SPY vs TEI
State Street SPDR S&P 500 ETF Trust vs Templeton Emerging Markets Income Fund Inc.
Which is better, SPY or TEI?
Large Cap Blend against Emerging Markets Bond.
SPY has a lower expense ratio. SPY led over 5Y and the full window, TEI over 1Y and 3Y.
MarketXLS is not an investment adviser. This comparison is generated automatically from market data and is for information only. A Best mark means the better reading on that one measure, not a recommendation to buy.
Side-by-Side Comparison
| Metric | SPY | TEI |
|---|---|---|
| Expense Ratio | 0.09%Best | 1.14% |
| AUM | $814.4B | $2,711.9 |
| Dividend Yield | 1.01% | 12.56% |
| Holdings | 505 | 151 |
| YTD Return | +13.78%Best | +9.27% |
| 1Y Return | +21.44% | +25.28%Best |
| 3Y Return (annualized) | +21.38% | +24.33%Best |
| 5Y Return (annualized) | +12.80%Best | +8.03% |
| Volatility (annualized) | 15.2%Best | 17.9% |
| Max Drawdown | -56.5%Best | -71.1% |
| $10,000 over 5 years | $18,262Best | $14,714 |
| Fund Family | State Street Investment Management | Franklin Templeton Investments (US) |
| Category | Equity | Fixed Income |
| Style | Large Cap Blend | Emerging Markets Bond |
| Inception | Jan 22, 1993 | Sep 23, 1993 |
Not shown on this pair: Top 10 Weight.
Volatility and max drawdown are measured over the window both funds cover: Jan 2, 1996 to Sep 3, 2026 (30.7 years).
SPY vs TEI growth
Month-end closes. Both lines start at 0% in the first month shown, so the gap between them is the difference in growth across that window. The full view is available from the range buttons; it is not the opening view here because over the whole period one of these two funds moves so much further than the other that its line would sit flat on the axis.
SPY vs TEI Performance
State Street SPDR S&P 500 ETF Trust (SPY) is an ETF from State Street Investment Management and Templeton Emerging Markets Income Fund Inc. (TEI) is an ETF from Franklin Templeton Investments (US). Over the past year SPY returned +21.44% while TEI returned +25.28%. Year to date, SPY is up 13.78% versus a gain of 9.27% for TEI.
Over three years, SPY compounded at +21.38% per year against +24.33% for TEI; over five years the annualized figures are +12.80% and +8.03% respectively. Across the full 31-year window we track, SPY has the edge at +8.83% annualized vs +0.36%.
Past performance does not guarantee future results.
Risk: Volatility and Drawdowns
TEI has been the more volatile fund, with annualized monthly volatility of 17.9% compared with 15.2% 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 -71.1% for TEI. Drawdown depth is what each fund did in the worst stretch of the window measured above.
The two funds' monthly returns correlate at 0.55. They move together some of the time, and apart the rest.
Fees and Cost Over Time
SPY charges 0.09% per year while TEI charges 1.14%. On a $10,000 position that is $9 vs $114 annually, a gap of $105 per year that compounds over a long holding period. On income, SPY currently yields 1.01% against 12.56% for TEI.
Holdings Overlap
We hold position weights for 504 holdings in SPY and 18 in TEI, totalling 100.0% and 29.8% of the two funds. The two books name no position in common, so there is no overlap percentage to show.
The two holdings books were reported 126 days apart, SPY as of Aug 4, 2026 and TEI as of Mar 31, 2026, so some of the difference between them is the time between the two reports rather than the funds.
0 positions in common, counted across the 504 positions we hold weights for in SPY and 18 in TEI, against full books of 505 and 151.
You are not choosing between two funds in isolation.
Whichever of SPY and TEI you pick has to sit alongside everything else you own. Add the rest and see what the combination actually holds.
Free for up to 10 holdings. No account needed.
Frequently Asked Questions
Which is cheaper, SPY or TEI?
SPY has an expense ratio of 0.09% while TEI charges 1.14%. SPY is the cheaper option, by $105 a year on a $10,000 investment.
Which performed better, SPY or TEI?
Over the past year SPY returned +21.44% vs +25.28% for TEI, so TEI leads on 1-year performance. Over the longest common window we track (31 years), SPY annualized +8.83% vs +0.36% for TEI. Past performance does not guarantee future results. This is information, not a recommendation.
Which is riskier, SPY or TEI?
TEI has been the more volatile fund at 17.9% annualized versus 15.2% for SPY. Worst drawdown: SPY -56.5% vs TEI -71.1%.
Should I hold both SPY and TEI?
SPY and TEI have a monthly-return correlation of 0.55, so their returns are far enough apart for the mix to behave differently from either one alone. This is information, not a recommendation.
Which pays a higher dividend, SPY or TEI?
SPY yields 1.01% while TEI yields 12.56%, so TEI currently pays the higher dividend yield.
Is TEI better than SPY?
SPY has a lower expense ratio. SPY led over 5Y and the full window, TEI over 1Y and 3Y. Which one suits a particular account depends on what it is for. This is information, not a recommendation.