SPY vs TMFC

Quick Verdict

SPY has a lower expense ratio. SPY delivered stronger 1-year returns. SPY offers more diversification with 503 holdings.

Lower Fees: SPYHigher Returns: SPYMore Diversified: SPY

Side-by-Side Comparison

MetricSPYTMFCWinner
Expense Ratio0.09%0.50%
AUM$789.1B$2.0B
Dividend Yield1.01%0.11%
Holdings505103
YTD Return+13.75%+12.31%
1Y Return+22.91%+20.28%
3Y Return (annualized)+21.67%+26.03%
5Y Return (annualized)+13.32%+14.70%
Volatility (annualized)15.3%18.8%
Max Drawdown-56.5%-33.1%
Fund FamilyState Street Investment ManagementMotley Fool Asset Management
CategoryEquityEquity
InceptionJan 22, 1993Jan 29, 2018

SPY vs TMFC Performance

State Street SPDR S&P 500 ETF Trust (SPY) is a ETF from State Street Investment Management and Motley Fool 100 Index ETF (TMFC) is a ETF from Motley Fool Asset Management. Over the past year SPY returned +22.91% while TMFC returned +20.28%. Year to date, SPY is up 13.75% versus a gain of 12.31% for TMFC.

Over three years, SPY compounded at +21.67% per year against +26.03% for TMFC; over five years the annualized figures are +13.32% and +14.70% respectively. Across the full 9-year window we track, TMFC has the edge at +18.18% annualized vs +8.85%. Past performance does not guarantee future results.

Risk: Volatility and Drawdowns

TMFC has been the more volatile fund, with annualized monthly volatility of 18.8% 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 -33.1% for TMFC. 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 0.94. 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 TMFC charges 0.50%. On a $10,000 position that is $9 vs $50 annually, a gap of $41 per year that compounds over a long holding period. On income, SPY currently yields 1.01% against 0.11% for TMFC.

Holdings Overlap

29.9%overlap

SPY and TMFC share 42 holdings out of 562 unique holdings combined, representing a 29.9% weight overlap.

Moderate overlap means holding both could provide meaningful diversification benefits.

Top Shared Holdings

StockWeight in SPYWeight in TMFCDifference
NVDA7.31%5.62%1.69%
AAPL7.09%5.18%1.91%
AMZN3.69%5.72%2.03%
GOOGProProPro
AVGOProProPro
METAProProPro
LLYProProPro
VProProPro
MAProProPro
LRCXProProPro
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Frequently Asked Questions

Which is cheaper, SPY or TMFC?

SPY has an expense ratio of 0.09% while TMFC charges 0.50%. SPY is the cheaper option. On a $10,000 investment, that is $41 per year of difference.

Which performed better, SPY or TMFC?

Over the past year SPY returned +22.91% vs +20.28% for TMFC, so SPY leads on 1-year performance. Over the longest common window we track (9 years), SPY annualized +8.85% vs +18.18% for TMFC. Past performance does not guarantee future results.

Which is riskier, SPY or TMFC?

TMFC has been the more volatile fund at 18.8% annualized versus 15.3% for SPY. Worst drawdown: SPY -56.5% vs TMFC -33.1%.

Should I hold both SPY and TMFC?

SPY and TMFC have a monthly-return correlation of 0.94, 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 TMFC?

SPY and TMFC share 42 common holdings with a 29.9% weight overlap. Combined, they hold 562 unique securities.

Which pays a higher dividend, SPY or TMFC?

SPY yields 1.01% while TMFC yields 0.11%, so SPY currently pays the higher dividend yield.

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