two have moved almost in lockstep, correlation 0.95. QDEF is less concentrated, with 35.6% of the fund in its ten largest positions against 37.8%. Which one suits a particular account depends on what it is for. This is information, not a recommendation.