SPY vs TOPC
State Street SPDR S&P 500 ETF Trust vs iShares S&P 500 3% Capped ETF
Quick Verdict
TOPC has a lower expense ratio. TOPC delivered stronger 1-year returns. TOPC offers more diversification with 509 holdings.
Side-by-Side Comparison
| Metric | SPY | TOPC | Winner |
|---|---|---|---|
| Expense Ratio | 0.09% | 0.09% | |
| AUM | $821.1B | $32M | |
| Dividend Yield | 1.01% | 1.06% | |
| Holdings | 505 | 509 | |
| YTD Return | +12.71% | +13.43% | |
| 1Y Return | +20.53% | +20.89% | |
| 3Y Return (annualized) | +21.60% | - | |
| 5Y Return (annualized) | +12.79% | - | |
| Volatility (annualized) | 15.3% | 11.1% | |
| Max Drawdown | -56.5% | -8.0% | |
| Fund Family | State Street Investment Management | iShares by BlackRock (US) | |
| Category | Equity | Equity | |
| Inception | Jan 22, 1993 | Apr 15, 2025 |
SPY vs TOPC Performance
State Street SPDR S&P 500 ETF Trust (SPY) is a ETF from State Street Investment Management and iShares S&P 500 3% Capped ETF (TOPC) is a ETF from iShares by BlackRock (US). Over the past year SPY returned +20.53% while TOPC returned +20.89%. Year to date, SPY is up 12.71% versus a gain of 13.43% for TOPC.
Risk: Volatility and Drawdowns
SPY has been the more volatile fund, with annualized monthly volatility of 15.3% compared with 11.1% for TOPC. 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 -8.0% for TOPC. 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 0.98. 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 TOPC charges 0.09%. On a $10,000 position that is $9 vs $9 annually, a gap of $0 per year that compounds over a long holding period. On income, SPY currently yields 1.01% against 1.06% for TOPC.
Holdings Overlap
SPY and TOPC share 484 holdings out of 512 unique holdings combined, representing a 81.8% weight overlap.
High overlap means holding both may not provide much additional diversification.
Frequently Asked Questions
Which is cheaper, SPY or TOPC?
SPY has an expense ratio of 0.09% while TOPC charges 0.09%. TOPC is the cheaper option. On a $10,000 investment, that is $0 per year of difference.
Which performed better, SPY or TOPC?
Over the past year SPY returned +20.53% vs +20.89% for TOPC, so TOPC leads on 1-year performance. Over the longest common window we track (1 years), SPY annualized +8.80% vs +31.44% for TOPC. Past performance does not guarantee future results.
Which is riskier, SPY or TOPC?
SPY has been the more volatile fund at 15.3% annualized versus 11.1% for TOPC. Worst drawdown: SPY -56.5% vs TOPC -8.0%.
Should I hold both SPY and TOPC?
SPY and TOPC have a monthly-return correlation of 0.98, 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 TOPC?
SPY and TOPC share 484 common holdings with a 81.8% weight overlap. Combined, they hold 512 unique securities.
Which pays a higher dividend, SPY or TOPC?
SPY yields 1.01% while TOPC yields 1.06%, so TOPC currently pays the higher dividend yield.
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