QLTY vs SPY
GMO US Quality ETF vs State Street SPDR S&P 500 ETF Trust
Quick Verdict
SPY has a lower expense ratio. QLTY delivered stronger 1-year returns. SPY offers more diversification with 503 holdings.
Side-by-Side Comparison
| Metric | QLTY | SPY | Winner |
|---|---|---|---|
| Expense Ratio | 0.50% | 0.09% | |
| AUM | $4.8B | $789.1B | |
| Dividend Yield | 0.88% | 1.01% | |
| Holdings | 43 | 505 | |
| YTD Return | +12.07% | +13.39% | |
| 1Y Return | +27.13% | +22.52% | |
| 3Y Return (annualized) | - | +21.36% | |
| 5Y Return (annualized) | - | +13.19% | |
| Volatility (annualized) | 12.2% | 15.3% | |
| Max Drawdown | -17.0% | -56.5% | |
| Fund Family | GMO | State Street Investment Management | |
| Category | Equity | Equity | |
| Inception | Nov 13, 2023 | Jan 22, 1993 |
QLTY vs SPY Performance
GMO US Quality ETF (QLTY) is a ETF from GMO and State Street SPDR S&P 500 ETF Trust (SPY) is a ETF from State Street Investment Management. Over the past year QLTY returned +27.13% while SPY returned +22.52%. Year to date, QLTY is up 12.07% versus a gain of 13.39% for SPY.
Risk: Volatility and Drawdowns
SPY has been the more volatile fund, with annualized monthly volatility of 15.3% compared with 12.2% for QLTY. 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 -17.0% for QLTY 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 0.94. They move almost in lockstep, so holding both mostly duplicates the same exposure.
Fees and Cost Over Time
QLTY charges 0.50% per year while SPY charges 0.09%. On a $10,000 position that is $50 vs $9 annually, a gap of $41 per year that compounds over a long holding period. On income, QLTY currently yields 0.88% against 1.01% for SPY.
Holdings Overlap
QLTY and SPY share 38 holdings out of 507 unique holdings combined, representing a 31.4% weight overlap.
Moderate overlap means holding both could provide meaningful diversification benefits.
Frequently Asked Questions
Which is cheaper, QLTY or SPY?
QLTY has an expense ratio of 0.50% while SPY charges 0.09%. SPY is the cheaper option. On a $10,000 investment, that is $41 per year of difference.
Which performed better, QLTY or SPY?
Over the past year QLTY returned +27.13% vs +22.52% for SPY, so QLTY leads on 1-year performance. Over the longest common window we track (3 years), QLTY annualized +22.58% vs +8.84% for SPY. Past performance does not guarantee future results.
Which is riskier, QLTY or SPY?
SPY has been the more volatile fund at 15.3% annualized versus 12.2% for QLTY. Worst drawdown: QLTY -17.0% vs SPY -56.5%.
Should I hold both QLTY and SPY?
QLTY and SPY have a monthly-return correlation of 0.94, so they move almost identically. Holding both adds little diversification - most investors pick one, usually on fees or the specific index tracked.
What is the holdings overlap between QLTY and SPY?
QLTY and SPY share 38 common holdings with a 31.4% weight overlap. Combined, they hold 507 unique securities.
Which pays a higher dividend, QLTY or SPY?
QLTY yields 0.88% while SPY yields 1.01%, so SPY currently pays the higher dividend yield.
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