SETM vs SPY

Quick Verdict

SPY has a lower expense ratio. SETM delivered stronger 1-year returns. SPY offers more diversification with 503 holdings.

Lower Fees: SPYHigher Returns: SETMMore Diversified: SPY

Side-by-Side Comparison

MetricSETMSPYWinner
Expense Ratio0.65%0.09%
AUM$522M$789.1B
Dividend Yield1.46%1.01%
Holdings127505
YTD Return+10.44%+13.75%
1Y Return+59.94%+22.91%
3Y Return (annualized)+26.46%+21.67%
5Y Return (annualized)-+13.32%
Volatility (annualized)31.7%15.3%
Max Drawdown-41.8%-56.5%
Fund FamilySprott ETFSState Street Investment Management
CategoryCommodityEquity
InceptionFeb 1, 2023Jan 22, 1993

SETM vs SPY Performance

Sprott Critical Materials ETF (SETM) is a ETF from Sprott ETFS and State Street SPDR S&P 500 ETF Trust (SPY) is a ETF from State Street Investment Management. Over the past year SETM returned +59.94% while SPY returned +22.91%. Year to date, SETM is up 10.44% versus a gain of 13.75% for SPY.

Over three years, SETM compounded at +26.46% per year against +21.67% for SPY. Across the full 4-year window we track, SETM has the edge at +17.54% annualized vs +8.85%. Past performance does not guarantee future results.

Risk: Volatility and Drawdowns

SETM has been the more volatile fund, with annualized monthly volatility of 31.7% 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 -41.8% for SETM 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 0.43. They move independently enough that combining them can meaningfully diversify a portfolio.

Fees and Cost Over Time

SETM charges 0.65% per year while SPY charges 0.09%. On a $10,000 position that is $65 vs $9 annually, a gap of $56 per year that compounds over a long holding period. On income, SETM currently yields 1.46% against 1.01% for SPY.

Holdings Overlap

0.2%overlap

SETM and SPY share 2 holdings out of 624 unique holdings combined, representing a 0.2% weight overlap.

Moderate overlap means holding both could provide meaningful diversification benefits.

Top Shared Holdings

StockWeight in SETMWeight in SPYDifference
FCX:AR5.44%0.14%5.30%
ALB5.25%0.02%5.23%

Frequently Asked Questions

Which is cheaper, SETM or SPY?

SETM has an expense ratio of 0.65% while SPY charges 0.09%. SPY is the cheaper option. On a $10,000 investment, that is $56 per year of difference.

Which performed better, SETM or SPY?

Over the past year SETM returned +59.94% vs +22.91% for SPY, so SETM leads on 1-year performance. Over the longest common window we track (4 years), SETM annualized +17.54% vs +8.85% for SPY. Past performance does not guarantee future results.

Which is riskier, SETM or SPY?

SETM has been the more volatile fund at 31.7% annualized versus 15.3% for SPY. Worst drawdown: SETM -41.8% vs SPY -56.5%.

Should I hold both SETM and SPY?

SETM and SPY have a monthly-return correlation of 0.43, so combining them can provide real diversification depending on your allocation goals.

What is the holdings overlap between SETM and SPY?

SETM and SPY share 2 common holdings with a 0.2% weight overlap. Combined, they hold 624 unique securities.

Which pays a higher dividend, SETM or SPY?

SETM yields 1.46% while SPY yields 1.01%, so SETM currently pays the higher dividend yield.

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