RAYC 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

MetricRAYCSPYWinner
Expense Ratio0.80%0.09%
AUM$82M$789.1B
Dividend Yield5.19%1.01%
Holdings76505
YTD Return+31.98%+13.79%
1Y Return+22.93%+23.66%
3Y Return (annualized)+2.77%+21.40%
5Y Return (annualized)-5.51%+13.37%
Volatility (annualized)22.0%15.3%
Max Drawdown-57.6%-56.5%
Fund FamilyThe Advisors Inner Circle FundState Street Investment Management
CategoryEquityEquity
InceptionDec 30, 2020Jan 22, 1993

RAYC vs SPY Performance

Rayliant Quantamental China Equity ETF (RAYC) is a ETF from The Advisors Inner Circle Fund and State Street SPDR S&P 500 ETF Trust (SPY) is a ETF from State Street Investment Management. Over the past year RAYC returned +22.93% while SPY returned +23.66%. Year to date, RAYC is up 31.98% versus a gain of 13.79% for SPY.

Over three years, RAYC compounded at +2.77% per year against +21.40% for SPY; over five years the annualized figures are -5.51% and +13.37% respectively. Across the full 5-year window we track, SPY has the edge at +8.85% annualized vs -5.51%. Past performance does not guarantee future results.

Risk: Volatility and Drawdowns

RAYC has been the more volatile fund, with annualized monthly volatility of 22.0% 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 -57.6% for RAYC 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 0.18. They move independently enough that combining them can meaningfully diversify a portfolio.

Fees and Cost Over Time

RAYC charges 0.80% per year while SPY charges 0.09%. On a $10,000 position that is $80 vs $9 annually, a gap of $71 per year that compounds over a long holding period. On income, RAYC currently yields 5.19% against 1.01% for SPY.

Holdings Overlap

0.0%overlap

RAYC and SPY share 0 holdings out of 575 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, RAYC or SPY?

RAYC has an expense ratio of 0.80% while SPY charges 0.09%. SPY is the cheaper option. On a $10,000 investment, that is $71 per year of difference.

Which performed better, RAYC or SPY?

Over the past year RAYC returned +22.93% vs +23.66% for SPY, so SPY leads on 1-year performance. Over the longest common window we track (5 years), RAYC annualized -5.51% vs +8.85% for SPY. Past performance does not guarantee future results.

Which is riskier, RAYC or SPY?

RAYC has been the more volatile fund at 22.0% annualized versus 15.3% for SPY. Worst drawdown: RAYC -57.6% vs SPY -56.5%.

Should I hold both RAYC and SPY?

RAYC and SPY have a monthly-return correlation of 0.18, so combining them can provide real diversification depending on your allocation goals.

What is the holdings overlap between RAYC and SPY?

RAYC and SPY share 0 common holdings with a 0.0% weight overlap. Combined, they hold 575 unique securities.

Which pays a higher dividend, RAYC or SPY?

RAYC yields 5.19% while SPY yields 1.01%, so RAYC currently pays the higher dividend yield.

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