SPE vs SPY

Quick Verdict

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

Lower Fees: SPYHigher Returns: SPYMore Diversified: SPY

Side-by-Side Comparison

MetricSPESPYWinner
Expense Ratio4.89%0.09%
AUM$171M$789.1B
Dividend Yield8.31%1.01%
Holdings158505
YTD Return-3.15%+13.75%
1Y Return-4.00%+22.91%
3Y Return (annualized)+15.35%+21.67%
5Y Return (annualized)+7.11%+13.32%
Volatility (annualized)13.8%15.3%
Max Drawdown-58.5%-56.5%
Fund FamilySpecial Opportunities FundState Street Investment Management
CategoryAllocation/BalancedEquity
InceptionJun 8, 1993Jan 22, 1993

SPE vs SPY Performance

Special Opportunities Fund Inc (SPE) is a ETF from Special Opportunities Fund and State Street SPDR S&P 500 ETF Trust (SPY) is a ETF from State Street Investment Management. Over the past year SPE returned -4.00% while SPY returned +22.91%. Year to date, SPE is down 3.15% versus a gain of 13.75% for SPY.

Over three years, SPE compounded at +15.35% per year against +21.67% for SPY; over five years the annualized figures are +7.11% and +13.32% respectively. Across the full 31-year window we track, SPY has the edge at +8.85% annualized vs +2.06%. 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 13.8% for SPE. 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 -58.5% for SPE 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 0.55. They move independently enough that combining them can meaningfully diversify a portfolio.

Fees and Cost Over Time

SPE charges 4.89% per year while SPY charges 0.09%. On a $10,000 position that is $489 vs $9 annually, a gap of $480 per year that compounds over a long holding period. On income, SPE currently yields 8.31% against 1.01% for SPY.

Holdings Overlap

0.0%overlap

SPE and SPY share 1 holdings out of 606 unique holdings combined, representing a 0.0% weight overlap.

Moderate overlap means holding both could provide meaningful diversification benefits.

Top Shared Holdings

StockWeight in SPEWeight in SPYDifference
TPL3.98%0.04%3.94%

Frequently Asked Questions

Which is cheaper, SPE or SPY?

SPE has an expense ratio of 4.89% while SPY charges 0.09%. SPY is the cheaper option. On a $10,000 investment, that is $480 per year of difference.

Which performed better, SPE or SPY?

Over the past year SPE returned -4.00% vs +22.91% for SPY, so SPY leads on 1-year performance. Over the longest common window we track (31 years), SPE annualized +2.06% vs +8.85% for SPY. Past performance does not guarantee future results.

Which is riskier, SPE or SPY?

SPY has been the more volatile fund at 15.3% annualized versus 13.8% for SPE. Worst drawdown: SPE -58.5% vs SPY -56.5%.

Should I hold both SPE and SPY?

SPE and SPY have a monthly-return correlation of 0.55, so combining them can provide real diversification depending on your allocation goals.

What is the holdings overlap between SPE and SPY?

SPE and SPY share 1 common holdings with a 0.0% weight overlap. Combined, they hold 606 unique securities.

Which pays a higher dividend, SPE or SPY?

SPE yields 8.31% while SPY yields 1.01%, so SPE currently pays the higher dividend yield.

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