SPY vs TMFX
State Street SPDR S&P 500 ETF Trust vs Motley Fool Next Index ETF
Quick Verdict
SPY has a lower expense ratio. SPY delivered stronger 1-year returns. SPY offers more diversification with 503 holdings.
Side-by-Side Comparison
| Metric | SPY | TMFX | Winner |
|---|---|---|---|
| Expense Ratio | 0.09% | 0.50% | |
| AUM | $789.1B | $33M | |
| Dividend Yield | 1.01% | 0.05% | |
| Holdings | 505 | 191 | |
| YTD Return | +13.39% | +11.70% | |
| 1Y Return | +22.52% | +18.65% | |
| 3Y Return (annualized) | +21.36% | +15.54% | |
| 5Y Return (annualized) | +13.19% | - | |
| Volatility (annualized) | 15.3% | 20.3% | |
| Max Drawdown | -56.5% | -34.3% | |
| Fund Family | State Street Investment Management | Motley Fool Asset Management | |
| Category | Equity | Equity | |
| Inception | Jan 22, 1993 | Dec 30, 2021 |
SPY vs TMFX Performance
State Street SPDR S&P 500 ETF Trust (SPY) is a ETF from State Street Investment Management and Motley Fool Next Index ETF (TMFX) is a ETF from Motley Fool Asset Management. Over the past year SPY returned +22.52% while TMFX returned +18.65%. Year to date, SPY is up 13.39% versus a gain of 11.70% for TMFX.
Over three years, SPY compounded at +21.36% per year against +15.54% for TMFX. Across the full 5-year window we track, SPY has the edge at +8.84% annualized vs +4.45%. Past performance does not guarantee future results.
Risk: Volatility and Drawdowns
TMFX has been the more volatile fund, with annualized monthly volatility of 20.3% 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 -34.3% for TMFX. 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 0.89. They usually move together, but the gap leaves some room for diversification.
Fees and Cost Over Time
SPY charges 0.09% per year while TMFX 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 0.05% for TMFX.
Holdings Overlap
SPY and TMFX share 34 holdings out of 659 unique holdings combined, representing a 1.0% weight overlap.
Moderate overlap means holding both could provide meaningful diversification benefits.
Frequently Asked Questions
Which is cheaper, SPY or TMFX?
SPY has an expense ratio of 0.09% while TMFX 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 TMFX?
Over the past year SPY returned +22.52% vs +18.65% for TMFX, so SPY leads on 1-year performance. Over the longest common window we track (5 years), SPY annualized +8.84% vs +4.45% for TMFX. Past performance does not guarantee future results.
Which is riskier, SPY or TMFX?
TMFX has been the more volatile fund at 20.3% annualized versus 15.3% for SPY. Worst drawdown: SPY -56.5% vs TMFX -34.3%.
Should I hold both SPY and TMFX?
SPY and TMFX have a monthly-return correlation of 0.89, so combining them can provide real diversification depending on your allocation goals.
What is the holdings overlap between SPY and TMFX?
SPY and TMFX share 34 common holdings with a 1.0% weight overlap. Combined, they hold 659 unique securities.
Which pays a higher dividend, SPY or TMFX?
SPY yields 1.01% while TMFX yields 0.05%, so SPY currently pays the higher dividend yield.
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