FMY vs SPY
FMY vs SPY
First Trust Mortgage Income Fund 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 | FMY | SPY | Winner |
|---|---|---|---|
| Expense Ratio | 1.35% | 0.09% | |
| AUM | $52M | $789.1B | |
| Dividend Yield | 6.29% | 1.01% | |
| Holdings | 166 | 505 | |
| YTD Return | -1.91% | +13.10% | |
| 1Y Return | -0.69% | +22.80% | |
| 3Y Return (annualized) | +7.94% | +20.98% | |
| 5Y Return (annualized) | +2.81% | +13.20% | |
| Volatility (annualized) | 8.9% | 15.3% | |
| Max Drawdown | -47.3% | -56.5% | |
| Fund Family | First Trust Portfolios (US) | State Street Investment Management | |
| Category | Fixed Income | Equity | |
| Inception | May 25, 2005 | Jan 22, 1993 |
FMY vs SPY Performance
First Trust Mortgage Income Fund (FMY) is a ETF from First Trust Portfolios (US) and State Street SPDR S&P 500 ETF Trust (SPY) is a ETF from State Street Investment Management. Over the past year FMY returned -0.69% while SPY returned +22.80%. Year to date, FMY is down 1.91% versus a gain of 13.10% for SPY.
Over three years, FMY compounded at +7.94% per year against +20.98% for SPY; over five years the annualized figures are +2.81% and +13.20% respectively. Across the full 21-year window we track, SPY has the edge at +8.83% annualized vs -0.98%. 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 8.9% for FMY. 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 -47.3% for FMY 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 0.42. They move independently enough that combining them can meaningfully diversify a portfolio.
Fees and Cost Over Time
FMY charges 1.35% per year while SPY charges 0.09%. On a $10,000 position that is $135 vs $9 annually, a gap of $126 per year that compounds over a long holding period. On income, FMY currently yields 6.29% against 1.01% for SPY.
Holdings Overlap
FMY and SPY share 0 holdings out of 532 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, FMY or SPY?
FMY has an expense ratio of 1.35% while SPY charges 0.09%. SPY is the cheaper option. On a $10,000 investment, that is $126 per year of difference.
Which performed better, FMY or SPY?
Over the past year FMY returned -0.69% vs +22.80% for SPY, so SPY leads on 1-year performance. Over the longest common window we track (21 years), FMY annualized -0.98% vs +8.83% for SPY. Past performance does not guarantee future results.
Which is riskier, FMY or SPY?
SPY has been the more volatile fund at 15.3% annualized versus 8.9% for FMY. Worst drawdown: FMY -47.3% vs SPY -56.5%.
Should I hold both FMY and SPY?
FMY and SPY have a monthly-return correlation of 0.42, so combining them can provide real diversification depending on your allocation goals.
What is the holdings overlap between FMY and SPY?
FMY and SPY share 0 common holdings with a 0.0% weight overlap. Combined, they hold 532 unique securities.
Which pays a higher dividend, FMY or SPY?
FMY yields 6.29% while SPY yields 1.01%, so FMY currently pays the higher dividend yield.
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