SPY vs USMC
State Street SPDR S&P 500 ETF Trust vs Principal U.S. Mega-Cap 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 | USMC | Winner |
|---|---|---|---|
| Expense Ratio | 0.09% | 0.12% | |
| AUM | $789.1B | $3.6B | |
| Dividend Yield | 1.01% | 0.75% | |
| Holdings | 505 | 28 | |
| YTD Return | +13.75% | +12.79% | |
| 1Y Return | +22.91% | +20.54% | |
| 3Y Return (annualized) | +21.67% | +21.52% | |
| 5Y Return (annualized) | +13.32% | +14.58% | |
| Volatility (annualized) | 15.3% | 15.5% | |
| Max Drawdown | -56.5% | -30.0% | |
| Fund Family | State Street Investment Management | Principal Funds | |
| Category | Equity | Equity | |
| Inception | Jan 22, 1993 | Oct 11, 2017 |
SPY vs USMC Performance
State Street SPDR S&P 500 ETF Trust (SPY) is a ETF from State Street Investment Management and Principal U.S. Mega-Cap ETF (USMC) is a ETF from Principal Funds. Over the past year SPY returned +22.91% while USMC returned +20.54%. Year to date, SPY is up 13.75% versus a gain of 12.79% for USMC.
Over three years, SPY compounded at +21.67% per year against +21.52% for USMC; over five years the annualized figures are +13.32% and +14.58% respectively. Across the full 9-year window we track, USMC has the edge at +14.46% annualized vs +8.85%. Past performance does not guarantee future results.
Risk: Volatility and Drawdowns
USMC has been the more volatile fund, with annualized monthly volatility of 15.5% 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 -30.0% for USMC. 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 0.97. 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 USMC charges 0.12%. On a $10,000 position that is $9 vs $12 annually, a gap of $3 per year that compounds over a long holding period. On income, SPY currently yields 1.01% against 0.75% for USMC.
Holdings Overlap
SPY and USMC share 26 holdings out of 504 unique holdings combined, representing a 47.6% weight overlap.
Moderate overlap means holding both could provide meaningful diversification benefits.
Frequently Asked Questions
Which is cheaper, SPY or USMC?
SPY has an expense ratio of 0.09% while USMC charges 0.12%. SPY is the cheaper option. On a $10,000 investment, that is $3 per year of difference.
Which performed better, SPY or USMC?
Over the past year SPY returned +22.91% vs +20.54% for USMC, so SPY leads on 1-year performance. Over the longest common window we track (9 years), SPY annualized +8.85% vs +14.46% for USMC. Past performance does not guarantee future results.
Which is riskier, SPY or USMC?
USMC has been the more volatile fund at 15.5% annualized versus 15.3% for SPY. Worst drawdown: SPY -56.5% vs USMC -30.0%.
Should I hold both SPY and USMC?
SPY and USMC have a monthly-return correlation of 0.97, 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 USMC?
SPY and USMC share 26 common holdings with a 47.6% weight overlap. Combined, they hold 504 unique securities.
Which pays a higher dividend, SPY or USMC?
SPY yields 1.01% while USMC yields 0.75%, so SPY currently pays the higher dividend yield.
Popular ETF Comparisons
Get Full ETF Analytics
Access complete holdings data, overlap analysis, screener tools, and more with FundXLS.