SPAXX vs SPY
Fidelity Government Money Market Fund vs State Street SPDR S&P 500 ETF Trust
Which is better, SPAXX or SPY?
SPY costs less.
SPY has a lower expense ratio.
MarketXLS is not an investment adviser. This comparison is generated automatically from market data and is for information only. A Best mark means the better reading on that one measure, not a recommendation to buy.
Side-by-Side Comparison
| Metric | SPAXX | SPY |
|---|---|---|
| Expense Ratio | 0.42% | 0.09%Best |
| AUM | $423.8B | $804.7B |
| Dividend Yield | 3.15% | 0.98% |
| Holdings | 700 | 505 |
| Fund Family | Fidelity Investments (US) | State Street Investment Management |
| Category | Money Market | Equity |
| Style | - | Large Cap Blend |
| Inception | Feb 5, 1990 | Jan 22, 1993 |
Not shown on this pair: YTD Price Return, 1Y Price Return, 3Y Price Return (annualized), 5Y Price Return (annualized), Volatility (annualized), Max Drawdown, $10,000 over the window, Top 10 Weight.
The two price series end 1626 days apart, so a return over any period would be measuring two different stretches of market. Those rows are withheld. SPAXX has data through Mar 29, 2022 and SPY through Sep 10, 2026.
Fees and Cost Over Time
SPAXX charges 0.42% per year while SPY charges 0.09%. On a $10,000 position that is $42 vs $9 annually, a gap of $33 per year that compounds over a long holding period. On income, SPAXX currently yields 3.15% against 0.98% for SPY.
Structure and taxes
SPAXX is a mutual fund and SPY is an ETF. A mutual fund prices once a day at net asset value and may carry a purchase minimum. An ETF trades through the day at whatever the market pays for it.
In a taxable account the difference that usually matters is distributions. An ETF can meet redemptions in kind, so it rarely has to sell holdings and rarely passes a capital gain to the people who held it; a mutual fund that sells holdings to meet redemptions can distribute a realised gain at year end to everyone still in the fund, whether or not they sold anything themselves. In a tax-deferred account that difference largely disappears. Both are descriptions of how the two wrappers work, not a recommendation.
Tax-loss harvesting works on either wrapper.
Holdings Overlap
We hold position weights for 34 holdings in SPAXX and 504 in SPY, totalling 6.1% and 100.0% of the two funds. The two books name no position in common, so there is no overlap percentage to show.
0 positions in common, counted across the 34 positions we hold weights for in SPAXX and 504 in SPY, against full books of 700 and 505.
You are not choosing between two funds in isolation.
Whichever of SPAXX and SPY you pick has to sit alongside everything else you own. Add the rest and see what the combination actually holds.
Free for up to 10 holdings. No account needed.
Frequently Asked Questions
Which is cheaper, SPAXX or SPY?
SPAXX has an expense ratio of 0.42% while SPY charges 0.09%. SPY is the cheaper option, by $33 a year on a $10,000 investment.
Which pays a higher dividend, SPAXX or SPY?
SPAXX yields 3.15% while SPY yields 0.98%, so SPAXX currently pays the higher dividend yield.
Is it better to hold SPAXX or SPY in a taxable account?
SPY is an ETF and SPAXX is a mutual fund. An ETF can meet redemptions in kind, so it rarely distributes a capital gain to the people holding it. A mutual fund that sells holdings to meet redemptions can pass a realised gain to every holder at year end. In a tax-deferred account that difference largely disappears. This is information, not a recommendation.
Is SPY better than SPAXX?
SPY has a lower expense ratio. Which one suits a particular account depends on what it is for. This is information, not a recommendation.