RMT vs SPY
Royce Micro-Cap Trust Inc. vs State Street SPDR S&P 500 ETF Trust
Quick Verdict
SPY has a lower expense ratio. RMT delivered stronger 1-year returns. SPY offers more diversification with 505 holdings.
Side-by-Side Comparison
| Metric | RMT | SPY | Winner |
|---|---|---|---|
| Expense Ratio | 1.35% | 0.09% | |
| AUM | $477M | $821.1B | |
| Dividend Yield | 5.36% | 1.01% | |
| Holdings | 176 | 505 | |
| YTD Return | +39.48% | +13.17% | |
| 1Y Return | +57.07% | +21.53% | |
| 3Y Return (annualized) | +26.90% | +22.06% | |
| 5Y Return (annualized) | +13.89% | +13.35% | |
| Volatility (annualized) | 23.5% | 15.3% | |
| Max Drawdown | -80.4% | -56.5% | |
| Fund Family | Franklin Templeton Investments (US) | State Street Investment Management | |
| Category | Equity | Equity | |
| Inception | Dec 14, 1993 | Jan 22, 1993 |
RMT vs SPY Performance
Royce Micro-Cap Trust Inc. (RMT) is a ETF from Franklin Templeton Investments (US) and State Street SPDR S&P 500 ETF Trust (SPY) is a ETF from State Street Investment Management. Over the past year RMT returned +57.07% while SPY returned +21.53%. Year to date, RMT is up 39.48% versus a gain of 13.17% for SPY.
Over three years, RMT compounded at +26.90% per year against +22.06% for SPY; over five years the annualized figures are +13.89% and +13.35% respectively. Across the full 23-year window we track, SPY has the edge at +8.82% annualized vs +2.32%. Past performance does not guarantee future results.
Risk: Volatility and Drawdowns
RMT has been the more volatile fund, with annualized monthly volatility of 23.5% 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 -80.4% for RMT 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 0.84. They usually move together, but the gap leaves some room for diversification.
Fees and Cost Over Time
RMT charges 1.35% per year while SPY charges 0.09%. On a $10,000 position that is $135 vs $9 annually, a gap of $126 per year that compounds over a long holding period. On income, RMT currently yields 5.36% against 1.01% for SPY.
Holdings Overlap
RMT and SPY share 1 holdings out of 677 unique holdings combined, representing a 0.1% weight overlap.
Moderate overlap means holding both could provide meaningful diversification benefits.
Top Shared Holdings
| Stock | Weight in RMT | Weight in SPY | Difference |
|---|---|---|---|
| CMG | 0.17% | 0.07% | 0.10% |
Frequently Asked Questions
Which is cheaper, RMT or SPY?
RMT has an expense ratio of 1.35% while SPY charges 0.09%. SPY is the cheaper option. On a $10,000 investment, that is $126 per year of difference.
Which performed better, RMT or SPY?
Over the past year RMT returned +57.07% vs +21.53% for SPY, so RMT leads on 1-year performance. Over the longest common window we track (23 years), RMT annualized +2.32% vs +8.82% for SPY. Past performance does not guarantee future results.
Which is riskier, RMT or SPY?
RMT has been the more volatile fund at 23.5% annualized versus 15.3% for SPY. Worst drawdown: RMT -80.4% vs SPY -56.5%.
Should I hold both RMT and SPY?
RMT and SPY have a monthly-return correlation of 0.84, so combining them can provide real diversification depending on your allocation goals.
What is the holdings overlap between RMT and SPY?
RMT and SPY share 1 common holdings with a 0.1% weight overlap. Combined, they hold 677 unique securities.
Which pays a higher dividend, RMT or SPY?
RMT yields 5.36% while SPY yields 1.01%, so RMT currently pays the higher dividend yield.
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