SPY vs TSEP
State Street SPDR S&P 500 ETF Trust vs FT Vest Emerging Market Buffer ETF - September
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 | TSEP | Winner |
|---|---|---|---|
| Expense Ratio | 0.09% | 0.95% | |
| AUM | $821.1B | $16M | |
| Dividend Yield | 1.01% | 0.00% | |
| Holdings | 505 | 5 | |
| YTD Return | +12.22% | +10.30% | |
| 1Y Return | +20.83% | +18.32% | |
| 3Y Return (annualized) | +21.70% | - | |
| 5Y Return (annualized) | +12.98% | - | |
| Volatility (annualized) | 15.3% | 7.9% | |
| Max Drawdown | -56.5% | -9.8% | |
| Fund Family | State Street Investment Management | First Trust Portfolios (US) | |
| Category | Equity | Alternative | |
| Inception | Jan 22, 1993 | Sep 20, 2024 |
SPY vs TSEP Performance
State Street SPDR S&P 500 ETF Trust (SPY) is a ETF from State Street Investment Management and FT Vest Emerging Market Buffer ETF - September (TSEP) is a ETF from First Trust Portfolios (US). Over the past year SPY returned +20.83% while TSEP returned +18.32%. Year to date, SPY is up 12.22% versus a gain of 10.30% for TSEP.
Risk: Volatility and Drawdowns
SPY has been the more volatile fund, with annualized monthly volatility of 15.3% compared with 7.9% for TSEP. 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 -9.8% for TSEP. 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 0.63. They move independently enough that combining them can meaningfully diversify a portfolio.
Fees and Cost Over Time
SPY charges 0.09% per year while TSEP charges 0.95%. On a $10,000 position that is $9 vs $95 annually, a gap of $86 per year that compounds over a long holding period. On income, SPY currently yields 1.01% against 0.00% for TSEP.
Holdings Overlap
SPY and TSEP share 0 holdings out of 505 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 TSEP?
SPY has an expense ratio of 0.09% while TSEP charges 0.95%. SPY is the cheaper option. On a $10,000 investment, that is $86 per year of difference.
Which performed better, SPY or TSEP?
Over the past year SPY returned +20.83% vs +18.32% for TSEP, so SPY leads on 1-year performance. Over the longest common window we track (2 years), SPY annualized +8.79% vs +16.08% for TSEP. Past performance does not guarantee future results.
Which is riskier, SPY or TSEP?
SPY has been the more volatile fund at 15.3% annualized versus 7.9% for TSEP. Worst drawdown: SPY -56.5% vs TSEP -9.8%.
Should I hold both SPY and TSEP?
SPY and TSEP have a monthly-return correlation of 0.63, so combining them can provide real diversification depending on your allocation goals.
What is the holdings overlap between SPY and TSEP?
SPY and TSEP share 0 common holdings with a 0.0% weight overlap. Combined, they hold 505 unique securities.
Which pays a higher dividend, SPY or TSEP?
SPY yields 1.01% while TSEP yields 0.00%, so SPY currently pays the higher dividend yield.
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