FTCB vs SPY
FTCB vs SPY
First Trust Core Investment Grade 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 | FTCB | SPY | Winner |
|---|---|---|---|
| Expense Ratio | 0.56% | 0.09% | |
| AUM | $2.5B | $789.1B | |
| Dividend Yield | 5.24% | 1.01% | |
| Holdings | 721 | 505 | |
| YTD Return | +0.22% | +13.50% | |
| 1Y Return | +2.53% | +23.56% | |
| 3Y Return (annualized) | - | +21.17% | |
| 5Y Return (annualized) | - | +13.46% | |
| Volatility (annualized) | 5.1% | 15.3% | |
| Max Drawdown | -5.0% | -56.5% | |
| Fund Family | First Trust Portfolios (US) | State Street Investment Management | |
| Category | Fixed Income | Equity | |
| Inception | Nov 7, 2023 | Jan 22, 1993 |
FTCB vs SPY Performance
First Trust Core Investment Grade ETF (FTCB) 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 FTCB returned +2.53% while SPY returned +23.56%. Year to date, FTCB is up 0.22% versus a gain of 13.50% for SPY.
Risk: Volatility and Drawdowns
SPY has been the more volatile fund, with annualized monthly volatility of 15.3% compared with 5.1% for FTCB. 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 -5.0% for FTCB 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 0.37. They move independently enough that combining them can meaningfully diversify a portfolio.
Fees and Cost Over Time
FTCB charges 0.56% per year while SPY charges 0.09%. On a $10,000 position that is $56 vs $9 annually, a gap of $47 per year that compounds over a long holding period. On income, FTCB currently yields 5.24% against 1.01% for SPY.
Holdings Overlap
FTCB and SPY share 0 holdings out of 834 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, FTCB or SPY?
FTCB has an expense ratio of 0.56% while SPY charges 0.09%. SPY is the cheaper option. On a $10,000 investment, that is $47 per year of difference.
Which performed better, FTCB or SPY?
Over the past year FTCB returned +2.53% vs +23.56% for SPY, so SPY leads on 1-year performance. Over the longest common window we track (3 years), FTCB annualized +5.83% vs +8.85% for SPY. Past performance does not guarantee future results.
Which is riskier, FTCB or SPY?
SPY has been the more volatile fund at 15.3% annualized versus 5.1% for FTCB. Worst drawdown: FTCB -5.0% vs SPY -56.5%.
Should I hold both FTCB and SPY?
FTCB and SPY have a monthly-return correlation of 0.37, so combining them can provide real diversification depending on your allocation goals.
What is the holdings overlap between FTCB and SPY?
FTCB and SPY share 0 common holdings with a 0.0% weight overlap. Combined, they hold 834 unique securities.
Which pays a higher dividend, FTCB or SPY?
FTCB yields 5.24% while SPY yields 1.01%, so FTCB currently pays the higher dividend yield.
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