SPY vs TMFM
State Street SPDR S&P 500 ETF Trust vs Motley Fool Mid Cap Growth ETF
Quick Verdict
SPY has a lower expense ratio. SPY delivered stronger 1-year returns. SPY offers more diversification with 505 holdings.
Side-by-Side Comparison
| Metric | SPY | TMFM | Winner |
|---|---|---|---|
| Expense Ratio | 0.09% | 0.85% | |
| AUM | $789.1B | $113M | |
| Dividend Yield | 1.01% | 0.00% | |
| Holdings | 505 | 34 | |
| YTD Return | +14.47% | +1.01% | |
| 1Y Return | +21.96% | -9.44% | |
| 3Y Return (annualized) | +21.70% | +4.52% | |
| 5Y Return (annualized) | +13.30% | - | |
| Volatility (annualized) | 15.3% | 18.3% | |
| Max Drawdown | -56.5% | -31.8% | |
| Fund Family | State Street Investment Management | Motley Fool Asset Management | |
| Category | Equity | Equity | |
| Inception | Jan 22, 1993 | Jun 17, 2014 |
SPY vs TMFM Performance
State Street SPDR S&P 500 ETF Trust (SPY) is a ETF from State Street Investment Management and Motley Fool Mid Cap Growth ETF (TMFM) is a ETF from Motley Fool Asset Management. Over the past year SPY returned +21.96% while TMFM returned -9.44%. Year to date, SPY is up 14.47% versus a gain of 1.01% for TMFM.
Over three years, SPY compounded at +21.70% per year against +4.52% for TMFM. Across the full 5-year window we track, SPY has the edge at +8.87% annualized vs -0.66%. Past performance does not guarantee future results.
Risk: Volatility and Drawdowns
TMFM has been the more volatile fund, with annualized monthly volatility of 18.3% 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 -31.8% for TMFM. 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 0.80. They usually move together, but the gap leaves some room for diversification.
Fees and Cost Over Time
SPY charges 0.09% per year while TMFM charges 0.85%. On a $10,000 position that is $9 vs $85 annually, a gap of $76 per year that compounds over a long holding period. On income, SPY currently yields 1.01% against 0.00% for TMFM.
Holdings Overlap
SPY and TMFM share 13 holdings out of 523 unique holdings combined, representing a 0.7% weight overlap.
Moderate overlap means holding both could provide meaningful diversification benefits.
Frequently Asked Questions
Which is cheaper, SPY or TMFM?
SPY has an expense ratio of 0.09% while TMFM charges 0.85%. SPY is the cheaper option. On a $10,000 investment, that is $76 per year of difference.
Which performed better, SPY or TMFM?
Over the past year SPY returned +21.96% vs -9.44% for TMFM, so SPY leads on 1-year performance. Over the longest common window we track (5 years), SPY annualized +8.87% vs -0.66% for TMFM. Past performance does not guarantee future results.
Which is riskier, SPY or TMFM?
TMFM has been the more volatile fund at 18.3% annualized versus 15.3% for SPY. Worst drawdown: SPY -56.5% vs TMFM -31.8%.
Should I hold both SPY and TMFM?
SPY and TMFM have a monthly-return correlation of 0.80, so combining them can provide real diversification depending on your allocation goals.
What is the holdings overlap between SPY and TMFM?
SPY and TMFM share 13 common holdings with a 0.7% weight overlap. Combined, they hold 523 unique securities.
Which pays a higher dividend, SPY or TMFM?
SPY yields 1.01% while TMFM yields 0.00%, so SPY currently pays the higher dividend yield.
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