SPAQ vs SPY
Horizon Kinetics SPAC Active ETF 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 505 holdings.
Side-by-Side Comparison
| Metric | SPAQ | SPY | Winner |
|---|---|---|---|
| Expense Ratio | 0.85% | 0.09% | |
| AUM | $10M | $821.1B | |
| Dividend Yield | 16.12% | 1.01% | |
| Holdings | 51 | 505 | |
| YTD Return | +3.39% | +14.24% | |
| 1Y Return | +4.95% | +21.71% | |
| 3Y Return (annualized) | +6.65% | +22.10% | |
| 5Y Return (annualized) | - | +13.21% | |
| Volatility (annualized) | 3.0% | 15.3% | |
| Max Drawdown | -5.3% | -56.5% | |
| Fund Family | Horizon Kinetics LLC | State Street Investment Management | |
| Category | Equity | Equity | |
| Inception | Jan 27, 2023 | Jan 22, 1993 |
SPAQ vs SPY Performance
Horizon Kinetics SPAC Active ETF (SPAQ) is a ETF from Horizon Kinetics LLC and State Street SPDR S&P 500 ETF Trust (SPY) is a ETF from State Street Investment Management. Over the past year SPAQ returned +4.95% while SPY returned +21.71%. Year to date, SPAQ is up 3.39% versus a gain of 14.24% for SPY.
Over three years, SPAQ compounded at +6.65% per year against +22.10% for SPY. Across the full 4-year window we track, SPY has the edge at +8.86% annualized vs +6.71%. 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 3.0% for SPAQ. 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 -5.3% for SPAQ 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 -0.03. They move independently enough that combining them can meaningfully diversify a portfolio.
Fees and Cost Over Time
SPAQ charges 0.85% per year while SPY charges 0.09%. On a $10,000 position that is $85 vs $9 annually, a gap of $76 per year that compounds over a long holding period. On income, SPAQ currently yields 16.12% against 1.01% for SPY.
Holdings Overlap
SPAQ and SPY share 0 holdings out of 551 unique holdings combined, representing a 0.0% weight overlap.
Moderate overlap means holding both could provide meaningful diversification benefits.
Frequently Asked Questions
Which is cheaper, SPAQ or SPY?
SPAQ has an expense ratio of 0.85% while SPY charges 0.09%. SPY is the cheaper option. On a $10,000 investment, that is $76 per year of difference.
Which performed better, SPAQ or SPY?
Over the past year SPAQ returned +4.95% vs +21.71% for SPY, so SPY leads on 1-year performance. Over the longest common window we track (4 years), SPAQ annualized +6.71% vs +8.86% for SPY. Past performance does not guarantee future results.
Which is riskier, SPAQ or SPY?
SPY has been the more volatile fund at 15.3% annualized versus 3.0% for SPAQ. Worst drawdown: SPAQ -5.3% vs SPY -56.5%.
Should I hold both SPAQ and SPY?
SPAQ and SPY have a monthly-return correlation of -0.03, so combining them can provide real diversification depending on your allocation goals.
What is the holdings overlap between SPAQ and SPY?
SPAQ and SPY share 0 common holdings with a 0.0% weight overlap. Combined, they hold 551 unique securities.
Which pays a higher dividend, SPAQ or SPY?
SPAQ yields 16.12% while SPY yields 1.01%, so SPAQ currently pays the higher dividend yield.
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