FTSD vs SPY
FTSD vs SPY
Franklin Short Duration US Government 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 | FTSD | SPY | Winner |
|---|---|---|---|
| Expense Ratio | 0.25% | 0.09% | |
| AUM | $302M | $789.1B | |
| Dividend Yield | 4.54% | 1.01% | |
| Holdings | 342 | 505 | |
| YTD Return | +1.05% | +13.79% | |
| 1Y Return | +3.41% | +23.66% | |
| 3Y Return (annualized) | +4.82% | +21.40% | |
| 5Y Return (annualized) | +2.56% | +13.37% | |
| Volatility (annualized) | 1.3% | 15.3% | |
| Max Drawdown | -9.8% | -56.5% | |
| Fund Family | Franklin Templeton Investments (US) | State Street Investment Management | |
| Category | Fixed Income | Equity | |
| Inception | Nov 4, 2013 | Jan 22, 1993 |
FTSD vs SPY Performance
Franklin Short Duration US Government ETF (FTSD) 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 FTSD returned +3.41% while SPY returned +23.66%. Year to date, FTSD is up 1.05% versus a gain of 13.79% for SPY.
Over three years, FTSD compounded at +4.82% per year against +21.40% for SPY; over five years the annualized figures are +2.56% and +13.37% respectively. Across the full 13-year window we track, SPY has the edge at +8.85% annualized vs +0.60%. 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 1.3% for FTSD. 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 -9.8% for FTSD 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 0.24. They move independently enough that combining them can meaningfully diversify a portfolio.
Fees and Cost Over Time
FTSD charges 0.25% per year while SPY charges 0.09%. On a $10,000 position that is $25 vs $9 annually, a gap of $16 per year that compounds over a long holding period. On income, FTSD currently yields 4.54% against 1.01% for SPY.
Holdings Overlap
FTSD and SPY share 0 holdings out of 542 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, FTSD or SPY?
FTSD has an expense ratio of 0.25% while SPY charges 0.09%. SPY is the cheaper option. On a $10,000 investment, that is $16 per year of difference.
Which performed better, FTSD or SPY?
Over the past year FTSD returned +3.41% vs +23.66% for SPY, so SPY leads on 1-year performance. Over the longest common window we track (13 years), FTSD annualized +0.60% vs +8.85% for SPY. Past performance does not guarantee future results.
Which is riskier, FTSD or SPY?
SPY has been the more volatile fund at 15.3% annualized versus 1.3% for FTSD. Worst drawdown: FTSD -9.8% vs SPY -56.5%.
Should I hold both FTSD and SPY?
FTSD and SPY have a monthly-return correlation of 0.24, so combining them can provide real diversification depending on your allocation goals.
What is the holdings overlap between FTSD and SPY?
FTSD and SPY share 0 common holdings with a 0.0% weight overlap. Combined, they hold 542 unique securities.
Which pays a higher dividend, FTSD or SPY?
FTSD yields 4.54% while SPY yields 1.01%, so FTSD currently pays the higher dividend yield.
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