FHEQ vs SPY
FHEQ vs SPY
Fidelity Hedged Equity 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 | FHEQ | SPY | Winner |
|---|---|---|---|
| Expense Ratio | 0.48% | 0.09% | |
| AUM | $897M | $789.1B | |
| Dividend Yield | 0.55% | 1.01% | |
| Holdings | 172 | 505 | |
| YTD Return | +9.54% | +11.49% | |
| 1Y Return | +16.56% | +21.37% | |
| 3Y Return (annualized) | - | +20.76% | |
| 5Y Return (annualized) | - | +12.94% | |
| Volatility (annualized) | 9.6% | 15.3% | |
| Max Drawdown | -11.1% | -56.5% | |
| Fund Family | Fidelity Investments (US) | State Street Investment Management | |
| Category | Equity | Equity | |
| Inception | Apr 9, 2024 | Jan 22, 1993 |
FHEQ vs SPY Performance
Fidelity Hedged Equity ETF (FHEQ) is a ETF from Fidelity Investments (US) and State Street SPDR S&P 500 ETF Trust (SPY) is a ETF from State Street Investment Management. Over the past year FHEQ returned +16.56% while SPY returned +21.37%. Year to date, FHEQ is up 9.54% 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 9.6% for FHEQ. 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 -11.1% for FHEQ 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 0.97. They move almost in lockstep, so holding both mostly duplicates the same exposure.
Fees and Cost Over Time
FHEQ charges 0.48% per year while SPY charges 0.09%. On a $10,000 position that is $48 vs $9 annually, a gap of $39 per year that compounds over a long holding period. On income, FHEQ currently yields 0.55% against 1.01% for SPY.
Holdings Overlap
FHEQ and SPY share 97 holdings out of 574 unique holdings combined, representing a 61.0% weight overlap.
High overlap means holding both may not provide much additional diversification.
Top Shared Holdings
| Stock | Weight in FHEQ | Weight in SPY | Difference |
|---|---|---|---|
| NVDA | 7.84% | 7.31% | 0.53% |
| AAPL | 6.94% | 7.09% | 0.15% |
| MSFT | 4.11% | 4.43% | 0.32% |
| AMZN | Pro | Pro | Pro |
| GOOGL | Pro | Pro | Pro |
| AVGO | Pro | Pro | Pro |
| GOOG | Pro | Pro | Pro |
| META | Pro | Pro | Pro |
| MU | Pro | Pro | Pro |
| LLY | Pro | Pro | Pro |
See all 10 holdings FHEQ shares with SPY Exact weights in each fund and the difference, for every overlapping position. Get FundXLS Pro: $29/moFirst 500 subscribers, then $49/mo. Cancel anytime. | |||
Frequently Asked Questions
Which is cheaper, FHEQ or SPY?
FHEQ has an expense ratio of 0.48% while SPY charges 0.09%. SPY is the cheaper option. On a $10,000 investment, that is $39 per year of difference.
Which performed better, FHEQ or SPY?
Over the past year FHEQ returned +16.56% vs +21.37% for SPY, so SPY leads on 1-year performance. Over the longest common window we track (2 years), FHEQ annualized +14.65% vs +8.78% for SPY. Past performance does not guarantee future results.
Which is riskier, FHEQ or SPY?
SPY has been the more volatile fund at 15.3% annualized versus 9.6% for FHEQ. Worst drawdown: FHEQ -11.1% vs SPY -56.5%.
Should I hold both FHEQ and SPY?
FHEQ and SPY have a monthly-return correlation of 0.97, 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 FHEQ and SPY?
FHEQ and SPY share 97 common holdings with a 61.0% weight overlap. Combined, they hold 574 unique securities.
Which pays a higher dividend, FHEQ or SPY?
FHEQ yields 0.55% while SPY yields 1.01%, so SPY currently pays the higher dividend yield.
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