RFEU vs SPY

Quick Verdict

SPY has a lower expense ratio. RFEU delivered stronger 1-year returns. SPY offers more diversification with 503 holdings.

Lower Fees: SPYHigher Returns: RFEUMore Diversified: SPY

Side-by-Side Comparison

MetricRFEUSPYWinner
Expense Ratio0.83%0.09%
AUM$8M$789.1B
Dividend Yield4.64%1.01%
Holdings91505
YTD Return+1.15%+14.47%
1Y Return+28.40%+21.96%
3Y Return (annualized)+13.10%+21.70%
5Y Return (annualized)+6.58%+13.30%
Volatility (annualized)16.1%15.3%
Max Drawdown-42.9%-56.5%
Fund FamilyFirst Trust Portfolios (US)State Street Investment Management
CategoryEquityEquity
InceptionApr 14, 2016Jan 22, 1993

RFEU vs SPY Performance

First Trust RiverFront Dynamic Europe ETF (RFEU) 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 RFEU returned +28.40% while SPY returned +21.96%. Year to date, RFEU is up 1.15% versus a gain of 14.47% for SPY.

Over three years, RFEU compounded at +13.10% per year against +21.70% for SPY; over five years the annualized figures are +6.58% and +13.30% respectively. Across the full 10-year window we track, SPY has the edge at +8.87% annualized vs +7.60%. Past performance does not guarantee future results.

Risk: Volatility and Drawdowns

RFEU has been the more volatile fund, with annualized monthly volatility of 16.1% 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 -42.9% for RFEU 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 0.82. They usually move together, but the gap leaves some room for diversification.

Fees and Cost Over Time

RFEU charges 0.83% per year while SPY charges 0.09%. On a $10,000 position that is $83 vs $9 annually, a gap of $74 per year that compounds over a long holding period. On income, RFEU currently yields 4.64% against 1.01% for SPY.

Holdings Overlap

0.0%overlap

RFEU and SPY share 0 holdings out of 589 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, RFEU or SPY?

RFEU has an expense ratio of 0.83% while SPY charges 0.09%. SPY is the cheaper option. On a $10,000 investment, that is $74 per year of difference.

Which performed better, RFEU or SPY?

Over the past year RFEU returned +28.40% vs +21.96% for SPY, so RFEU leads on 1-year performance. Over the longest common window we track (10 years), RFEU annualized +7.60% vs +8.87% for SPY. Past performance does not guarantee future results.

Which is riskier, RFEU or SPY?

RFEU has been the more volatile fund at 16.1% annualized versus 15.3% for SPY. Worst drawdown: RFEU -42.9% vs SPY -56.5%.

Should I hold both RFEU and SPY?

RFEU and SPY have a monthly-return correlation of 0.82, so combining them can provide real diversification depending on your allocation goals.

What is the holdings overlap between RFEU and SPY?

RFEU and SPY share 0 common holdings with a 0.0% weight overlap. Combined, they hold 589 unique securities.

Which pays a higher dividend, RFEU or SPY?

RFEU yields 4.64% while SPY yields 1.01%, so RFEU currently pays the higher dividend yield.

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