RND vs SPY

RND vs SPY

Which is better, RND or SPY?

Each has led over a different period.

SPY has a lower expense ratio. RND led over the full window, SPY over 1Y. The two have moved almost in lockstep, correlation 0.92. SPY is less concentrated, with 37.8% of the fund in its ten largest positions against 62.5%.

Lower Fees: SPYHigher Returns: splitLess Concentrated: SPY

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

MetricRNDSPY
Expense Ratio0.60%0.09%Best
AUM$10M$804.7B
Dividend Yield0.00%0.98%
Holdings100505
YTD Return+6.56%+10.96%Best
1Y Return+9.87%+15.52%Best
3Y Return (annualized)-+20.73%
5Y Return (annualized)-+12.53%
Volatility (annualized)16.0%11.9%Best
Max Drawdown-23.5%-18.8%Best
$10,000 over 2.4 years$16,577Best$15,545
Top 10 Weight62.5%37.8%Best
Fund FamilyFirst Trust Portfolios (US)State Street Investment Management
CategoryEquityEquity
StyleLarge Cap BlendLarge Cap Blend
InceptionApr 30, 2024Jan 22, 1993

Volatility and max drawdown, and the $10,000 over 2.4 years row, are measured over the window both funds cover: May 1, 2024 to Sep 16, 2026 (2.4 years).

RND 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 2.4 years both funds cover.

RND vs SPY Performance

First Trust Bloomberg R&D Leaders ETF (RND) is an ETF from First Trust Portfolios (US) and State Street SPDR S&P 500 ETF Trust (SPY) is an ETF from State Street Investment Management. Over the past year RND returned +9.87% while SPY returned +15.52%. Year to date, RND is up 6.56% versus a gain of 10.96% for SPY.

Past performance does not guarantee future results.

Risk: Volatility and Drawdowns

RND has been the more volatile fund, with annualized monthly volatility of 16.0% compared with 11.9% 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 -23.5% for RND and -18.8% 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 0.92. They move almost in lockstep, so holding both mostly duplicates the same exposure.

Fees and Cost Over Time

RND charges 0.60% per year while SPY charges 0.09%. On a $10,000 position that is $60 vs $9 annually, a gap of $51 per year that compounds over a long holding period. On income, RND currently yields 0.00% against 0.98% for SPY.

Holdings Overlap

RND already in SPY97.3%
SPY already in RND45.7%

97.3% of RND's money is in holdings SPY also owns. 45.7% of SPY's money is in holdings RND also owns.

Most of RND is already inside SPY. Owning both mostly buys the same companies twice.

47 positions in common, counted across the 49 positions we hold weights for in RND and 504 in SPY, against full books of 100 and 505.

What only one of them owns

Our book lists 450 positions for SPY that do not appear in our book for RND (53.6% of the fund), and 1 for RND that do not appear in SPY (0.1%).

Some of those will be the same company recorded under a different code in one of the two books, so the real difference in what you would own is no larger than this and may be smaller. We do not name the individual positions here for that reason.

Top Shared Holdings

StockWeight in RNDWeight in SPYDifference
NVDANvidia Corp8.57%8.01%0.56%
MSFTMicrosoft Corp10.56%5.66%4.90%
AAPLApple, Inc8.50%7.26%1.24%
AMZNAmazon.Com Inc8.46%3.79%4.67%
GOOGLAlphabet Inc,class A7.37%2.99%4.38%
AVGOBroadcom Inc3.81%2.66%1.15%
METAMeta Platforms Inc3.95%1.93%2.02%
LLYEli Lilly & Co.3.74%1.40%2.34%
TSLATesla Inc3.40%1.52%1.88%
AMGNAmgen Inc.4.08%0.36%3.72%

97.3% of RND 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.

RNDSPY

Free for up to 10 holdings. No account needed.

Frequently Asked Questions

Which is cheaper, RND or SPY?

RND has an expense ratio of 0.60% while SPY charges 0.09%. SPY is the cheaper option, by $51 a year on a $10,000 investment.

Which performed better, RND or SPY?

Over the past year RND returned +9.87% vs +15.52% for SPY, so SPY leads on 1-year performance. Over the longest common window we track (2 years), RND annualized +23.44% vs +20.18% for SPY. Past performance does not guarantee future results. This is information, not a recommendation.

Which is riskier, RND or SPY?

RND has been the more volatile fund at 16.0% annualized versus 11.9% for SPY. Worst drawdown: RND -23.5% vs SPY -18.8%.

Should I hold both RND and SPY?

RND and SPY have a monthly-return correlation of 0.92, so they move almost identically. What is left to separate them is the fee and the index each one tracks. This is information, not a recommendation.

What is the holdings overlap between RND and SPY?

97.3% of RND's money is in holdings SPY also owns. 45.7% of SPY's is in holdings RND also owns. They hold 47 positions in common, counted across the 49 positions we hold weights for in RND and 504 in SPY.

Which pays a higher dividend, RND or SPY?

RND yields 0.00% while SPY yields 0.98%, so SPY currently pays the higher dividend yield.

Is SPY better than RND?

SPY has a lower expense ratio. RND led over the full window, SPY over 1Y. The two have moved almost in lockstep, correlation 0.92. SPY is less concentrated, with 37.8% of the fund in its ten largest positions against 62.5%. Which one suits a particular account depends on what it is for. This is information, not a recommendation.