REIT vs SPY
ALPS Active REIT ETF vs State Street SPDR S&P 500 ETF Trust
Which is better, REIT or SPY?
All Cap Blend against Large Cap Blend.
SPY has a lower expense ratio. SPY led over 1Y, 3Y, 5Y and the full window. SPY is less concentrated, with 38.2% of the fund in its ten largest positions against 54.7%.
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 | REIT | SPY |
|---|---|---|
| Expense Ratio | 0.68% | 0.09%Best |
| AUM | $54M | $811.2B |
| Dividend Yield | 2.74% | 0.98% |
| Holdings | 32 | 1,515 |
| YTD Return | +9.66% | +12.70%Best |
| 1Y Return | +8.01% | +15.53%Best |
| 3Y Return (annualized) | +11.45% | +22.86%Best |
| 5Y Return (annualized) | +3.34% | +13.47%Best |
| Volatility (annualized) | 18.0% | 15.1%Best |
| Max Drawdown | -29.3% | -24.5%Best |
| $10,000 over 5 years | $11,785 | $18,811Best |
| Top 10 Weight | 54.7% | 38.2%Best |
| Fund Family | ALPS Advisors | State Street Investment Management |
| Category | Equity | Equity |
| Style | All Cap Blend | Large Cap Blend |
| Inception | Feb 24, 2021 | Jan 22, 1993 |
Volatility and max drawdown are measured over the window both funds cover: Feb 26, 2021 to Oct 1, 2026 (5.6 years).
REIT 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 5.6 years both funds cover.
REIT vs SPY Performance
ALPS Active REIT ETF (REIT) is an ETF from ALPS Advisors and State Street SPDR S&P 500 ETF Trust (SPY) is an ETF from State Street Investment Management. Over the past year REIT returned +8.01% while SPY returned +15.53%. Year to date, REIT is up 9.66% versus a gain of 12.70% for SPY.
Over three years, REIT compounded at +11.45% per year against +22.86% for SPY; over five years the annualized figures are +3.34% and +13.47% respectively. Across the full 6-year window we track, SPY has the edge at +14.84% annualized vs +6.19%.
Past performance does not guarantee future results.
Risk: Volatility and Drawdowns
REIT has been the more volatile fund, with annualized monthly volatility of 18.0% compared with 15.1% 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 -29.3% for REIT and -24.5% 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 0.79. They usually move together, but the gap leaves some room for diversification.
Fees and Cost Over Time
REIT charges 0.68% per year while SPY charges 0.09%. On a $10,000 position that is $68 vs $9 annually, a gap of $59 per year that compounds over a long holding period. On income, REIT currently yields 2.74% against 0.98% for SPY.
Holdings Overlap
62.7% of REIT's money is in holdings SPY also owns. 1.2% of SPY's money is in holdings REIT also owns.
The two portfolios partly overlap.
17 positions in common, counted across the 31 positions we hold weights for in REIT and 504 in SPY, against full books of 32 and 1,515.
What only one of them owns
Measured across the 31 and 504 positions we hold weights for.
SPY holds 480 positions REIT does not, 98.0% of the fund.
Largest: NVDA 7.78%, AAPL 7.45%, MSFT 5.71%, AMZN 3.78%, GOOGL 3.12%
Top Shared Holdings
| Stock | Weight in REIT | Weight in SPY | Difference |
|---|---|---|---|
| WELLWelltower, Inc. | 10.25% | 0.25% | 10.00% |
| PLDPrologis Inc | 8.80% | 0.19% | 8.61% |
| EQIXEquinix Inc. Real Estate Investment Trust | 8.39% | 0.15% | 8.24% |
| SPGSimon Property Group Inc | 4.63% | 0.10% | 4.53% |
| ESSEssex Property | 4.26% | 0.03% | 4.23% |
| HSTHost Hotels & Resorts Inc | 3.20% | 0.02% | 3.18% |
| AMTAmerican Tower Corporation | 2.74% | 0.13% | 2.61% |
| DLRDigital Realty Trust Inc. | 2.75% | 0.09% | 2.66% |
| INVHInvitation Homes Inc. Reit | 2.56% | 0.02% | 2.54% |
| EQRVivmark Residential | 2.47% | 0.07% | 2.40% |
62.7% of REIT 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.
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Frequently Asked Questions
Which is cheaper, REIT or SPY?
REIT has an expense ratio of 0.68% while SPY charges 0.09%. SPY is the cheaper option, by $59 a year on a $10,000 investment.
Which performed better, REIT or SPY?
Over the past year REIT returned +8.01% vs +15.53% for SPY, so SPY leads on 1-year performance. Over the longest common window we track (6 years), REIT annualized +6.19% vs +14.84% for SPY. Past performance does not guarantee future results. This is information, not a recommendation.
Which is riskier, REIT or SPY?
REIT has been the more volatile fund at 18.0% annualized versus 15.1% for SPY. Worst drawdown: REIT -29.3% vs SPY -24.5%.
Should I hold both REIT and SPY?
REIT and SPY have a monthly-return correlation of 0.79, so their returns are far enough apart for the mix to behave differently from either one alone. This is information, not a recommendation.
What is the holdings overlap between REIT and SPY?
62.7% of REIT's money is in holdings SPY also owns. 1.2% of SPY's is in holdings REIT also owns. They hold 17 positions in common, counted across the 31 positions we hold weights for in REIT and 504 in SPY.
Which pays a higher dividend, REIT or SPY?
REIT yields 2.74% while SPY yields 0.98%, so REIT currently pays the higher dividend yield.
Is SPY better than REIT?
SPY has a lower expense ratio. SPY led over 1Y, 3Y, 5Y and the full window. SPY is less concentrated, with 38.2% of the fund in its ten largest positions against 54.7%. Which one suits a particular account depends on what it is for. This is information, not a recommendation.