SPY vs TWN
State Street SPDR S&P 500 ETF Trust vs Taiwan Fund Inc.
Quick Verdict
SPY has a lower expense ratio. TWN delivered stronger 1-year returns. SPY offers more diversification with 505 holdings.
Side-by-Side Comparison
| Metric | SPY | TWN | Winner |
|---|---|---|---|
| Expense Ratio | 0.09% | 0.96% | |
| AUM | $821.1B | $311M | |
| Dividend Yield | 1.01% | 6.87% | |
| Holdings | 505 | 28 | |
| YTD Return | +12.68% | +78.96% | |
| 1Y Return | +21.82% | +123.86% | |
| 3Y Return (annualized) | +21.98% | +62.95% | |
| 5Y Return (annualized) | +12.89% | +32.93% | |
| Volatility (annualized) | 15.3% | 36.2% | |
| Max Drawdown | -56.5% | -70.2% | |
| Fund Family | State Street Investment Management | The Taiwan Fund | |
| Category | Equity | Equity | |
| Inception | Jan 22, 1993 | Dec 23, 1986 |
SPY vs TWN Performance
State Street SPDR S&P 500 ETF Trust (SPY) is a ETF from State Street Investment Management and Taiwan Fund Inc. (TWN) is a ETF from The Taiwan Fund. Over the past year SPY returned +21.82% while TWN returned +123.86%. Year to date, SPY is up 12.68% versus a gain of 78.96% for TWN.
Over three years, SPY compounded at +21.98% per year against +62.95% for TWN; over five years the annualized figures are +12.89% and +32.93% respectively. Across the full 31-year window we track, TWN has the edge at +13.22% annualized vs +8.81%. Past performance does not guarantee future results.
Risk: Volatility and Drawdowns
TWN has been the more volatile fund, with annualized monthly volatility of 36.2% 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 -70.2% for TWN. 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 0.50. They move independently enough that combining them can meaningfully diversify a portfolio.
Fees and Cost Over Time
SPY charges 0.09% per year while TWN charges 0.96%. On a $10,000 position that is $9 vs $96 annually, a gap of $87 per year that compounds over a long holding period. On income, SPY currently yields 1.01% against 6.87% for TWN.
Holdings Overlap
SPY and TWN share 0 holdings out of 532 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 TWN?
SPY has an expense ratio of 0.09% while TWN charges 0.96%. SPY is the cheaper option. On a $10,000 investment, that is $87 per year of difference.
Which performed better, SPY or TWN?
Over the past year SPY returned +21.82% vs +123.86% for TWN, so TWN leads on 1-year performance. Over the longest common window we track (31 years), SPY annualized +8.81% vs +13.22% for TWN. Past performance does not guarantee future results.
Which is riskier, SPY or TWN?
TWN has been the more volatile fund at 36.2% annualized versus 15.3% for SPY. Worst drawdown: SPY -56.5% vs TWN -70.2%.
Should I hold both SPY and TWN?
SPY and TWN have a monthly-return correlation of 0.50, so combining them can provide real diversification depending on your allocation goals.
What is the holdings overlap between SPY and TWN?
SPY and TWN share 0 common holdings with a 0.0% weight overlap. Combined, they hold 532 unique securities.
Which pays a higher dividend, SPY or TWN?
SPY yields 1.01% while TWN yields 6.87%, so TWN currently pays the higher dividend yield.
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