FTHI 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

MetricFTHISPYWinner
Expense Ratio0.76%0.09%
AUM$2.4B$789.1B
Dividend Yield8.76%1.01%
Holdings208505
YTD Return+6.26%+13.79%
1Y Return+12.09%+23.66%
3Y Return (annualized)+13.74%+21.40%
5Y Return (annualized)+11.16%+13.37%
Volatility (annualized)11.5%15.3%
Max Drawdown-35.5%-56.5%
Fund FamilyFirst Trust Portfolios (US)State Street Investment Management
CategoryAlternativeEquity
InceptionJan 6, 2014Jan 22, 1993

FTHI vs SPY Performance

First Trust BuyWrite Income ETF (FTHI) 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 FTHI returned +12.09% while SPY returned +23.66%. Year to date, FTHI is up 6.26% versus a gain of 13.79% for SPY.

Over three years, FTHI compounded at +13.74% per year against +21.40% for SPY; over five years the annualized figures are +11.16% and +13.37% respectively. Across the full 13-year window we track, SPY has the edge at +8.85% annualized vs +5.00%. 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 11.5% for FTHI. 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 -35.5% for FTHI 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 0.88. They usually move together, but the gap leaves some room for diversification.

Fees and Cost Over Time

FTHI charges 0.76% per year while SPY charges 0.09%. On a $10,000 position that is $76 vs $9 annually, a gap of $67 per year that compounds over a long holding period. On income, FTHI currently yields 8.76% against 1.01% for SPY.

Holdings Overlap

46.0%overlap

FTHI and SPY share 90 holdings out of 581 unique holdings combined, representing a 46.0% weight overlap.

Moderate overlap means holding both could provide meaningful diversification benefits.

Top Shared Holdings

StockWeight in FTHIWeight in SPYDifference
AAPL8.10%7.09%1.01%
NVDA5.63%7.31%1.68%
MSFT1.92%4.43%2.51%
AMZNProProPro
GOOGLProProPro
AVGOProProPro
GOOGProProPro
JPM:USProProPro
METAProProPro
GEVProProPro
See all 10 holdings FTHI 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, FTHI or SPY?

FTHI has an expense ratio of 0.76% while SPY charges 0.09%. SPY is the cheaper option. On a $10,000 investment, that is $67 per year of difference.

Which performed better, FTHI or SPY?

Over the past year FTHI returned +12.09% vs +23.66% for SPY, so SPY leads on 1-year performance. Over the longest common window we track (13 years), FTHI annualized +5.00% vs +8.85% for SPY. Past performance does not guarantee future results.

Which is riskier, FTHI or SPY?

SPY has been the more volatile fund at 15.3% annualized versus 11.5% for FTHI. Worst drawdown: FTHI -35.5% vs SPY -56.5%.

Should I hold both FTHI and SPY?

FTHI and SPY have a monthly-return correlation of 0.88, so combining them can provide real diversification depending on your allocation goals.

What is the holdings overlap between FTHI and SPY?

FTHI and SPY share 90 common holdings with a 46.0% weight overlap. Combined, they hold 581 unique securities.

Which pays a higher dividend, FTHI or SPY?

FTHI yields 8.76% while SPY yields 1.01%, so FTHI currently pays the higher dividend yield.

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