SPY vs TLTD

Quick Verdict

SPY has a lower expense ratio. TLTD delivered stronger 1-year returns. TLTD offers more diversification with 2317 holdings.

Lower Fees: SPYHigher Returns: TLTDMore Diversified: TLTD

Side-by-Side Comparison

MetricSPYTLTDWinner
Expense Ratio0.09%0.39%
AUM$789.1B$661M
Dividend Yield1.01%3.41%
Holdings5052,387
YTD Return+14.47%+13.64%
1Y Return+21.96%+25.04%
3Y Return (annualized)+21.70%+21.38%
5Y Return (annualized)+13.30%+10.81%
Volatility (annualized)15.3%15.1%
Max Drawdown-56.5%-44.6%
Fund FamilyState Street Investment ManagementFlexshares Trust
CategoryEquityEquity
InceptionJan 22, 1993Sep 25, 2012

SPY vs TLTD Performance

State Street SPDR S&P 500 ETF Trust (SPY) is a ETF from State Street Investment Management and FlexShares Morningstar Developed Markets ex-US Factor Tilt Index Fund (TLTD) is a ETF from Flexshares Trust. Over the past year SPY returned +21.96% while TLTD returned +25.04%. Year to date, SPY is up 14.47% versus a gain of 13.64% for TLTD.

Over three years, SPY compounded at +21.70% per year against +21.38% for TLTD; over five years the annualized figures are +13.30% and +10.81% respectively. Across the full 14-year window we track, SPY has the edge at +8.87% annualized vs +7.00%. Past performance does not guarantee future results.

Risk: Volatility and Drawdowns

SPY has been the more volatile fund, with annualized monthly volatility of 15.3% compared with 15.1% for TLTD. 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 -44.6% for TLTD. 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 0.81. They usually move together, but the gap leaves some room for diversification.

Fees and Cost Over Time

SPY charges 0.09% per year while TLTD charges 0.39%. On a $10,000 position that is $9 vs $39 annually, a gap of $30 per year that compounds over a long holding period. On income, SPY currently yields 1.01% against 3.41% for TLTD.

Holdings Overlap

0.1%overlap

SPY and TLTD share 2 holdings out of 2818 unique holdings combined, representing a 0.1% weight overlap.

Moderate overlap means holding both could provide meaningful diversification benefits.

Top Shared Holdings

StockWeight in SPYWeight in TLTDDifference
ROP0.06%0.54%0.48%
BG0.02%0.04%0.02%

Frequently Asked Questions

Which is cheaper, SPY or TLTD?

SPY has an expense ratio of 0.09% while TLTD charges 0.39%. SPY is the cheaper option. On a $10,000 investment, that is $30 per year of difference.

Which performed better, SPY or TLTD?

Over the past year SPY returned +21.96% vs +25.04% for TLTD, so TLTD leads on 1-year performance. Over the longest common window we track (14 years), SPY annualized +8.87% vs +7.00% for TLTD. Past performance does not guarantee future results.

Which is riskier, SPY or TLTD?

SPY has been the more volatile fund at 15.3% annualized versus 15.1% for TLTD. Worst drawdown: SPY -56.5% vs TLTD -44.6%.

Should I hold both SPY and TLTD?

SPY and TLTD have a monthly-return correlation of 0.81, so combining them can provide real diversification depending on your allocation goals.

What is the holdings overlap between SPY and TLTD?

SPY and TLTD share 2 common holdings with a 0.1% weight overlap. Combined, they hold 2818 unique securities.

Which pays a higher dividend, SPY or TLTD?

SPY yields 1.01% while TLTD yields 3.41%, so TLTD currently pays the higher dividend yield.

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