SKOR vs SPY

SKOR vs SPY
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Quick Verdict

SPY has a lower expense ratio. SPY delivered stronger 1-year returns. SKOR offers more diversification with 1,651 holdings.

Lower Fees: SPYHigher Returns: SPYMore Diversified: SKOR

Side-by-Side Comparison

MetricSKORSPYWinner
Expense Ratio0.15%0.09%
AUM$738M$821.1B
Dividend Yield4.71%1.01%
Holdings1,651505
YTD Return+0.40%+12.22%
1Y Return+2.81%+20.83%
3Y Return (annualized)+6.14%+21.70%
5Y Return (annualized)+1.65%+12.98%
Volatility (annualized)4.5%15.3%
Max Drawdown-16.0%-56.5%
Fund FamilyFlexshares TrustState Street Investment Management
CategoryFixed IncomeEquity
InceptionNov 12, 2014Jan 22, 1993

SKOR vs SPY Performance

FlexShares Credit-Scored US Corporate Bond Index Fund (SKOR) is a ETF from Flexshares Trust and State Street SPDR S&P 500 ETF Trust (SPY) is a ETF from State Street Investment Management. Over the past year SKOR returned +2.81% while SPY returned +20.83%. Year to date, SKOR is up 0.40% versus a gain of 12.22% for SPY.

Over three years, SKOR compounded at +6.14% per year against +21.70% for SPY; over five years the annualized figures are +1.65% and +12.98% respectively. Across the full 12-year window we track, SPY has the edge at +8.79% annualized vs +1.46%. 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 4.5% for SKOR. 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 -16.0% for SKOR 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 0.51. They move independently enough that combining them can meaningfully diversify a portfolio.

Fees and Cost Over Time

SKOR charges 0.15% per year while SPY charges 0.09%. On a $10,000 position that is $15 vs $9 annually, a gap of $6 per year that compounds over a long holding period. On income, SKOR currently yields 4.71% against 1.01% for SPY.

Holdings Overlap

0.2%overlap

SKOR and SPY share 3 holdings out of 2013 unique holdings combined, representing a 0.2% weight overlap.

Moderate overlap means holding both could provide meaningful diversification benefits.

Top Shared Holdings

StockWeight in SKORWeight in SPYDifference
AON0.08%0.11%0.03%
KDP0.06%0.06%0.00%
HUBB0.06%0.04%0.02%

Frequently Asked Questions

Which is cheaper, SKOR or SPY?

SKOR has an expense ratio of 0.15% while SPY charges 0.09%. SPY is the cheaper option. On a $10,000 investment, that is $6 per year of difference.

Which performed better, SKOR or SPY?

Over the past year SKOR returned +2.81% vs +20.83% for SPY, so SPY leads on 1-year performance. Over the longest common window we track (12 years), SKOR annualized +1.46% vs +8.79% for SPY. Past performance does not guarantee future results.

Which is riskier, SKOR or SPY?

SPY has been the more volatile fund at 15.3% annualized versus 4.5% for SKOR. Worst drawdown: SKOR -16.0% vs SPY -56.5%.

Should I hold both SKOR and SPY?

SKOR and SPY have a monthly-return correlation of 0.51, so combining them can provide real diversification depending on your allocation goals.

What is the holdings overlap between SKOR and SPY?

SKOR and SPY share 3 common holdings with a 0.2% weight overlap. Combined, they hold 2013 unique securities.

Which pays a higher dividend, SKOR or SPY?

SKOR yields 4.71% while SPY yields 1.01%, so SKOR currently pays the higher dividend yield.

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