RNEM vs SPY
First Trust Emerging Markets Equity Select ETF vs State Street SPDR S&P 500 ETF Trust
Which is better, RNEM or SPY?
Large Cap Value against Large Cap Blend.
SPY has a lower expense ratio. SPY led over 1Y, 3Y, 5Y and the full window. RNEM is less concentrated, with 27.1% of the fund in its ten largest positions against 38.0%.
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
| Metric | RNEM | SPY |
|---|---|---|
| Expense Ratio | 0.75% | 0.09%Best |
| AUM | $17M | $814.4B |
| Dividend Yield | 2.27% | 1.01% |
| Holdings | 311 | 505 |
| YTD Return | +4.25% | +13.34%Best |
| 1Y Return | +9.49% | +19.97%Best |
| 3Y Return (annualized) | +8.31% | +21.20%Best |
| 5Y Return (annualized) | +5.72% | +12.81%Best |
| Volatility (annualized) | 14.3%Best | 15.9% |
| Max Drawdown | -42.3% | -34.1%Best |
| $10,000 over 5 years | $13,206 | $18,270Best |
| Top 10 Weight | 27.1%Best | 38.0% |
| Fund Family | First Trust Portfolios (US) | State Street Investment Management |
| Category | Equity | Equity |
| Style | Large Cap Value | Large Cap Blend |
| Inception | Jun 20, 2017 | Jan 22, 1993 |
Volatility and max drawdown are measured over the window both funds cover: Jun 23, 2017 to Sep 4, 2026 (9.2 years).
RNEM 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 9.2 years both funds cover.
RNEM vs SPY Performance
First Trust Emerging Markets Equity Select ETF (RNEM) 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 RNEM returned +9.49% while SPY returned +19.97%. Year to date, RNEM is up 4.25% versus a gain of 13.34% for SPY.
Over three years, RNEM compounded at +8.31% per year against +21.20% for SPY; over five years the annualized figures are +5.72% and +12.81% respectively. Across the full 9-year window we track, SPY has the edge at +14.27% annualized vs +3.25%.
Past performance does not guarantee future results.
Risk: Volatility and Drawdowns
SPY has been the more volatile fund, with annualized monthly volatility of 15.9% compared with 14.3% for RNEM. 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 -42.3% for RNEM and -34.1% 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 0.65. They move together some of the time, and apart the rest.
Fees and Cost Over Time
RNEM charges 0.75% per year while SPY charges 0.09%. On a $10,000 position that is $75 vs $9 annually, a gap of $66 per year that compounds over a long holding period. On income, RNEM currently yields 2.27% against 1.01% for SPY.
Holdings Overlap
0.1% of RNEM's money is in holdings SPY also owns.
We cannot see either book well enough to say how much of this pair is duplicated.
1 positions in common, counted across the 287 positions we hold weights for in RNEM and 503 in SPY, against full books of 311 and 505.
What only one of them owns
Our book lists 492 positions for SPY that do not appear in our book for RNEM (99.4% of the fund), and 7 for RNEM that do not appear in SPY (1.3%).
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
| Stock | Weight in RNEM | Weight in SPY | Difference |
|---|---|---|---|
| LHLaboratory Corporation of America Holdings | 0.07% | 0.04% | 0.03% |
You are not choosing between two funds in isolation.
Whichever of RNEM and SPY you pick has to sit alongside everything else you own. Add the rest and see what the combination actually holds.
Free for up to 10 holdings. No account needed.
Frequently Asked Questions
Which is cheaper, RNEM or SPY?
RNEM has an expense ratio of 0.75% while SPY charges 0.09%. SPY is the cheaper option, by $66 a year on a $10,000 investment.
Which performed better, RNEM or SPY?
Over the past year RNEM returned +9.49% vs +19.97% for SPY, so SPY leads on 1-year performance. Over the longest common window we track (9 years), RNEM annualized +3.25% vs +14.27% for SPY. Past performance does not guarantee future results. This is information, not a recommendation.
Which is riskier, RNEM or SPY?
SPY has been the more volatile fund at 15.9% annualized versus 14.3% for RNEM. Worst drawdown: RNEM -42.3% vs SPY -34.1%.
Should I hold both RNEM and SPY?
RNEM and SPY have a monthly-return correlation of 0.65, so their returns are far enough apart for the mix to behave differently from either one alone. This is information, not a recommendation.
Which pays a higher dividend, RNEM or SPY?
RNEM yields 2.27% while SPY yields 1.01%, so RNEM currently pays the higher dividend yield.
Is SPY better than RNEM?
SPY has a lower expense ratio. SPY led over 1Y, 3Y, 5Y and the full window. RNEM is less concentrated, with 27.1% of the fund in its ten largest positions against 38.0%. Which one suits a particular account depends on what it is for. This is information, not a recommendation.