SPY vs SQMX
State Street SPDR S&P 500 ETF Trust vs FT Vest US Equity Quarterly Max Buffer ETF
Quick Verdict
SPY has a lower expense ratio. SPY delivered stronger 1-year returns. SPY offers more diversification with 503 holdings.
Side-by-Side Comparison
| Metric | SPY | SQMX | Winner |
|---|---|---|---|
| Expense Ratio | 0.09% | 0.85% | |
| AUM | $789.1B | $54M | |
| Dividend Yield | 1.01% | 0.00% | |
| Holdings | 505 | 5 | |
| YTD Return | +14.47% | +4.08% | |
| 1Y Return | +21.96% | +7.73% | |
| 3Y Return (annualized) | +21.70% | - | |
| 5Y Return (annualized) | +13.30% | - | |
| Volatility (annualized) | 15.3% | 2.9% | |
| Max Drawdown | -56.5% | -7.4% | |
| Fund Family | State Street Investment Management | First Trust Portfolios (US) | |
| Category | Equity | Alternative | |
| Inception | Jan 22, 1993 | Dec 20, 2024 |
SPY vs SQMX Performance
State Street SPDR S&P 500 ETF Trust (SPY) is a ETF from State Street Investment Management and FT Vest US Equity Quarterly Max Buffer ETF (SQMX) is a ETF from First Trust Portfolios (US). Over the past year SPY returned +21.96% while SQMX returned +7.73%. Year to date, SPY is up 14.47% versus a gain of 4.08% for SQMX.
Risk: Volatility and Drawdowns
SPY has been the more volatile fund, with annualized monthly volatility of 15.3% compared with 2.9% for SQMX. 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 -56.5% for SPY and -7.4% for SQMX. 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 0.89. They usually move together, but the gap leaves some room for diversification.
Fees and Cost Over Time
SPY charges 0.09% per year while SQMX charges 0.85%. On a $10,000 position that is $9 vs $85 annually, a gap of $76 per year that compounds over a long holding period. On income, SPY currently yields 1.01% against 0.00% for SQMX.
Holdings Overlap
SPY and SQMX share 0 holdings out of 504 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, SPY or SQMX?
SPY has an expense ratio of 0.09% while SQMX charges 0.85%. SPY is the cheaper option. On a $10,000 investment, that is $76 per year of difference.
Which performed better, SPY or SQMX?
Over the past year SPY returned +21.96% vs +7.73% for SQMX, so SPY leads on 1-year performance. Over the longest common window we track (2 years), SPY annualized +8.87% vs +7.62% for SQMX. Past performance does not guarantee future results.
Which is riskier, SPY or SQMX?
SPY has been the more volatile fund at 15.3% annualized versus 2.9% for SQMX. Worst drawdown: SPY -56.5% vs SQMX -7.4%.
Should I hold both SPY and SQMX?
SPY and SQMX have a monthly-return correlation of 0.89, so combining them can provide real diversification depending on your allocation goals.
What is the holdings overlap between SPY and SQMX?
SPY and SQMX share 0 common holdings with a 0.0% weight overlap. Combined, they hold 504 unique securities.
Which pays a higher dividend, SPY or SQMX?
SPY yields 1.01% while SQMX yields 0.00%, so SPY currently pays the higher dividend yield.
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