SPY vs TAX
State Street SPDR S&P 500 ETF Trust vs Cambria Tax Aware ETF
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 | TAX | Winner |
|---|---|---|---|
| Expense Ratio | 0.09% | 0.54% | |
| AUM | $821.1B | $26M | |
| Dividend Yield | 1.01% | 0.32% | |
| Holdings | 505 | 101 | |
| YTD Return | +14.24% | +12.11% | |
| 1Y Return | +21.71% | +20.33% | |
| 3Y Return (annualized) | +22.10% | - | |
| 5Y Return (annualized) | +13.21% | - | |
| Volatility (annualized) | 15.3% | 13.3% | |
| Max Drawdown | -56.5% | -18.9% | |
| Fund Family | State Street Investment Management | Cambria Investment Management | |
| Category | Equity | Equity | |
| Inception | Jan 22, 1993 | Dec 18, 2024 |
SPY vs TAX Performance
State Street SPDR S&P 500 ETF Trust (SPY) is a ETF from State Street Investment Management and Cambria Tax Aware ETF (TAX) is a ETF from Cambria Investment Management. Over the past year SPY returned +21.71% while TAX returned +20.33%. Year to date, SPY is up 14.24% versus a gain of 12.11% for TAX.
Risk: Volatility and Drawdowns
SPY has been the more volatile fund, with annualized monthly volatility of 15.3% compared with 13.3% for TAX. 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 -18.9% for TAX. 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 0.92. They move almost in lockstep, so holding both mostly duplicates the same exposure.
Fees and Cost Over Time
SPY charges 0.09% per year while TAX charges 0.54%. On a $10,000 position that is $9 vs $54 annually, a gap of $45 per year that compounds over a long holding period. On income, SPY currently yields 1.01% against 0.32% for TAX.
Holdings Overlap
SPY and TAX share 43 holdings out of 560 unique holdings combined, representing a 8.3% weight overlap.
Moderate overlap means holding both could provide meaningful diversification benefits.
Frequently Asked Questions
Which is cheaper, SPY or TAX?
SPY has an expense ratio of 0.09% while TAX charges 0.54%. SPY is the cheaper option. On a $10,000 investment, that is $45 per year of difference.
Which performed better, SPY or TAX?
Over the past year SPY returned +21.71% vs +20.33% for TAX, so SPY leads on 1-year performance. Over the longest common window we track (2 years), SPY annualized +8.86% vs +18.63% for TAX. Past performance does not guarantee future results.
Which is riskier, SPY or TAX?
SPY has been the more volatile fund at 15.3% annualized versus 13.3% for TAX. Worst drawdown: SPY -56.5% vs TAX -18.9%.
Should I hold both SPY and TAX?
SPY and TAX have a monthly-return correlation of 0.92, so they move almost identically. Holding both adds little diversification - most investors pick one, usually on fees or the specific index tracked.
What is the holdings overlap between SPY and TAX?
SPY and TAX share 43 common holdings with a 8.3% weight overlap. Combined, they hold 560 unique securities.
Which pays a higher dividend, SPY or TAX?
SPY yields 1.01% while TAX yields 0.32%, so SPY currently pays the higher dividend yield.
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