FLTB 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

MetricFLTBSPYWinner
Expense Ratio0.25%0.09%
AUM$408M$789.1B
Dividend Yield4.76%1.01%
Holdings937505
YTD Return+1.16%+13.50%
1Y Return+3.40%+23.56%
3Y Return (annualized)+5.54%+21.17%
5Y Return (annualized)+2.29%+13.46%
Volatility (annualized)128.3%15.3%
Max Drawdown-73.5%-56.5%
Fund FamilyFidelity Investments (US)State Street Investment Management
CategoryFixed IncomeEquity
InceptionOct 6, 2014Jan 22, 1993

FLTB vs SPY Performance

Fidelity Limited Term Bond ETF (FLTB) 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 FLTB returned +3.40% while SPY returned +23.56%. Year to date, FLTB is up 1.16% versus a gain of 13.50% for SPY.

Over three years, FLTB compounded at +5.54% per year against +21.17% for SPY; over five years the annualized figures are +2.29% and +13.46% respectively. Across the full 23-year window we track, SPY has the edge at +8.85% annualized vs +7.74%. Past performance does not guarantee future results.

Risk: Volatility and Drawdowns

FLTB has been the more volatile fund, with annualized monthly volatility of 128.3% 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 -73.5% for FLTB 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 0.06. They move independently enough that combining them can meaningfully diversify a portfolio.

Fees and Cost Over Time

FLTB charges 0.25% per year while SPY charges 0.09%. On a $10,000 position that is $25 vs $9 annually, a gap of $16 per year that compounds over a long holding period. On income, FLTB currently yields 4.76% against 1.01% for SPY.

Holdings Overlap

0.0%overlap

FLTB and SPY share 1 holdings out of 519 unique holdings combined, representing a 0.0% weight overlap.

Moderate overlap means holding both could provide meaningful diversification benefits.

Top Shared Holdings

StockWeight in FLTBWeight in SPYDifference
SATS0.04%0.02%0.02%

Frequently Asked Questions

Which is cheaper, FLTB or SPY?

FLTB has an expense ratio of 0.25% while SPY charges 0.09%. SPY is the cheaper option. On a $10,000 investment, that is $16 per year of difference.

Which performed better, FLTB or SPY?

Over the past year FLTB returned +3.40% vs +23.56% for SPY, so SPY leads on 1-year performance. Over the longest common window we track (23 years), FLTB annualized +7.74% vs +8.85% for SPY. Past performance does not guarantee future results.

Which is riskier, FLTB or SPY?

FLTB has been the more volatile fund at 128.3% annualized versus 15.3% for SPY. Worst drawdown: FLTB -73.5% vs SPY -56.5%.

Should I hold both FLTB and SPY?

FLTB and SPY have a monthly-return correlation of 0.06, so combining them can provide real diversification depending on your allocation goals.

What is the holdings overlap between FLTB and SPY?

FLTB and SPY share 1 common holdings with a 0.0% weight overlap. Combined, they hold 519 unique securities.

Which pays a higher dividend, FLTB or SPY?

FLTB yields 4.76% while SPY yields 1.01%, so FLTB currently pays the higher dividend yield.

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