SPY vs USMC
State Street SPDR S&P 500 ETF Trust vs Principal U.S. Mega-Cap ETF
Which is better, SPY or USMC?
Nearly the same fund. SPY costs less.
SPY has a lower expense ratio. SPY led over 1Y and 3Y, USMC over 5Y and the full window. The two have moved almost in lockstep, correlation 0.97. SPY is less concentrated, with 37.8% of the fund in its ten largest positions against 55.4%.
MarketXLS is not an investment adviser. This comparison is generated automatically from market data and is for information only. A Best mark means the better reading on that one measure, not a recommendation to buy.
Side-by-Side Comparison
| Metric | SPY | USMC |
|---|---|---|
| Expense Ratio | 0.09%Best | 0.12% |
| AUM | $804.7B | $5.1B |
| Dividend Yield | 0.98% | 0.74% |
| Holdings | 505 | 29 |
| YTD Return | +13.81% | +14.32%Best |
| 1Y Return | +16.94%Best | +13.75% |
| 3Y Return (annualized) | +22.84%Best | +22.69% |
| 5Y Return (annualized) | +13.50% | +15.04%Best |
| Volatility (annualized) | 16.2% | 15.4%Best |
| Max Drawdown | -34.1% | -30.0%Best |
| $10,000 over 5 years | $18,836 | $20,149Best |
| Top 10 Weight | 37.8%Best | 55.4% |
| Fund Family | State Street Investment Management | Principal Funds |
| Category | Equity | Equity |
| Style | Large Cap Blend | Large Cap Blend |
| Inception | Jan 22, 1993 | Oct 11, 2017 |
Volatility and max drawdown are measured over the window both funds cover: Oct 12, 2017 to Sep 22, 2026 (8.9 years).
SPY vs USMC growth
Month-end closes. Both lines start at 0% in the first month shown, so the gap between them is the difference in growth across that window. The full view covers the 8.9 years both funds cover.
SPY vs USMC Performance
State Street SPDR S&P 500 ETF Trust (SPY) is an ETF from State Street Investment Management and Principal U.S. Mega-Cap ETF (USMC) is an ETF from Principal Funds. Over the past year SPY returned +16.94% while USMC returned +13.75%. Year to date, SPY is up 13.81% versus a gain of 14.32% for USMC.
Over three years, SPY compounded at +22.84% per year against +22.69% for USMC; over five years the annualized figures are +13.50% and +15.04% respectively. Across the full 9-year window we track, USMC has the edge at +14.43% annualized vs +14.17%.
Past performance does not guarantee future results.
Risk: Volatility and Drawdowns
SPY has been the more volatile fund, with annualized monthly volatility of 16.2% compared with 15.4% for USMC. 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 -34.1% for SPY and -30.0% for USMC. Drawdown depth is what each fund did in the worst stretch of the window measured above.
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 0.98% against 0.74% for USMC.
Holdings Overlap
49.2% of SPY's money is in holdings USMC also owns. 99.8% of USMC's money is in holdings SPY also owns.
Most of USMC is already inside SPY. Owning both mostly buys the same companies twice.
26 positions in common, counted across the 504 positions we hold weights for in SPY and 27 in USMC, against full books of 505 and 29.
What only one of them owns
Measured across the 504 and 27 positions we hold weights for.
SPY holds 471 positions USMC does not, 50.1% of the fund.
Largest: GOOG 2.39%, AMD 1.14%, INTC 0.67%, CSCO 0.66%, PLTR 0.63%
Top Shared Holdings
| Stock | Weight in SPY | Weight in USMC | Difference |
|---|---|---|---|
| NVDANvidia Corp | 8.01% | 8.09% | 0.08% |
| AAPLApple, Inc | 7.26% | 7.06% | 0.20% |
| MSFTMicrosoft Corp | 5.66% | 5.69% | 0.03% |
| MUMicron Technology, Inc. | 1.60% | 7.06% | 5.46% |
| GOOGLAlphabet Inc,class A | 2.99% | 5.35% | 2.36% |
| AMZNAmazon.Com Inc | 3.79% | 3.81% | 0.02% |
| AVGOBroadcom Inc | 2.66% | 4.55% | 1.89% |
| JPMJpmorgan Chase | 1.45% | 4.65% | 3.20% |
| VVisa Inc Class A | 0.94% | 4.65% | 3.71% |
| METAMeta Platforms Inc | 1.93% | 3.46% | 1.53% |
99.8% of USMC is already inside SPY.
You probably hold more than these two. Add the rest and see how much of the whole book is the same companies twice.
Free for up to 10 holdings. No account needed.
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, by $3 a year on a $10,000 investment.
Which performed better, SPY or USMC?
Over the past year SPY returned +16.94% vs +13.75% for USMC, so SPY leads on 1-year performance. Over the longest common window we track (9 years), SPY annualized +14.17% vs +14.43% for USMC. Past performance does not guarantee future results. This is information, not a recommendation.
Which is riskier, SPY or USMC?
SPY has been the more volatile fund at 16.2% annualized versus 15.4% for USMC. Worst drawdown: SPY -34.1% 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. What is left to separate them is the fee and the index each one tracks. This is information, not a recommendation.
What is the holdings overlap between SPY and USMC?
99.8% of USMC's money is in holdings SPY also owns. 99.8% of USMC's is in holdings SPY also owns. They hold 26 positions in common, counted across the 504 positions we hold weights for in SPY and 27 in USMC.
Which pays a higher dividend, SPY or USMC?
SPY yields 0.98% while USMC yields 0.74%, so SPY currently pays the higher dividend yield.
Is USMC better than SPY?
SPY has a lower expense ratio. SPY led over 1Y and 3Y, USMC over 5Y and the full window. The two have moved almost in lockstep, correlation 0.97. SPY is less concentrated, with 37.8% of the fund in its ten largest positions against 55.4%. Which one suits a particular account depends on what it is for. This is information, not a recommendation.