LDSF 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

MetricLDSFSPYWinner
Expense Ratio0.77%0.09%
AUM$161M$789.1B
Dividend Yield4.62%1.01%
Holdings8505
YTD Return+1.23%+13.10%
1Y Return+3.42%+22.80%
3Y Return (annualized)+5.17%+20.98%
5Y Return (annualized)+2.44%+13.20%
Volatility (annualized)3.3%15.3%
Max Drawdown-8.7%-56.5%
Fund FamilyFirst Trust Portfolios (US)State Street Investment Management
CategoryFixed IncomeEquity
InceptionJan 2, 2019Jan 22, 1993

LDSF vs SPY Performance

First Trust Low Duration Strategic Focus ETF (LDSF) 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 LDSF returned +3.42% while SPY returned +22.80%. Year to date, LDSF is up 1.23% versus a gain of 13.10% for SPY.

Over three years, LDSF compounded at +5.17% per year against +20.98% for SPY; over five years the annualized figures are +2.44% and +13.20% respectively. Across the full 8-year window we track, SPY has the edge at +8.83% annualized vs +1.72%. 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 3.3% for LDSF. 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 -8.7% for LDSF 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 0.69. They move independently enough that combining them can meaningfully diversify a portfolio.

Fees and Cost Over Time

LDSF charges 0.77% per year while SPY charges 0.09%. On a $10,000 position that is $77 vs $9 annually, a gap of $68 per year that compounds over a long holding period. On income, LDSF currently yields 4.62% against 1.01% for SPY.

Holdings Overlap

0.0%overlap

LDSF and SPY share 0 holdings out of 512 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, LDSF or SPY?

LDSF has an expense ratio of 0.77% while SPY charges 0.09%. SPY is the cheaper option. On a $10,000 investment, that is $68 per year of difference.

Which performed better, LDSF or SPY?

Over the past year LDSF returned +3.42% vs +22.80% for SPY, so SPY leads on 1-year performance. Over the longest common window we track (8 years), LDSF annualized +1.72% vs +8.83% for SPY. Past performance does not guarantee future results.

Which is riskier, LDSF or SPY?

SPY has been the more volatile fund at 15.3% annualized versus 3.3% for LDSF. Worst drawdown: LDSF -8.7% vs SPY -56.5%.

Should I hold both LDSF and SPY?

LDSF and SPY have a monthly-return correlation of 0.69, so combining them can provide real diversification depending on your allocation goals.

What is the holdings overlap between LDSF and SPY?

LDSF and SPY share 0 common holdings with a 0.0% weight overlap. Combined, they hold 512 unique securities.

Which pays a higher dividend, LDSF or SPY?

LDSF yields 4.62% while SPY yields 1.01%, so LDSF currently pays the higher dividend yield.

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