ESMV vs SPY

Quick Verdict

SPY has a lower expense ratio. SPY delivered stronger 1-year returns. SPY offers more diversification with 503 holdings.

Lower Fees: SPYHigher Returns: SPYMore Diversified: SPY

Side-by-Side Comparison

MetricESMVSPYWinner
Expense Ratio0.18%0.09%
AUM$8M$789.1B
Dividend Yield1.51%1.01%
Holdings160505
YTD Return+7.85%+9.93%
1Y Return+9.23%+19.50%
3Y Return (annualized)+10.26%+19.33%
5Y Return (annualized)-+12.82%
Volatility (annualized)13.1%15.3%
Max Drawdown-19.8%-56.5%
Fund FamilyiShares by BlackRock (US)State Street Investment Management
CategoryEquityEquity
InceptionNov 2, 2021Jan 22, 1993

ESMV vs SPY Performance

iShares ESG Optimized MSCI USA Min Vol Factor ETF (ESMV) is a ETF from iShares by BlackRock (US) and State Street SPDR S&P 500 ETF Trust (SPY) is a ETF from State Street Investment Management. Over the past year ESMV returned +9.23% while SPY returned +19.50%. Year to date, ESMV is up 7.85% versus a gain of 9.93% for SPY.

Over three years, ESMV compounded at +10.26% per year against +19.33% for SPY. Across the full 5-year window we track, SPY has the edge at +8.74% annualized vs +5.97%. 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 13.1% for ESMV. 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 -19.8% for ESMV 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 0.87. They usually move together, but the gap leaves some room for diversification.

Fees and Cost Over Time

ESMV charges 0.18% per year while SPY charges 0.09%. On a $10,000 position that is $18 vs $9 annually, a gap of $9 per year that compounds over a long holding period. On income, ESMV currently yields 1.51% against 1.01% for SPY.

Holdings Overlap

30.2%overlap

ESMV and SPY share 139 holdings out of 521 unique holdings combined, representing a 30.2% weight overlap.

Moderate overlap means holding both could provide meaningful diversification benefits.

Top Shared Holdings

StockWeight in ESMVWeight in SPYDifference
NVDA1.27%7.31%6.04%
AAPL0.58%7.09%6.51%
MSFT1.33%4.43%3.10%
AVGOProProPro
GOOGProProPro
AMDProProPro
MUProProPro
PANWProProPro
AMATProProPro
LLYProProPro
See all 10 holdings ESMV shares with SPY
Exact weights in each fund and the difference, for every overlapping position.
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Frequently Asked Questions

Which is cheaper, ESMV or SPY?

ESMV has an expense ratio of 0.18% while SPY charges 0.09%. SPY is the cheaper option. On a $10,000 investment, that is $9 per year of difference.

Which performed better, ESMV or SPY?

Over the past year ESMV returned +9.23% vs +19.50% for SPY, so SPY leads on 1-year performance. Over the longest common window we track (5 years), ESMV annualized +5.97% vs +8.74% for SPY. Past performance does not guarantee future results.

Which is riskier, ESMV or SPY?

SPY has been the more volatile fund at 15.3% annualized versus 13.1% for ESMV. Worst drawdown: ESMV -19.8% vs SPY -56.5%.

Should I hold both ESMV and SPY?

ESMV and SPY have a monthly-return correlation of 0.87, so combining them can provide real diversification depending on your allocation goals.

What is the holdings overlap between ESMV and SPY?

ESMV and SPY share 139 common holdings with a 30.2% weight overlap. Combined, they hold 521 unique securities.

Which pays a higher dividend, ESMV or SPY?

ESMV yields 1.51% while SPY yields 1.01%, so ESMV currently pays the higher dividend yield.

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