SPY vs THRO
State Street SPDR S&P 500 ETF Trust vs iShares US Thematic Rotation Active 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 | THRO | Winner |
|---|---|---|---|
| Expense Ratio | 0.09% | 0.57% | |
| AUM | $789.1B | $6.4B | |
| Dividend Yield | 1.01% | 0.25% | |
| Holdings | 505 | 245 | |
| YTD Return | +13.39% | +14.02% | |
| 1Y Return | +22.52% | +21.28% | |
| 3Y Return (annualized) | +21.36% | +22.70% | |
| 5Y Return (annualized) | +13.19% | - | |
| Volatility (annualized) | 15.3% | 17.8% | |
| Max Drawdown | -56.5% | -26.5% | |
| Fund Family | State Street Investment Management | BlackRock, Inc. (US) | |
| Category | Equity | Equity | |
| Inception | Jan 22, 1993 | Dec 14, 2021 |
SPY vs THRO Performance
State Street SPDR S&P 500 ETF Trust (SPY) is a ETF from State Street Investment Management and iShares US Thematic Rotation Active ETF (THRO) is a ETF from BlackRock, Inc. (US). Over the past year SPY returned +22.52% while THRO returned +21.28%. Year to date, SPY is up 13.39% versus a gain of 14.02% for THRO.
Over three years, SPY compounded at +21.36% per year against +22.70% for THRO. Across the full 5-year window we track, THRO has the edge at +13.63% annualized vs +8.84%. Past performance does not guarantee future results.
Risk: Volatility and Drawdowns
THRO has been the more volatile fund, with annualized monthly volatility of 17.8% 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 -26.5% for THRO. 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 0.98. 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 THRO charges 0.57%. On a $10,000 position that is $9 vs $57 annually, a gap of $48 per year that compounds over a long holding period. On income, SPY currently yields 1.01% against 0.25% for THRO.
Holdings Overlap
SPY and THRO share 164 holdings out of 580 unique holdings combined, representing a 60.2% weight overlap.
High overlap means holding both may not provide much additional diversification.
Frequently Asked Questions
Which is cheaper, SPY or THRO?
SPY has an expense ratio of 0.09% while THRO charges 0.57%. SPY is the cheaper option. On a $10,000 investment, that is $48 per year of difference.
Which performed better, SPY or THRO?
Over the past year SPY returned +22.52% vs +21.28% for THRO, so SPY leads on 1-year performance. Over the longest common window we track (5 years), SPY annualized +8.84% vs +13.63% for THRO. Past performance does not guarantee future results.
Which is riskier, SPY or THRO?
THRO has been the more volatile fund at 17.8% annualized versus 15.3% for SPY. Worst drawdown: SPY -56.5% vs THRO -26.5%.
Should I hold both SPY and THRO?
SPY and THRO have a monthly-return correlation of 0.98, 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 THRO?
SPY and THRO share 164 common holdings with a 60.2% weight overlap. Combined, they hold 580 unique securities.
Which pays a higher dividend, SPY or THRO?
SPY yields 1.01% while THRO yields 0.25%, so SPY currently pays the higher dividend yield.
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