RFEM vs SPY
First Trust RiverFront Dynamic Emerging Markets ETF vs State Street SPDR S&P 500 ETF Trust
Quick Verdict
SPY has a lower expense ratio. RFEM delivered stronger 1-year returns. SPY offers more diversification with 503 holdings.
Side-by-Side Comparison
| Metric | RFEM | SPY | Winner |
|---|---|---|---|
| Expense Ratio | 0.95% | 0.09% | |
| AUM | $78M | $789.1B | |
| Dividend Yield | 1.70% | 1.01% | |
| Holdings | 115 | 505 | |
| YTD Return | +20.32% | +13.75% | |
| 1Y Return | +36.06% | +22.91% | |
| 3Y Return (annualized) | +24.53% | +21.67% | |
| 5Y Return (annualized) | +10.21% | +13.32% | |
| Volatility (annualized) | 17.1% | 15.3% | |
| Max Drawdown | -45.6% | -56.5% | |
| Fund Family | First Trust Portfolios (US) | State Street Investment Management | |
| Category | Equity | Equity | |
| Inception | Jun 14, 2016 | Jan 22, 1993 |
RFEM vs SPY Performance
First Trust RiverFront Dynamic Emerging Markets ETF (RFEM) is a ETF from First Trust Portfolios (US) and State Street SPDR S&P 500 ETF Trust (SPY) is a ETF from State Street Investment Management. Over the past year RFEM returned +36.06% while SPY returned +22.91%. Year to date, RFEM is up 20.32% versus a gain of 13.75% for SPY.
Over three years, RFEM compounded at +24.53% per year against +21.67% for SPY; over five years the annualized figures are +10.21% and +13.32% respectively. Across the full 10-year window we track, SPY has the edge at +8.85% annualized vs +8.75%. Past performance does not guarantee future results.
Risk: Volatility and Drawdowns
RFEM has been the more volatile fund, with annualized monthly volatility of 17.1% 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 -45.6% for RFEM 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 0.73. They usually move together, but the gap leaves some room for diversification.
Fees and Cost Over Time
RFEM charges 0.95% per year while SPY charges 0.09%. On a $10,000 position that is $95 vs $9 annually, a gap of $86 per year that compounds over a long holding period. On income, RFEM currently yields 1.70% against 1.01% for SPY.
Holdings Overlap
RFEM and SPY share 0 holdings out of 609 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, RFEM or SPY?
RFEM has an expense ratio of 0.95% while SPY charges 0.09%. SPY is the cheaper option. On a $10,000 investment, that is $86 per year of difference.
Which performed better, RFEM or SPY?
Over the past year RFEM returned +36.06% vs +22.91% for SPY, so RFEM leads on 1-year performance. Over the longest common window we track (10 years), RFEM annualized +8.75% vs +8.85% for SPY. Past performance does not guarantee future results.
Which is riskier, RFEM or SPY?
RFEM has been the more volatile fund at 17.1% annualized versus 15.3% for SPY. Worst drawdown: RFEM -45.6% vs SPY -56.5%.
Should I hold both RFEM and SPY?
RFEM and SPY have a monthly-return correlation of 0.73, so combining them can provide real diversification depending on your allocation goals.
What is the holdings overlap between RFEM and SPY?
RFEM and SPY share 0 common holdings with a 0.0% weight overlap. Combined, they hold 609 unique securities.
Which pays a higher dividend, RFEM or SPY?
RFEM yields 1.70% while SPY yields 1.01%, so RFEM currently pays the higher dividend yield.
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