FT vs SPY

Quick Verdict

FT has a lower expense ratio. SPY delivered stronger 1-year returns. SPY offers more diversification with 503 holdings.

Lower Fees: FTHigher Returns: SPYMore Diversified: SPY

Side-by-Side Comparison

MetricFTSPYWinner
Expense Ratio0.00%0.09%
AUM$212M$789.1B
Dividend Yield5.73%1.01%
Holdings704505
YTD Return+2.08%+13.28%
1Y Return+6.16%+23.94%
3Y Return (annualized)+12.35%+21.07%
5Y Return (annualized)+6.00%+13.27%
Volatility (annualized)15.5%15.3%
Max Drawdown-70.3%-56.5%
Fund FamilyFranklin Templeton Investments (US)State Street Investment Management
CategoryAllocation/BalancedEquity
InceptionSep 23, 1988Jan 22, 1993

FT vs SPY Performance

Franklin Universal Trust (FT) is a ETF from Franklin Templeton Investments (US) and State Street SPDR S&P 500 ETF Trust (SPY) is a ETF from State Street Investment Management. Over the past year FT returned +6.16% while SPY returned +23.94%. Year to date, FT is up 2.08% versus a gain of 13.28% for SPY.

Over three years, FT compounded at +12.35% per year against +21.07% for SPY; over five years the annualized figures are +6.00% and +13.27% respectively. Across the full 31-year window we track, SPY has the edge at +8.84% annualized vs +0.78%. Past performance does not guarantee future results.

Risk: Volatility and Drawdowns

FT has been the more volatile fund, with annualized monthly volatility of 15.5% 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 -70.3% for FT 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 0.54. They move independently enough that combining them can meaningfully diversify a portfolio.

Fees and Cost Over Time

FT charges 0.00% per year while SPY charges 0.09%. On a $10,000 position that is $0 vs $9 annually, a gap of $9 per year that compounds over a long holding period. On income, FT currently yields 5.73% against 1.01% for SPY.

Holdings Overlap

2.0%overlap

FT and SPY share 25 holdings out of 785 unique holdings combined, representing a 2.0% weight overlap.

Moderate overlap means holding both could provide meaningful diversification benefits.

Top Shared Holdings

StockWeight in FTWeight in SPYDifference
NEE4.74%0.28%4.46%
SRE3.81%0.09%3.72%
ETR2.82%0.08%2.74%
EVRGProProPro
LNTProProPro
DUKProProPro
CNPProProPro
SOProProPro
AEPProProPro
CMSProProPro
See all 10 holdings FT shares with SPY
Exact weights in each fund and the difference, for every overlapping position.
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Frequently Asked Questions

Which is cheaper, FT or SPY?

FT has an expense ratio of 0.00% while SPY charges 0.09%. FT is the cheaper option. On a $10,000 investment, that is $9 per year of difference.

Which performed better, FT or SPY?

Over the past year FT returned +6.16% vs +23.94% for SPY, so SPY leads on 1-year performance. Over the longest common window we track (31 years), FT annualized +0.78% vs +8.84% for SPY. Past performance does not guarantee future results.

Which is riskier, FT or SPY?

FT has been the more volatile fund at 15.5% annualized versus 15.3% for SPY. Worst drawdown: FT -70.3% vs SPY -56.5%.

Should I hold both FT and SPY?

FT and SPY have a monthly-return correlation of 0.54, so combining them can provide real diversification depending on your allocation goals.

What is the holdings overlap between FT and SPY?

FT and SPY share 25 common holdings with a 2.0% weight overlap. Combined, they hold 785 unique securities.

Which pays a higher dividend, FT or SPY?

FT yields 5.73% while SPY yields 1.01%, so FT currently pays the higher dividend yield.

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