FSEC vs SPY

Quick Verdict

SPY has a lower expense ratio. SPY delivered stronger 1-year returns. FSEC offers more diversification with 731 holdings.

Lower Fees: SPYHigher Returns: SPYMore Diversified: FSEC

Side-by-Side Comparison

MetricFSECSPYWinner
Expense Ratio0.36%0.09%
AUM$4.7B$789.1B
Dividend Yield4.75%1.01%
Holdings1,026505
YTD Return+0.46%+11.49%
1Y Return+3.59%+21.37%
3Y Return (annualized)+5.08%+20.76%
5Y Return (annualized)+0.22%+12.94%
Volatility (annualized)6.6%15.3%
Max Drawdown-18.0%-56.5%
Fund FamilyFidelity Investments (US)State Street Investment Management
CategoryFixed IncomeEquity
InceptionMar 2, 2021Jan 22, 1993

FSEC vs SPY Performance

Fidelity Investment Grade Securitized ETF (FSEC) 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 FSEC returned +3.59% while SPY returned +21.37%. Year to date, FSEC is up 0.46% versus a gain of 11.49% for SPY.

Over three years, FSEC compounded at +5.08% per year against +20.76% for SPY; over five years the annualized figures are +0.22% and +12.94% respectively. Across the full 5-year window we track, SPY has the edge at +8.78% annualized vs +0.34%. 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 6.6% for FSEC. 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 -18.0% for FSEC 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 0.62. They move independently enough that combining them can meaningfully diversify a portfolio.

Fees and Cost Over Time

FSEC charges 0.36% per year while SPY charges 0.09%. On a $10,000 position that is $36 vs $9 annually, a gap of $27 per year that compounds over a long holding period. On income, FSEC currently yields 4.75% against 1.01% for SPY.

Holdings Overlap

0.0%overlap

FSEC and SPY share 0 holdings out of 1234 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, FSEC or SPY?

FSEC has an expense ratio of 0.36% while SPY charges 0.09%. SPY is the cheaper option. On a $10,000 investment, that is $27 per year of difference.

Which performed better, FSEC or SPY?

Over the past year FSEC returned +3.59% vs +21.37% for SPY, so SPY leads on 1-year performance. Over the longest common window we track (5 years), FSEC annualized +0.34% vs +8.78% for SPY. Past performance does not guarantee future results.

Which is riskier, FSEC or SPY?

SPY has been the more volatile fund at 15.3% annualized versus 6.6% for FSEC. Worst drawdown: FSEC -18.0% vs SPY -56.5%.

Should I hold both FSEC and SPY?

FSEC and SPY have a monthly-return correlation of 0.62, so combining them can provide real diversification depending on your allocation goals.

What is the holdings overlap between FSEC and SPY?

FSEC and SPY share 0 common holdings with a 0.0% weight overlap. Combined, they hold 1234 unique securities.

Which pays a higher dividend, FSEC or SPY?

FSEC yields 4.75% while SPY yields 1.01%, so FSEC currently pays the higher dividend yield.

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