SPY vs TMED
State Street SPDR S&P 500 ETF Trust vs T. Rowe Price Health Care ETF
Quick Verdict
SPY has a lower expense ratio. TMED delivered stronger 1-year returns. SPY offers more diversification with 505 holdings.
Side-by-Side Comparison
| Metric | SPY | TMED | Winner |
|---|---|---|---|
| Expense Ratio | 0.09% | 0.44% | |
| AUM | $821.1B | $30M | |
| Dividend Yield | 1.01% | 0.48% | |
| Holdings | 505 | 347 | |
| YTD Return | +12.68% | +22.32% | |
| 1Y Return | +21.82% | +45.18% | |
| 3Y Return (annualized) | +21.98% | - | |
| 5Y Return (annualized) | +12.89% | - | |
| Volatility (annualized) | 15.3% | 14.9% | |
| Max Drawdown | -56.5% | -11.1% | |
| Fund Family | State Street Investment Management | T.Rowe Price | |
| Category | Equity | Equity | |
| Inception | Jan 22, 1993 | Jun 11, 2025 |
SPY vs TMED Performance
State Street SPDR S&P 500 ETF Trust (SPY) is a ETF from State Street Investment Management and T. Rowe Price Health Care ETF (TMED) is a ETF from T.Rowe Price. Over the past year SPY returned +21.82% while TMED returned +45.18%. Year to date, SPY is up 12.68% versus a gain of 22.32% for TMED.
Risk: Volatility and Drawdowns
SPY has been the more volatile fund, with annualized monthly volatility of 15.3% compared with 14.9% for TMED. 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 -11.1% for TMED. 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 0.37. They move independently enough that combining them can meaningfully diversify a portfolio.
Fees and Cost Over Time
SPY charges 0.09% per year while TMED charges 0.44%. On a $10,000 position that is $9 vs $44 annually, a gap of $35 per year that compounds over a long holding period. On income, SPY currently yields 1.01% against 0.48% for TMED.
Holdings Overlap
SPY and TMED share 0 holdings out of 666 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 TMED?
SPY has an expense ratio of 0.09% while TMED charges 0.44%. SPY is the cheaper option. On a $10,000 investment, that is $35 per year of difference.
Which performed better, SPY or TMED?
Over the past year SPY returned +21.82% vs +45.18% for TMED, so TMED leads on 1-year performance. Over the longest common window we track (1 years), SPY annualized +8.81% vs +36.82% for TMED. Past performance does not guarantee future results.
Which is riskier, SPY or TMED?
SPY has been the more volatile fund at 15.3% annualized versus 14.9% for TMED. Worst drawdown: SPY -56.5% vs TMED -11.1%.
Should I hold both SPY and TMED?
SPY and TMED have a monthly-return correlation of 0.37, so combining them can provide real diversification depending on your allocation goals.
What is the holdings overlap between SPY and TMED?
SPY and TMED share 0 common holdings with a 0.0% weight overlap. Combined, they hold 666 unique securities.
Which pays a higher dividend, SPY or TMED?
SPY yields 1.01% while TMED yields 0.48%, so SPY currently pays the higher dividend yield.
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