SPY vs TSME
State Street SPDR S&P 500 ETF Trust vs Thrivent Small-Mid Cap Equity ETF
Quick Verdict
SPY has a lower expense ratio. TSME delivered stronger 1-year returns. SPY offers more diversification with 503 holdings.
Side-by-Side Comparison
| Metric | SPY | TSME | Winner |
|---|---|---|---|
| Expense Ratio | 0.09% | 0.65% | |
| AUM | $789.1B | $966M | |
| Dividend Yield | 1.01% | 0.14% | |
| Holdings | 505 | 67 | |
| YTD Return | +13.68% | +19.96% | |
| 1Y Return | +21.53% | +23.87% | |
| 3Y Return (annualized) | +21.44% | +20.15% | |
| 5Y Return (annualized) | +13.18% | - | |
| Volatility (annualized) | 15.3% | 21.5% | |
| Max Drawdown | -56.5% | -26.6% | |
| Fund Family | State Street Investment Management | Thrivent Funds | |
| Category | Equity | Equity | |
| Inception | Jan 22, 1993 | Oct 5, 2022 |
SPY vs TSME Performance
State Street SPDR S&P 500 ETF Trust (SPY) is a ETF from State Street Investment Management and Thrivent Small-Mid Cap Equity ETF (TSME) is a ETF from Thrivent Funds. Over the past year SPY returned +21.53% while TSME returned +23.87%. Year to date, SPY is up 13.68% versus a gain of 19.96% for TSME.
Over three years, SPY compounded at +21.44% per year against +20.15% for TSME. Across the full 4-year window we track, TSME has the edge at +19.64% annualized vs +8.85%. Past performance does not guarantee future results.
Risk: Volatility and Drawdowns
TSME has been the more volatile fund, with annualized monthly volatility of 21.5% 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 -26.6% for TSME. 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 0.78. They usually move together, but the gap leaves some room for diversification.
Fees and Cost Over Time
SPY charges 0.09% per year while TSME charges 0.65%. On a $10,000 position that is $9 vs $65 annually, a gap of $56 per year that compounds over a long holding period. On income, SPY currently yields 1.01% against 0.14% for TSME.
Holdings Overlap
SPY and TSME share 10 holdings out of 559 unique holdings combined, representing a 0.8% weight overlap.
Moderate overlap means holding both could provide meaningful diversification benefits.
Frequently Asked Questions
Which is cheaper, SPY or TSME?
SPY has an expense ratio of 0.09% while TSME charges 0.65%. SPY is the cheaper option. On a $10,000 investment, that is $56 per year of difference.
Which performed better, SPY or TSME?
Over the past year SPY returned +21.53% vs +23.87% for TSME, so TSME leads on 1-year performance. Over the longest common window we track (4 years), SPY annualized +8.85% vs +19.64% for TSME. Past performance does not guarantee future results.
Which is riskier, SPY or TSME?
TSME has been the more volatile fund at 21.5% annualized versus 15.3% for SPY. Worst drawdown: SPY -56.5% vs TSME -26.6%.
Should I hold both SPY and TSME?
SPY and TSME have a monthly-return correlation of 0.78, so combining them can provide real diversification depending on your allocation goals.
What is the holdings overlap between SPY and TSME?
SPY and TSME share 10 common holdings with a 0.8% weight overlap. Combined, they hold 559 unique securities.
Which pays a higher dividend, SPY or TSME?
SPY yields 1.01% while TSME yields 0.14%, so SPY currently pays the higher dividend yield.
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