SABA vs SPY
Saba Capital Income & Opportunities Fund II 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 503 holdings.
Side-by-Side Comparison
| Metric | SABA | SPY | Winner |
|---|---|---|---|
| Expense Ratio | 0.71% | 0.09% | |
| AUM | $255M | $789.1B | |
| Dividend Yield | 8.41% | 1.01% | |
| Holdings | 740 | 505 | |
| YTD Return | +5.52% | +13.75% | |
| 1Y Return | -1.75% | +22.91% | |
| 3Y Return (annualized) | +9.94% | +21.67% | |
| 5Y Return (annualized) | +3.58% | +13.32% | |
| Volatility (annualized) | 13.2% | 15.3% | |
| Max Drawdown | -62.0% | -56.5% | |
| Fund Family | Saba Capital | State Street Investment Management | |
| Category | Fixed Income | Equity | |
| Inception | Mar 17, 1988 | Jan 22, 1993 |
SABA vs SPY Performance
Saba Capital Income & Opportunities Fund II (SABA) is a ETF from Saba Capital and State Street SPDR S&P 500 ETF Trust (SPY) is a ETF from State Street Investment Management. Over the past year SABA returned -1.75% while SPY returned +22.91%. Year to date, SABA is up 5.52% versus a gain of 13.75% for SPY.
Over three years, SABA compounded at +9.94% per year against +21.67% for SPY; over five years the annualized figures are +3.58% and +13.32% respectively. Across the full 31-year window we track, SPY has the edge at +8.85% annualized vs -0.17%. Past performance does not guarantee future results.
Risk: Volatility and Drawdowns
SPY has been the more volatile fund, with annualized monthly volatility of 15.3% compared with 13.2% for SABA. 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 -62.0% for SABA 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 0.42. They move independently enough that combining them can meaningfully diversify a portfolio.
Fees and Cost Over Time
SABA charges 0.71% per year while SPY charges 0.09%. On a $10,000 position that is $71 vs $9 annually, a gap of $62 per year that compounds over a long holding period. On income, SABA currently yields 8.41% against 1.01% for SPY.
Holdings Overlap
SABA and SPY share 76 holdings out of 806 unique holdings combined, representing a 0.3% weight overlap.
Moderate overlap means holding both could provide meaningful diversification benefits.
Frequently Asked Questions
Which is cheaper, SABA or SPY?
SABA has an expense ratio of 0.71% while SPY charges 0.09%. SPY is the cheaper option. On a $10,000 investment, that is $62 per year of difference.
Which performed better, SABA or SPY?
Over the past year SABA returned -1.75% vs +22.91% for SPY, so SPY leads on 1-year performance. Over the longest common window we track (31 years), SABA annualized -0.17% vs +8.85% for SPY. Past performance does not guarantee future results.
Which is riskier, SABA or SPY?
SPY has been the more volatile fund at 15.3% annualized versus 13.2% for SABA. Worst drawdown: SABA -62.0% vs SPY -56.5%.
Should I hold both SABA and SPY?
SABA and SPY have a monthly-return correlation of 0.42, so combining them can provide real diversification depending on your allocation goals.
What is the holdings overlap between SABA and SPY?
SABA and SPY share 76 common holdings with a 0.3% weight overlap. Combined, they hold 806 unique securities.
Which pays a higher dividend, SABA or SPY?
SABA yields 8.41% while SPY yields 1.01%, so SABA currently pays the higher dividend yield.
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