SPY vs SWZ
State Street SPDR S&P 500 ETF Trust vs Total Return Securities Fund
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 | SPY | SWZ | Winner |
|---|---|---|---|
| Expense Ratio | 0.09% | 1.62% | |
| AUM | $821.1B | $96M | |
| Dividend Yield | 1.01% | 0.00% | |
| Holdings | 505 | 27 | |
| YTD Return | +12.68% | -4.82% | |
| 1Y Return | +21.82% | -2.15% | |
| 3Y Return (annualized) | +21.98% | +6.57% | |
| 5Y Return (annualized) | +12.89% | +2.35% | |
| Volatility (annualized) | 15.3% | 27.8% | |
| Max Drawdown | -56.5% | -57.7% | |
| Fund Family | State Street Investment Management | Total Return Securities Fund | |
| Category | Equity | Equity | |
| Inception | Jan 22, 1993 | Aug 27, 1987 |
SPY vs SWZ Performance
State Street SPDR S&P 500 ETF Trust (SPY) is a ETF from State Street Investment Management and Total Return Securities Fund (SWZ) is a ETF from Total Return Securities Fund. Over the past year SPY returned +21.82% while SWZ returned -2.15%. Year to date, SPY is up 12.68% versus a loss of 4.82% for SWZ.
Over three years, SPY compounded at +21.98% per year against +6.57% for SWZ; over five years the annualized figures are +12.89% and +2.35% respectively. Across the full 31-year window we track, SWZ has the edge at +11.57% annualized vs +8.81%. Past performance does not guarantee future results.
Risk: Volatility and Drawdowns
SWZ has been the more volatile fund, with annualized monthly volatility of 27.8% 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 -56.5% for SPY and -57.7% for SWZ. 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 0.48. They move independently enough that combining them can meaningfully diversify a portfolio.
Fees and Cost Over Time
SPY charges 0.09% per year while SWZ charges 1.62%. On a $10,000 position that is $9 vs $162 annually, a gap of $153 per year that compounds over a long holding period. On income, SPY currently yields 1.01% against 0.00% for SWZ.
Holdings Overlap
SPY and SWZ share 3 holdings out of 525 unique holdings combined, representing a 0.4% weight overlap.
Moderate overlap means holding both could provide meaningful diversification benefits.
Frequently Asked Questions
Which is cheaper, SPY or SWZ?
SPY has an expense ratio of 0.09% while SWZ charges 1.62%. SPY is the cheaper option. On a $10,000 investment, that is $153 per year of difference.
Which performed better, SPY or SWZ?
Over the past year SPY returned +21.82% vs -2.15% for SWZ, so SPY leads on 1-year performance. Over the longest common window we track (31 years), SPY annualized +8.81% vs +11.57% for SWZ. Past performance does not guarantee future results.
Which is riskier, SPY or SWZ?
SWZ has been the more volatile fund at 27.8% annualized versus 15.3% for SPY. Worst drawdown: SPY -56.5% vs SWZ -57.7%.
Should I hold both SPY and SWZ?
SPY and SWZ have a monthly-return correlation of 0.48, so combining them can provide real diversification depending on your allocation goals.
What is the holdings overlap between SPY and SWZ?
SPY and SWZ share 3 common holdings with a 0.4% weight overlap. Combined, they hold 525 unique securities.
Which pays a higher dividend, SPY or SWZ?
SPY yields 1.01% while SWZ yields 0.00%, so SPY currently pays the higher dividend yield.
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