REIT vs SPY
ALPS Active REIT ETF vs State Street SPDR S&P 500 ETF Trust
Quick Verdict
SPY has a lower expense ratio. SPY delivered stronger 1-year returns. SPY offers more diversification with 503 holdings.
Side-by-Side Comparison
| Metric | REIT | SPY | Winner |
|---|---|---|---|
| Expense Ratio | 0.68% | 0.09% | |
| AUM | $59M | $789.1B | |
| Dividend Yield | 3.06% | 1.01% | |
| Holdings | 30 | 505 | |
| YTD Return | +18.38% | +14.47% | |
| 1Y Return | +21.17% | +21.96% | |
| 3Y Return (annualized) | +11.27% | +21.70% | |
| 5Y Return (annualized) | +4.55% | +13.30% | |
| Volatility (annualized) | 18.0% | 15.3% | |
| Max Drawdown | -29.3% | -56.5% | |
| Fund Family | ALPS Advisors | State Street Investment Management | |
| Category | Equity | Equity | |
| Inception | Feb 24, 2021 | Jan 22, 1993 |
REIT vs SPY Performance
ALPS Active REIT ETF (REIT) is a ETF from ALPS Advisors and State Street SPDR S&P 500 ETF Trust (SPY) is a ETF from State Street Investment Management. Over the past year REIT returned +21.17% while SPY returned +21.96%. Year to date, REIT is up 18.38% versus a gain of 14.47% for SPY.
Over three years, REIT compounded at +11.27% per year against +21.70% for SPY; over five years the annualized figures are +4.55% and +13.30% respectively. Across the full 6-year window we track, SPY has the edge at +8.87% annualized vs +7.84%. 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 15.3% 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 -29.3% for REIT 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 0.79. 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 3.06% against 1.01% for SPY.
Holdings Overlap
REIT and SPY share 16 holdings out of 516 unique holdings combined, representing a 1.2% weight overlap.
Moderate overlap means holding both could provide meaningful diversification benefits.
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. On a $10,000 investment, that is $59 per year of difference.
Which performed better, REIT or SPY?
Over the past year REIT returned +21.17% vs +21.96% for SPY, so SPY leads on 1-year performance. Over the longest common window we track (6 years), REIT annualized +7.84% vs +8.87% for SPY. Past performance does not guarantee future results.
Which is riskier, REIT or SPY?
REIT has been the more volatile fund at 18.0% annualized versus 15.3% for SPY. Worst drawdown: REIT -29.3% vs SPY -56.5%.
Should I hold both REIT and SPY?
REIT and SPY have a monthly-return correlation of 0.79, so combining them can provide real diversification depending on your allocation goals.
What is the holdings overlap between REIT and SPY?
REIT and SPY share 16 common holdings with a 1.2% weight overlap. Combined, they hold 516 unique securities.
Which pays a higher dividend, REIT or SPY?
REIT yields 3.06% while SPY yields 1.01%, so REIT currently pays the higher dividend yield.
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