SPY vs XJAN

Quick Verdict

SPY has a lower expense ratio. SPY delivered stronger 1-year returns. SPY offers more diversification with 505 holdings.

Lower Fees: SPYHigher Returns: SPYMore Diversified: SPY

Side-by-Side Comparison

MetricSPYXJANWinner
Expense Ratio0.09%0.85%
AUM$821.1B$43M
Dividend Yield1.01%0.00%
Holdings5056
YTD Return+14.24%+6.00%
1Y Return+21.71%+9.76%
3Y Return (annualized)+22.10%-
5Y Return (annualized)+13.21%-
Volatility (annualized)15.3%4.5%
Max Drawdown-56.5%-10.0%
Fund FamilyState Street Investment ManagementFirst Trust Portfolios (US)
CategoryEquityAlternative
InceptionJan 22, 1993Jan 22, 2024

SPY vs XJAN Performance

State Street SPDR S&P 500 ETF Trust (SPY) is a ETF from State Street Investment Management and FT Vest US Equity Enhance & Moderate Buffer ETF - January (XJAN) is a ETF from First Trust Portfolios (US). Over the past year SPY returned +21.71% while XJAN returned +9.76%. Year to date, SPY is up 14.24% versus a gain of 6.00% for XJAN.

Risk: Volatility and Drawdowns

SPY has been the more volatile fund, with annualized monthly volatility of 15.3% compared with 4.5% for XJAN. 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 -10.0% for XJAN. 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 0.92. 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 XJAN charges 0.85%. On a $10,000 position that is $9 vs $85 annually, a gap of $76 per year that compounds over a long holding period. On income, SPY currently yields 1.01% against 0.00% for XJAN.

Holdings Overlap

0.0%overlap

SPY and XJAN share 0 holdings out of 505 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 XJAN?

SPY has an expense ratio of 0.09% while XJAN charges 0.85%. SPY is the cheaper option. On a $10,000 investment, that is $76 per year of difference.

Which performed better, SPY or XJAN?

Over the past year SPY returned +21.71% vs +9.76% for XJAN, so SPY leads on 1-year performance. Over the longest common window we track (3 years), SPY annualized +8.86% vs +9.54% for XJAN. Past performance does not guarantee future results.

Which is riskier, SPY or XJAN?

SPY has been the more volatile fund at 15.3% annualized versus 4.5% for XJAN. Worst drawdown: SPY -56.5% vs XJAN -10.0%.

Should I hold both SPY and XJAN?

SPY and XJAN have a monthly-return correlation of 0.92, 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 XJAN?

SPY and XJAN share 0 common holdings with a 0.0% weight overlap. Combined, they hold 505 unique securities.

Which pays a higher dividend, SPY or XJAN?

SPY yields 1.01% while XJAN yields 0.00%, so SPY currently pays the higher dividend yield.

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