GDO vs SPY
GDO vs SPY
Western Asset Global Corporate Defined Opportunity Fund Inc. 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 | GDO | SPY | Winner |
|---|---|---|---|
| Expense Ratio | 1.20% | 0.09% | |
| AUM | $84M | $789.1B | |
| Dividend Yield | 12.86% | 1.01% | |
| Holdings | 330 | 505 | |
| YTD Return | -5.89% | +11.49% | |
| 1Y Return | +0.19% | +21.37% | |
| 3Y Return (annualized) | +5.90% | +20.76% | |
| 5Y Return (annualized) | -1.22% | +12.94% | |
| Volatility (annualized) | 12.7% | 15.3% | |
| Max Drawdown | -41.8% | -56.5% | |
| Fund Family | Franklin Templeton Investments (US) | State Street Investment Management | |
| Category | Fixed Income | Equity | |
| Inception | Nov 24, 2009 | Jan 22, 1993 |
GDO vs SPY Performance
Western Asset Global Corporate Defined Opportunity Fund Inc. (GDO) 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 GDO returned +0.19% while SPY returned +21.37%. Year to date, GDO is down 5.89% versus a gain of 11.49% for SPY.
Over three years, GDO compounded at +5.90% per year against +20.76% for SPY; over five years the annualized figures are -1.22% and +12.94% respectively. Across the full 17-year window we track, SPY has the edge at +8.78% annualized vs -0.61%. 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 12.7% for GDO. 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 -41.8% for GDO 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 0.68. They move independently enough that combining them can meaningfully diversify a portfolio.
Fees and Cost Over Time
GDO charges 1.20% per year while SPY charges 0.09%. On a $10,000 position that is $120 vs $9 annually, a gap of $111 per year that compounds over a long holding period. On income, GDO currently yields 12.86% against 1.01% for SPY.
Holdings Overlap
GDO and SPY share 0 holdings out of 716 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, GDO or SPY?
GDO has an expense ratio of 1.20% while SPY charges 0.09%. SPY is the cheaper option. On a $10,000 investment, that is $111 per year of difference.
Which performed better, GDO or SPY?
Over the past year GDO returned +0.19% vs +21.37% for SPY, so SPY leads on 1-year performance. Over the longest common window we track (17 years), GDO annualized -0.61% vs +8.78% for SPY. Past performance does not guarantee future results.
Which is riskier, GDO or SPY?
SPY has been the more volatile fund at 15.3% annualized versus 12.7% for GDO. Worst drawdown: GDO -41.8% vs SPY -56.5%.
Should I hold both GDO and SPY?
GDO and SPY have a monthly-return correlation of 0.68, so combining them can provide real diversification depending on your allocation goals.
What is the holdings overlap between GDO and SPY?
GDO and SPY share 0 common holdings with a 0.0% weight overlap. Combined, they hold 716 unique securities.
Which pays a higher dividend, GDO or SPY?
GDO yields 12.86% while SPY yields 1.01%, so GDO currently pays the higher dividend yield.
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