FARX 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

MetricFARXSPYWinner
Expense Ratio0.95%0.09%
AUM$13M$789.1B
Dividend Yield2.90%1.01%
Holdings13505
YTD Return+8.64%+13.28%
1Y Return+18.00%+23.94%
3Y Return (annualized)-+21.07%
5Y Return (annualized)-+13.27%
Volatility (annualized)5.0%15.3%
Max Drawdown-5.8%-56.5%
Fund FamilyFrontier Asset ManagementState Street Investment Management
CategoryEquityEquity
InceptionDec 19, 2024Jan 22, 1993

FARX vs SPY Performance

Frontier Asset Absolute Return ETF (FARX) is a ETF from Frontier Asset Management and State Street SPDR S&P 500 ETF Trust (SPY) is a ETF from State Street Investment Management. Over the past year FARX returned +18.00% while SPY returned +23.94%. Year to date, FARX is up 8.64% versus a gain of 13.28% for SPY.

Risk: Volatility and Drawdowns

SPY has been the more volatile fund, with annualized monthly volatility of 15.3% compared with 5.0% for FARX. 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 -5.8% for FARX 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 0.47. They move independently enough that combining them can meaningfully diversify a portfolio.

Fees and Cost Over Time

FARX charges 0.95% per year while SPY charges 0.09%. On a $10,000 position that is $95 vs $9 annually, a gap of $86 per year that compounds over a long holding period. On income, FARX currently yields 2.90% against 1.01% for SPY.

Holdings Overlap

0.0%overlap

FARX and SPY share 0 holdings out of 515 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, FARX or SPY?

FARX has an expense ratio of 0.95% while SPY charges 0.09%. SPY is the cheaper option. On a $10,000 investment, that is $86 per year of difference.

Which performed better, FARX or SPY?

Over the past year FARX returned +18.00% vs +23.94% for SPY, so SPY leads on 1-year performance. Over the longest common window we track (2 years), FARX annualized +12.42% vs +8.84% for SPY. Past performance does not guarantee future results.

Which is riskier, FARX or SPY?

SPY has been the more volatile fund at 15.3% annualized versus 5.0% for FARX. Worst drawdown: FARX -5.8% vs SPY -56.5%.

Should I hold both FARX and SPY?

FARX and SPY have a monthly-return correlation of 0.47, so combining them can provide real diversification depending on your allocation goals.

What is the holdings overlap between FARX and SPY?

FARX and SPY share 0 common holdings with a 0.0% weight overlap. Combined, they hold 515 unique securities.

Which pays a higher dividend, FARX or SPY?

FARX yields 2.90% while SPY yields 1.01%, so FARX currently pays the higher dividend yield.

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