CAAA vs SPY
CAAA vs SPY
First Trust AAA CMBS ETF vs State Street SPDR S&P 500 ETF Trust
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 | CAAA | SPY | Winner |
|---|---|---|---|
| Expense Ratio | 0.30% | 0.09% | |
| AUM | $35M | $789.1B | |
| Dividend Yield | 5.29% | 1.01% | |
| Holdings | 105 | 505 | |
| YTD Return | +0.88% | +11.49% | |
| 1Y Return | +2.91% | +21.37% | |
| 3Y Return (annualized) | - | +20.76% | |
| 5Y Return (annualized) | - | +12.94% | |
| Volatility (annualized) | 3.0% | 15.3% | |
| Max Drawdown | -2.2% | -56.5% | |
| Fund Family | First Trust Portfolios (US) | State Street Investment Management | |
| Category | Fixed Income | Equity | |
| Inception | Feb 27, 2024 | Jan 22, 1993 |
CAAA vs SPY Performance
First Trust AAA CMBS ETF (CAAA) is a ETF from First Trust Portfolios (US) and State Street SPDR S&P 500 ETF Trust (SPY) is a ETF from State Street Investment Management. Over the past year CAAA returned +2.91% while SPY returned +21.37%. Year to date, CAAA is up 0.88% versus a gain of 11.49% for SPY.
Risk: Volatility and Drawdowns
SPY has been the more volatile fund, with annualized monthly volatility of 15.3% compared with 3.0% for CAAA. 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 -2.2% for CAAA and -56.5% for SPY. 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 0.40. They move independently enough that combining them can meaningfully diversify a portfolio.
Fees and Cost Over Time
CAAA charges 0.30% per year while SPY charges 0.09%. On a $10,000 position that is $30 vs $9 annually, a gap of $21 per year that compounds over a long holding period. On income, CAAA currently yields 5.29% against 1.01% for SPY.
Holdings Overlap
CAAA and SPY share 0 holdings out of 551 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, CAAA or SPY?
CAAA has an expense ratio of 0.30% while SPY charges 0.09%. SPY is the cheaper option. On a $10,000 investment, that is $21 per year of difference.
Which performed better, CAAA or SPY?
Over the past year CAAA returned +2.91% vs +21.37% for SPY, so SPY leads on 1-year performance. Over the longest common window we track (2 years), CAAA annualized +5.36% vs +8.78% for SPY. Past performance does not guarantee future results.
Which is riskier, CAAA or SPY?
SPY has been the more volatile fund at 15.3% annualized versus 3.0% for CAAA. Worst drawdown: CAAA -2.2% vs SPY -56.5%.
Should I hold both CAAA and SPY?
CAAA and SPY have a monthly-return correlation of 0.40, so combining them can provide real diversification depending on your allocation goals.
What is the holdings overlap between CAAA and SPY?
CAAA and SPY share 0 common holdings with a 0.0% weight overlap. Combined, they hold 551 unique securities.
Which pays a higher dividend, CAAA or SPY?
CAAA yields 5.29% while SPY yields 1.01%, so CAAA currently pays the higher dividend yield.
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