SPY vs UCON
SPY vs UCON
State Street SPDR S&P 500 ETF Trust vs First Trust Smith Unconstrained Bond 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 | UCON | Winner |
|---|---|---|---|
| Expense Ratio | 0.09% | 0.86% | |
| AUM | $789.1B | $3.3B | |
| Dividend Yield | 1.01% | 5.11% | |
| Holdings | 505 | 456 | |
| YTD Return | +13.79% | +0.68% | |
| 1Y Return | +23.66% | +3.71% | |
| 3Y Return (annualized) | +21.40% | +5.44% | |
| 5Y Return (annualized) | +13.37% | +2.75% | |
| Volatility (annualized) | 15.3% | 4.5% | |
| Max Drawdown | -56.5% | -15.3% | |
| Fund Family | State Street Investment Management | First Trust Portfolios (US) | |
| Category | Equity | Fixed Income | |
| Inception | Jan 22, 1993 | Jun 4, 2018 |
SPY vs UCON Performance
State Street SPDR S&P 500 ETF Trust (SPY) is a ETF from State Street Investment Management and First Trust Smith Unconstrained Bond ETF (UCON) is a ETF from First Trust Portfolios (US). Over the past year SPY returned +23.66% while UCON returned +3.71%. Year to date, SPY is up 13.79% versus a gain of 0.68% for UCON.
Over three years, SPY compounded at +21.40% per year against +5.44% for UCON; over five years the annualized figures are +13.37% and +2.75% respectively. Across the full 8-year window we track, SPY has the edge at +8.85% annualized vs +2.56%. Past performance does not guarantee future results.
Risk: Volatility and Drawdowns
SPY has been the more volatile fund, with annualized monthly volatility of 15.3% compared with 4.5% for UCON. 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 -15.3% for UCON. 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 0.67. They move independently enough that combining them can meaningfully diversify a portfolio.
Fees and Cost Over Time
SPY charges 0.09% per year while UCON charges 0.86%. On a $10,000 position that is $9 vs $86 annually, a gap of $77 per year that compounds over a long holding period. On income, SPY currently yields 1.01% against 5.11% for UCON.
Holdings Overlap
SPY and UCON share 1 holdings out of 822 unique holdings combined, representing a 0.1% weight overlap.
Moderate overlap means holding both could provide meaningful diversification benefits.
Top Shared Holdings
| Stock | Weight in SPY | Weight in UCON | Difference |
|---|---|---|---|
| C | 0.38% | 0.15% | 0.23% |
Frequently Asked Questions
Which is cheaper, SPY or UCON?
SPY has an expense ratio of 0.09% while UCON charges 0.86%. SPY is the cheaper option. On a $10,000 investment, that is $77 per year of difference.
Which performed better, SPY or UCON?
Over the past year SPY returned +23.66% vs +3.71% for UCON, so SPY leads on 1-year performance. Over the longest common window we track (8 years), SPY annualized +8.85% vs +2.56% for UCON. Past performance does not guarantee future results.
Which is riskier, SPY or UCON?
SPY has been the more volatile fund at 15.3% annualized versus 4.5% for UCON. Worst drawdown: SPY -56.5% vs UCON -15.3%.
Should I hold both SPY and UCON?
SPY and UCON have a monthly-return correlation of 0.67, so combining them can provide real diversification depending on your allocation goals.
What is the holdings overlap between SPY and UCON?
SPY and UCON share 1 common holdings with a 0.1% weight overlap. Combined, they hold 822 unique securities.
Which pays a higher dividend, SPY or UCON?
SPY yields 1.01% while UCON yields 5.11%, so UCON currently pays the higher dividend yield.
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