RW vs SPY
Rainwater Equity ETF vs State Street SPDR S&P 500 ETF Trust
Quick Verdict
SPY has a lower expense ratio. SPY delivered stronger 1-year returns. SPY offers more diversification with 505 holdings.
Side-by-Side Comparison
| Metric | RW | SPY | Winner |
|---|---|---|---|
| Expense Ratio | 0.95% | 0.09% | |
| AUM | $18M | $821.1B | |
| Dividend Yield | 0.10% | 1.01% | |
| Holdings | 33 | 505 | |
| YTD Return | +1.69% | +12.22% | |
| 1Y Return | +0.62% | +20.83% | |
| 3Y Return (annualized) | - | +21.70% | |
| 5Y Return (annualized) | - | +12.98% | |
| Volatility (annualized) | 12.6% | 15.3% | |
| Max Drawdown | -17.0% | -56.5% | |
| Fund Family | Rainwater ETFs | State Street Investment Management | |
| Category | Equity | Equity | |
| Inception | Jun 17, 2025 | Jan 22, 1993 |
RW vs SPY Performance
Rainwater Equity ETF (RW) is a ETF from Rainwater ETFs and State Street SPDR S&P 500 ETF Trust (SPY) is a ETF from State Street Investment Management. Over the past year RW returned +0.62% while SPY returned +20.83%. Year to date, RW is up 1.69% versus a gain of 12.22% for SPY.
Risk: Volatility and Drawdowns
SPY has been the more volatile fund, with annualized monthly volatility of 15.3% compared with 12.6% for RW. 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 -17.0% for RW 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 0.86. They usually move together, but the gap leaves some room for diversification.
Fees and Cost Over Time
RW 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, RW currently yields 0.10% against 1.01% for SPY.
Holdings Overlap
RW and SPY share 18 holdings out of 518 unique holdings combined, representing a 17.5% weight overlap.
Moderate overlap means holding both could provide meaningful diversification benefits.
Frequently Asked Questions
Which is cheaper, RW or SPY?
RW 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, RW or SPY?
Over the past year RW returned +0.62% vs +20.83% for SPY, so SPY leads on 1-year performance. Over the longest common window we track (1 years), RW annualized +1.52% vs +8.79% for SPY. Past performance does not guarantee future results.
Which is riskier, RW or SPY?
SPY has been the more volatile fund at 15.3% annualized versus 12.6% for RW. Worst drawdown: RW -17.0% vs SPY -56.5%.
Should I hold both RW and SPY?
RW and SPY have a monthly-return correlation of 0.86, so combining them can provide real diversification depending on your allocation goals.
What is the holdings overlap between RW and SPY?
RW and SPY share 18 common holdings with a 17.5% weight overlap. Combined, they hold 518 unique securities.
Which pays a higher dividend, RW or SPY?
RW yields 0.10% while SPY yields 1.01%, so SPY currently pays the higher dividend yield.
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