LMBS vs SPY
LMBS vs SPY
First Trust Low Duration Opportunities ETF vs State Street SPDR S&P 500 ETF Trust
Quick Verdict
SPY has a lower expense ratio. SPY delivered stronger 1-year returns. LMBS offers more diversification with 764 holdings.
Side-by-Side Comparison
| Metric | LMBS | SPY | Winner |
|---|---|---|---|
| Expense Ratio | 0.65% | 0.09% | |
| AUM | $6.4B | $789.1B | |
| Dividend Yield | 4.10% | 1.01% | |
| Holdings | 1,213 | 505 | |
| YTD Return | +1.53% | +11.49% | |
| 1Y Return | +4.04% | +21.37% | |
| 3Y Return (annualized) | +5.67% | +20.76% | |
| 5Y Return (annualized) | +3.00% | +12.94% | |
| Volatility (annualized) | 2.2% | 15.3% | |
| Max Drawdown | -8.5% | -56.5% | |
| Fund Family | First Trust Portfolios (US) | State Street Investment Management | |
| Category | Fixed Income | Equity | |
| Inception | Nov 4, 2014 | Jan 22, 1993 |
LMBS vs SPY Performance
First Trust Low Duration Opportunities ETF (LMBS) 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 LMBS returned +4.04% while SPY returned +21.37%. Year to date, LMBS is up 1.53% versus a gain of 11.49% for SPY.
Over three years, LMBS compounded at +5.67% per year against +20.76% for SPY; over five years the annualized figures are +3.00% and +12.94% respectively. Across the full 12-year window we track, SPY has the edge at +8.78% annualized vs +1.49%. 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 2.2% for LMBS. 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 -8.5% for LMBS 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 0.41. They move independently enough that combining them can meaningfully diversify a portfolio.
Fees and Cost Over Time
LMBS charges 0.65% per year while SPY charges 0.09%. On a $10,000 position that is $65 vs $9 annually, a gap of $56 per year that compounds over a long holding period. On income, LMBS currently yields 4.10% against 1.01% for SPY.
Holdings Overlap
LMBS and SPY share 0 holdings out of 1267 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, LMBS or SPY?
LMBS has an expense ratio of 0.65% while SPY charges 0.09%. SPY is the cheaper option. On a $10,000 investment, that is $56 per year of difference.
Which performed better, LMBS or SPY?
Over the past year LMBS returned +4.04% vs +21.37% for SPY, so SPY leads on 1-year performance. Over the longest common window we track (12 years), LMBS annualized +1.49% vs +8.78% for SPY. Past performance does not guarantee future results.
Which is riskier, LMBS or SPY?
SPY has been the more volatile fund at 15.3% annualized versus 2.2% for LMBS. Worst drawdown: LMBS -8.5% vs SPY -56.5%.
Should I hold both LMBS and SPY?
LMBS and SPY have a monthly-return correlation of 0.41, so combining them can provide real diversification depending on your allocation goals.
What is the holdings overlap between LMBS and SPY?
LMBS and SPY share 0 common holdings with a 0.0% weight overlap. Combined, they hold 1267 unique securities.
Which pays a higher dividend, LMBS or SPY?
LMBS yields 4.10% while SPY yields 1.01%, so LMBS currently pays the higher dividend yield.
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