SPY vs TDF
State Street SPDR S&P 500 ETF Trust vs Templeton Dragon 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 | TDF | Winner |
|---|---|---|---|
| Expense Ratio | 0.09% | 1.33% | |
| AUM | $821.1B | $5,054.4 | |
| Dividend Yield | 1.01% | 3.61% | |
| Holdings | 505 | 68 | |
| YTD Return | +12.93% | -4.56% | |
| 1Y Return | +20.62% | +6.31% | |
| 3Y Return (annualized) | +22.00% | +10.25% | |
| 5Y Return (annualized) | +13.33% | -5.95% | |
| Volatility (annualized) | 15.3% | 26.9% | |
| Max Drawdown | -56.5% | -75.1% | |
| Fund Family | State Street Investment Management | Franklin Templeton Investments (US) | |
| Category | Equity | Equity | |
| Inception | Jan 22, 1993 | Sep 8, 1994 |
SPY vs TDF Performance
State Street SPDR S&P 500 ETF Trust (SPY) is a ETF from State Street Investment Management and Templeton Dragon Fund (TDF) is a ETF from Franklin Templeton Investments (US). Over the past year SPY returned +20.62% while TDF returned +6.31%. Year to date, SPY is up 12.93% versus a loss of 4.56% for TDF.
Over three years, SPY compounded at +22.00% per year against +10.25% for TDF; over five years the annualized figures are +13.33% and -5.95% respectively. Across the full 31-year window we track, SPY has the edge at +8.82% annualized vs +0.29%. Past performance does not guarantee future results.
Risk: Volatility and Drawdowns
TDF has been the more volatile fund, with annualized monthly volatility of 26.9% 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 -75.1% for TDF. 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 0.53. They move independently enough that combining them can meaningfully diversify a portfolio.
Fees and Cost Over Time
SPY charges 0.09% per year while TDF charges 1.33%. On a $10,000 position that is $9 vs $133 annually, a gap of $124 per year that compounds over a long holding period. On income, SPY currently yields 1.01% against 3.61% for TDF.
Holdings Overlap
SPY and TDF share 0 holdings out of 566 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 TDF?
SPY has an expense ratio of 0.09% while TDF charges 1.33%. SPY is the cheaper option. On a $10,000 investment, that is $124 per year of difference.
Which performed better, SPY or TDF?
Over the past year SPY returned +20.62% vs +6.31% for TDF, so SPY leads on 1-year performance. Over the longest common window we track (31 years), SPY annualized +8.82% vs +0.29% for TDF. Past performance does not guarantee future results.
Which is riskier, SPY or TDF?
TDF has been the more volatile fund at 26.9% annualized versus 15.3% for SPY. Worst drawdown: SPY -56.5% vs TDF -75.1%.
Should I hold both SPY and TDF?
SPY and TDF have a monthly-return correlation of 0.53, so combining them can provide real diversification depending on your allocation goals.
What is the holdings overlap between SPY and TDF?
SPY and TDF share 0 common holdings with a 0.0% weight overlap. Combined, they hold 566 unique securities.
Which pays a higher dividend, SPY or TDF?
SPY yields 1.01% while TDF yields 3.61%, so TDF currently pays the higher dividend yield.
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