LALT vs SPY
LALT vs SPY
First Trust Multi-Strategy Alternative 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 | LALT | SPY | Winner |
|---|---|---|---|
| Expense Ratio | 1.18% | 0.09% | |
| AUM | $294M | $789.1B | |
| Dividend Yield | 3.68% | 1.01% | |
| Holdings | 9 | 505 | |
| YTD Return | +8.65% | +13.10% | |
| 1Y Return | +16.17% | +22.80% | |
| 3Y Return (annualized) | +9.53% | +20.98% | |
| 5Y Return (annualized) | - | +13.20% | |
| Volatility (annualized) | 4.7% | 15.3% | |
| Max Drawdown | -7.0% | -56.5% | |
| Fund Family | First Trust Portfolios (US) | State Street Investment Management | |
| Category | Alternative | Equity | |
| Inception | Jan 31, 2023 | Jan 22, 1993 |
LALT vs SPY Performance
First Trust Multi-Strategy Alternative ETF (LALT) 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 LALT returned +16.17% while SPY returned +22.80%. Year to date, LALT is up 8.65% versus a gain of 13.10% for SPY.
Over three years, LALT compounded at +9.53% per year against +20.98% for SPY. Across the full 4-year window we track, SPY has the edge at +8.83% annualized vs +8.29%. 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 4.7% for LALT. 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 -7.0% for LALT 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 0.35. They move independently enough that combining them can meaningfully diversify a portfolio.
Fees and Cost Over Time
LALT charges 1.18% per year while SPY charges 0.09%. On a $10,000 position that is $118 vs $9 annually, a gap of $109 per year that compounds over a long holding period. On income, LALT currently yields 3.68% against 1.01% for SPY.
Holdings Overlap
LALT and SPY share 0 holdings out of 510 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, LALT or SPY?
LALT has an expense ratio of 1.18% while SPY charges 0.09%. SPY is the cheaper option. On a $10,000 investment, that is $109 per year of difference.
Which performed better, LALT or SPY?
Over the past year LALT returned +16.17% vs +22.80% for SPY, so SPY leads on 1-year performance. Over the longest common window we track (4 years), LALT annualized +8.29% vs +8.83% for SPY. Past performance does not guarantee future results.
Which is riskier, LALT or SPY?
SPY has been the more volatile fund at 15.3% annualized versus 4.7% for LALT. Worst drawdown: LALT -7.0% vs SPY -56.5%.
Should I hold both LALT and SPY?
LALT and SPY have a monthly-return correlation of 0.35, so combining them can provide real diversification depending on your allocation goals.
What is the holdings overlap between LALT and SPY?
LALT and SPY share 0 common holdings with a 0.0% weight overlap. Combined, they hold 510 unique securities.
Which pays a higher dividend, LALT or SPY?
LALT yields 3.68% while SPY yields 1.01%, so LALT currently pays the higher dividend yield.
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