SPY vs ZECP

SPY vs ZECP
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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

MetricSPYZECPWinner
Expense Ratio0.09%0.55%
AUM$821.1B$375M
Dividend Yield1.01%0.73%
Holdings50560
YTD Return+12.68%+9.32%
1Y Return+21.82%+17.03%
3Y Return (annualized)+21.98%+16.29%
5Y Return (annualized)+12.89%+9.33%
Volatility (annualized)15.3%14.1%
Max Drawdown-56.5%-21.9%
Fund FamilyState Street Investment ManagementZacks
CategoryEquityEquity
InceptionJan 22, 1993Aug 23, 2021

SPY vs ZECP Performance

State Street SPDR S&P 500 ETF Trust (SPY) is a ETF from State Street Investment Management and Zacks Earnings Consistent Portfolio ETF (ZECP) is a ETF from Zacks. Over the past year SPY returned +21.82% while ZECP returned +17.03%. Year to date, SPY is up 12.68% versus a gain of 9.32% for ZECP.

Over three years, SPY compounded at +21.98% per year against +16.29% for ZECP; over five years the annualized figures are +12.89% and +9.33% respectively. Across the full 5-year window we track, ZECP has the edge at +9.33% annualized vs +8.81%. 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 14.1% for ZECP. 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 -21.9% for ZECP. 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 0.95. 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 ZECP charges 0.55%. On a $10,000 position that is $9 vs $55 annually, a gap of $46 per year that compounds over a long holding period. On income, SPY currently yields 1.01% against 0.73% for ZECP.

Holdings Overlap

31.8%overlap

SPY and ZECP share 59 holdings out of 506 unique holdings combined, representing a 31.8% weight overlap.

Moderate overlap means holding both could provide meaningful diversification benefits.

Top Shared Holdings

StockWeight in SPYWeight in ZECPDifference
AAPL6.83%7.50%0.67%
GOOGL3.33%8.02%4.69%
MSFT5.50%5.82%0.32%
CATProProPro
JPMProProPro
LLYProProPro
WMTProProPro
AMATProProPro
AXPProProPro
CSCOProProPro
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Frequently Asked Questions

Which is cheaper, SPY or ZECP?

SPY has an expense ratio of 0.09% while ZECP charges 0.55%. SPY is the cheaper option. On a $10,000 investment, that is $46 per year of difference.

Which performed better, SPY or ZECP?

Over the past year SPY returned +21.82% vs +17.03% for ZECP, so SPY leads on 1-year performance. Over the longest common window we track (5 years), SPY annualized +8.81% vs +9.33% for ZECP. Past performance does not guarantee future results.

Which is riskier, SPY or ZECP?

SPY has been the more volatile fund at 15.3% annualized versus 14.1% for ZECP. Worst drawdown: SPY -56.5% vs ZECP -21.9%.

Should I hold both SPY and ZECP?

SPY and ZECP have a monthly-return correlation of 0.95, 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 ZECP?

SPY and ZECP share 59 common holdings with a 31.8% weight overlap. Combined, they hold 506 unique securities.

Which pays a higher dividend, SPY or ZECP?

SPY yields 1.01% while ZECP yields 0.73%, so SPY currently pays the higher dividend yield.

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