HAPI 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

MetricHAPISPYWinner
Expense Ratio0.35%0.09%
AUM$484M$789.1B
Dividend Yield0.80%1.01%
Holdings155505
YTD Return+9.68%+9.93%
1Y Return+17.44%+19.50%
3Y Return (annualized)+19.72%+19.33%
5Y Return (annualized)-+12.82%
Volatility (annualized)12.8%15.3%
Max Drawdown-19.5%-56.5%
Fund FamilyHarbor FundsState Street Investment Management
CategoryEquityEquity
InceptionOct 12, 2022Jan 22, 1993

HAPI vs SPY Performance

Harbor Human Capital Factor US Large Cap ETF (HAPI) is a ETF from Harbor Funds and State Street SPDR S&P 500 ETF Trust (SPY) is a ETF from State Street Investment Management. Over the past year HAPI returned +17.44% while SPY returned +19.50%. Year to date, HAPI is up 9.68% versus a gain of 9.93% for SPY.

Over three years, HAPI compounded at +19.72% per year against +19.33% for SPY. Across the full 4-year window we track, HAPI has the edge at +23.85% annualized vs +8.74%. 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 12.8% for HAPI. 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 -19.5% for HAPI 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 0.98. They move almost in lockstep, so holding both mostly duplicates the same exposure.

Fees and Cost Over Time

HAPI charges 0.35% per year while SPY charges 0.09%. On a $10,000 position that is $35 vs $9 annually, a gap of $26 per year that compounds over a long holding period. On income, HAPI currently yields 0.80% against 1.01% for SPY.

Holdings Overlap

49.0%overlap

HAPI and SPY share 136 holdings out of 523 unique holdings combined, representing a 49.0% weight overlap.

Moderate overlap means holding both could provide meaningful diversification benefits.

Top Shared Holdings

StockWeight in HAPIWeight in SPYDifference
AAPL6.02%7.09%1.07%
NVDA5.24%7.31%2.07%
AMZN5.40%3.69%1.71%
MSFTProProPro
GOOGLProProPro
METAProProPro
JPMProProPro
LLYProProPro
CSCOProProPro
NFLXProProPro
See all 10 holdings HAPI 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, HAPI or SPY?

HAPI has an expense ratio of 0.35% while SPY charges 0.09%. SPY is the cheaper option. On a $10,000 investment, that is $26 per year of difference.

Which performed better, HAPI or SPY?

Over the past year HAPI returned +17.44% vs +19.50% for SPY, so SPY leads on 1-year performance. Over the longest common window we track (4 years), HAPI annualized +23.85% vs +8.74% for SPY. Past performance does not guarantee future results.

Which is riskier, HAPI or SPY?

SPY has been the more volatile fund at 15.3% annualized versus 12.8% for HAPI. Worst drawdown: HAPI -19.5% vs SPY -56.5%.

Should I hold both HAPI and SPY?

HAPI and SPY have a monthly-return correlation of 0.98, so they move almost identically. Holding both adds little diversification - most investors pick one, usually on fees or the specific index tracked.

What is the holdings overlap between HAPI and SPY?

HAPI and SPY share 136 common holdings with a 49.0% weight overlap. Combined, they hold 523 unique securities.

Which pays a higher dividend, HAPI or SPY?

HAPI yields 0.80% while SPY yields 1.01%, so SPY currently pays the higher dividend yield.

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