SMMD vs SPY
iShares Russell 2500 ETF vs State Street SPDR S&P 500 ETF Trust
Quick Verdict
SPY has a lower expense ratio. SMMD delivered stronger 1-year returns. SPY offers more diversification with 503 holdings.
Side-by-Side Comparison
| Metric | SMMD | SPY | Winner |
|---|---|---|---|
| Expense Ratio | 0.15% | 0.09% | |
| AUM | $3.6B | $789.1B | |
| Dividend Yield | 1.05% | 1.01% | |
| Holdings | 520 | 505 | |
| YTD Return | +22.88% | +14.47% | |
| 1Y Return | +30.81% | +21.96% | |
| 3Y Return (annualized) | +18.30% | +21.70% | |
| 5Y Return (annualized) | +8.81% | +13.30% | |
| Volatility (annualized) | 20.5% | 15.3% | |
| Max Drawdown | -41.1% | -56.5% | |
| Fund Family | iShares by BlackRock (US) | State Street Investment Management | |
| Category | Equity | Equity | |
| Inception | Jul 6, 2017 | Jan 22, 1993 |
SMMD vs SPY Performance
iShares Russell 2500 ETF (SMMD) is a ETF from iShares by BlackRock (US) and State Street SPDR S&P 500 ETF Trust (SPY) is a ETF from State Street Investment Management. Over the past year SMMD returned +30.81% while SPY returned +21.96%. Year to date, SMMD is up 22.88% versus a gain of 14.47% for SPY.
Over three years, SMMD compounded at +18.30% per year against +21.70% for SPY; over five years the annualized figures are +8.81% and +13.30% respectively. Across the full 9-year window we track, SMMD has the edge at +10.71% annualized vs +8.87%. Past performance does not guarantee future results.
Risk: Volatility and Drawdowns
SMMD has been the more volatile fund, with annualized monthly volatility of 20.5% 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 -41.1% for SMMD 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 0.90. They move almost in lockstep, so holding both mostly duplicates the same exposure.
Fees and Cost Over Time
SMMD 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, SMMD currently yields 1.05% against 1.01% for SPY.
Holdings Overlap
SMMD and SPY share 4 holdings out of 530 unique holdings combined, representing a 0.1% weight overlap.
Moderate overlap means holding both could provide meaningful diversification benefits.
Frequently Asked Questions
Which is cheaper, SMMD or SPY?
SMMD 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, SMMD or SPY?
Over the past year SMMD returned +30.81% vs +21.96% for SPY, so SMMD leads on 1-year performance. Over the longest common window we track (9 years), SMMD annualized +10.71% vs +8.87% for SPY. Past performance does not guarantee future results.
Which is riskier, SMMD or SPY?
SMMD has been the more volatile fund at 20.5% annualized versus 15.3% for SPY. Worst drawdown: SMMD -41.1% vs SPY -56.5%.
Should I hold both SMMD and SPY?
SMMD and SPY have a monthly-return correlation of 0.90, so they move almost identically. Holding both adds little diversification - most investors pick one, usually on fees or the specific index tracked.
What is the holdings overlap between SMMD and SPY?
SMMD and SPY share 4 common holdings with a 0.1% weight overlap. Combined, they hold 530 unique securities.
Which pays a higher dividend, SMMD or SPY?
SMMD yields 1.05% while SPY yields 1.01%, so SMMD currently pays the higher dividend yield.
Popular ETF Comparisons
Get Full ETF Analytics
Access complete holdings data, overlap analysis, screener tools, and more with FundXLS.