SCD vs SPY
LMP Capital and Income Fund Inc. 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 | SCD | SPY | Winner |
|---|---|---|---|
| Expense Ratio | 2.67% | 0.09% | |
| AUM | $397M | $789.1B | |
| Dividend Yield | 8.33% | 1.01% | |
| Holdings | 158 | 505 | |
| YTD Return | +10.59% | +13.75% | |
| 1Y Return | +13.28% | +22.91% | |
| 3Y Return (annualized) | +17.52% | +21.67% | |
| 5Y Return (annualized) | +11.26% | +13.32% | |
| Volatility (annualized) | 20.9% | 15.3% | |
| Max Drawdown | -71.3% | -56.5% | |
| Fund Family | Franklin Templeton Investments (US) | State Street Investment Management | |
| Category | Allocation/Balanced | Equity | |
| Inception | Feb 24, 2004 | Jan 22, 1993 |
SCD vs SPY Performance
LMP Capital and Income Fund Inc. (SCD) 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 SCD returned +13.28% while SPY returned +22.91%. Year to date, SCD is up 10.59% versus a gain of 13.75% for SPY.
Over three years, SCD compounded at +17.52% per year against +21.67% for SPY; over five years the annualized figures are +11.26% and +13.32% respectively. Across the full 23-year window we track, SPY has the edge at +8.85% annualized vs +1.17%. Past performance does not guarantee future results.
Risk: Volatility and Drawdowns
SCD has been the more volatile fund, with annualized monthly volatility of 20.9% 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 -71.3% for SCD 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 0.81. They usually move together, but the gap leaves some room for diversification.
Fees and Cost Over Time
SCD charges 2.67% per year while SPY charges 0.09%. On a $10,000 position that is $267 vs $9 annually, a gap of $258 per year that compounds over a long holding period. On income, SCD currently yields 8.33% against 1.01% for SPY.
Holdings Overlap
SCD and SPY share 52 holdings out of 590 unique holdings combined, representing a 25.3% weight overlap.
Moderate overlap means holding both could provide meaningful diversification benefits.
Frequently Asked Questions
Which is cheaper, SCD or SPY?
SCD has an expense ratio of 2.67% while SPY charges 0.09%. SPY is the cheaper option. On a $10,000 investment, that is $258 per year of difference.
Which performed better, SCD or SPY?
Over the past year SCD returned +13.28% vs +22.91% for SPY, so SPY leads on 1-year performance. Over the longest common window we track (23 years), SCD annualized +1.17% vs +8.85% for SPY. Past performance does not guarantee future results.
Which is riskier, SCD or SPY?
SCD has been the more volatile fund at 20.9% annualized versus 15.3% for SPY. Worst drawdown: SCD -71.3% vs SPY -56.5%.
Should I hold both SCD and SPY?
SCD and SPY have a monthly-return correlation of 0.81, so combining them can provide real diversification depending on your allocation goals.
What is the holdings overlap between SCD and SPY?
SCD and SPY share 52 common holdings with a 25.3% weight overlap. Combined, they hold 590 unique securities.
Which pays a higher dividend, SCD or SPY?
SCD yields 8.33% while SPY yields 1.01%, so SCD currently pays the higher dividend yield.
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