SPY vs TILT
State Street SPDR S&P 500 ETF Trust vs FlexShares Morningstar US Market Factor Tilt Index Fund
Quick Verdict
SPY has a lower expense ratio. TILT delivered stronger 1-year returns. TILT offers more diversification with 1,940 holdings.
Side-by-Side Comparison
| Metric | SPY | TILT | Winner |
|---|---|---|---|
| Expense Ratio | 0.09% | 0.25% | |
| AUM | $821.1B | $2.3B | |
| Dividend Yield | 1.01% | 1.07% | |
| Holdings | 505 | 1,940 | |
| YTD Return | +12.68% | +13.74% | |
| 1Y Return | +21.82% | +23.26% | |
| 3Y Return (annualized) | +21.98% | +20.63% | |
| 5Y Return (annualized) | +12.89% | +11.65% | |
| Volatility (annualized) | 15.3% | 15.6% | |
| Max Drawdown | -56.5% | -38.5% | |
| Fund Family | State Street Investment Management | Flexshares Trust | |
| Category | Equity | Equity | |
| Inception | Jan 22, 1993 | Sep 16, 2011 |
SPY vs TILT Performance
State Street SPDR S&P 500 ETF Trust (SPY) is a ETF from State Street Investment Management and FlexShares Morningstar US Market Factor Tilt Index Fund (TILT) is a ETF from Flexshares Trust. Over the past year SPY returned +21.82% while TILT returned +23.26%. Year to date, SPY is up 12.68% versus a gain of 13.74% for TILT.
Over three years, SPY compounded at +21.98% per year against +20.63% for TILT; over five years the annualized figures are +12.89% and +11.65% respectively. Across the full 15-year window we track, TILT has the edge at +14.55% annualized vs +8.81%. Past performance does not guarantee future results.
Risk: Volatility and Drawdowns
TILT has been the more volatile fund, with annualized monthly volatility of 15.6% 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 -38.5% for TILT. 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 0.97. 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 TILT charges 0.25%. On a $10,000 position that is $9 vs $25 annually, a gap of $16 per year that compounds over a long holding period. On income, SPY currently yields 1.01% against 1.07% for TILT.
Holdings Overlap
SPY and TILT share 497 holdings out of 1914 unique holdings combined, representing a 70.9% weight overlap.
High overlap means holding both may not provide much additional diversification.
Frequently Asked Questions
Which is cheaper, SPY or TILT?
SPY has an expense ratio of 0.09% while TILT charges 0.25%. SPY is the cheaper option. On a $10,000 investment, that is $16 per year of difference.
Which performed better, SPY or TILT?
Over the past year SPY returned +21.82% vs +23.26% for TILT, so TILT leads on 1-year performance. Over the longest common window we track (15 years), SPY annualized +8.81% vs +14.55% for TILT. Past performance does not guarantee future results.
Which is riskier, SPY or TILT?
TILT has been the more volatile fund at 15.6% annualized versus 15.3% for SPY. Worst drawdown: SPY -56.5% vs TILT -38.5%.
Should I hold both SPY and TILT?
SPY and TILT have a monthly-return correlation of 0.97, 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 TILT?
SPY and TILT share 497 common holdings with a 70.9% weight overlap. Combined, they hold 1914 unique securities.
Which pays a higher dividend, SPY or TILT?
SPY yields 1.01% while TILT yields 1.07%, so TILT currently pays the higher dividend yield.
Popular ETF Comparisons
Get Full ETF Analytics
Access complete holdings data, overlap analysis, screener tools, and more with FundXLS.