EMD vs SPY
EMD vs SPY
Western Asset Emerging Markets Debt Fund Inc 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 | EMD | SPY | Winner |
|---|---|---|---|
| Expense Ratio | 1.59% | 0.09% | |
| AUM | $636M | $789.1B | |
| Dividend Yield | 9.68% | 1.01% | |
| Holdings | 278 | 505 | |
| YTD Return | +4.76% | +13.10% | |
| 1Y Return | +15.97% | +22.80% | |
| 3Y Return (annualized) | +17.52% | +20.98% | |
| 5Y Return (annualized) | +4.95% | +13.20% | |
| Volatility (annualized) | 17.2% | 15.3% | |
| Max Drawdown | -64.5% | -56.5% | |
| Fund Family | Franklin Templeton Investments (US) | State Street Investment Management | |
| Category | Fixed Income | Equity | |
| Inception | Dec 1, 2003 | Jan 22, 1993 |
EMD vs SPY Performance
Western Asset Emerging Markets Debt Fund Inc (EMD) is a ETF from Franklin Templeton Investments (US) and State Street SPDR S&P 500 ETF Trust (SPY) is a ETF from State Street Investment Management. Over the past year EMD returned +15.97% while SPY returned +22.80%. Year to date, EMD is up 4.76% versus a gain of 13.10% for SPY.
Over three years, EMD compounded at +17.52% per year against +20.98% for SPY; over five years the annualized figures are +4.95% and +13.20% respectively. Across the full 23-year window we track, SPY has the edge at +8.83% annualized vs -0.32%. Past performance does not guarantee future results.
Risk: Volatility and Drawdowns
EMD has been the more volatile fund, with annualized monthly volatility of 17.2% 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 -64.5% for EMD 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 0.66. They move independently enough that combining them can meaningfully diversify a portfolio.
Fees and Cost Over Time
EMD charges 1.59% per year while SPY charges 0.09%. On a $10,000 position that is $159 vs $9 annually, a gap of $150 per year that compounds over a long holding period. On income, EMD currently yields 9.68% against 1.01% for SPY.
Holdings Overlap
EMD and SPY share 0 holdings out of 639 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, EMD or SPY?
EMD has an expense ratio of 1.59% while SPY charges 0.09%. SPY is the cheaper option. On a $10,000 investment, that is $150 per year of difference.
Which performed better, EMD or SPY?
Over the past year EMD returned +15.97% vs +22.80% for SPY, so SPY leads on 1-year performance. Over the longest common window we track (23 years), EMD annualized -0.32% vs +8.83% for SPY. Past performance does not guarantee future results.
Which is riskier, EMD or SPY?
EMD has been the more volatile fund at 17.2% annualized versus 15.3% for SPY. Worst drawdown: EMD -64.5% vs SPY -56.5%.
Should I hold both EMD and SPY?
EMD and SPY have a monthly-return correlation of 0.66, so combining them can provide real diversification depending on your allocation goals.
What is the holdings overlap between EMD and SPY?
EMD and SPY share 0 common holdings with a 0.0% weight overlap. Combined, they hold 639 unique securities.
Which pays a higher dividend, EMD or SPY?
EMD yields 9.68% while SPY yields 1.01%, so EMD currently pays the higher dividend yield.
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