MCR vs SPY
MCR vs SPY
MFS Charter Income Trust vs State Street SPDR S&P 500 ETF Trust
Quick Verdict
SPY has a lower expense ratio. SPY delivered stronger 1-year returns. MCR offers more diversification with 549 holdings.
Side-by-Side Comparison
| Metric | MCR | SPY | Winner |
|---|---|---|---|
| Expense Ratio | 1.02% | 0.09% | |
| AUM | $270M | $789.1B | |
| Dividend Yield | 8.17% | 1.01% | |
| Holdings | 1,076 | 505 | |
| YTD Return | -0.55% | +9.93% | |
| 1Y Return | +3.59% | +19.50% | |
| 3Y Return (annualized) | +7.80% | +19.33% | |
| 5Y Return (annualized) | +0.97% | +12.82% | |
| Volatility (annualized) | 10.2% | 15.3% | |
| Max Drawdown | -45.2% | -56.5% | |
| Fund Family | MFS Investment Management | State Street Investment Management | |
| Category | Fixed Income | Equity | |
| Inception | Jul 20, 1989 | Jan 22, 1993 |
MCR vs SPY Performance
MFS Charter Income Trust (MCR) is a ETF from MFS Investment Management and State Street SPDR S&P 500 ETF Trust (SPY) is a ETF from State Street Investment Management. Over the past year MCR returned +3.59% while SPY returned +19.50%. Year to date, MCR is down 0.55% versus a gain of 9.93% for SPY.
Over three years, MCR compounded at +7.80% per year against +19.33% for SPY; over five years the annualized figures are +0.97% and +12.82% respectively. Across the full 31-year window we track, SPY has the edge at +8.74% annualized vs +0.16%. 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 10.2% for MCR. 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 -45.2% for MCR 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 0.51. They move independently enough that combining them can meaningfully diversify a portfolio.
Fees and Cost Over Time
MCR charges 1.02% per year while SPY charges 0.09%. On a $10,000 position that is $102 vs $9 annually, a gap of $93 per year that compounds over a long holding period. On income, MCR currently yields 8.17% against 1.01% for SPY.
Holdings Overlap
MCR and SPY share 0 holdings out of 1052 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, MCR or SPY?
MCR has an expense ratio of 1.02% while SPY charges 0.09%. SPY is the cheaper option. On a $10,000 investment, that is $93 per year of difference.
Which performed better, MCR or SPY?
Over the past year MCR returned +3.59% vs +19.50% for SPY, so SPY leads on 1-year performance. Over the longest common window we track (31 years), MCR annualized +0.16% vs +8.74% for SPY. Past performance does not guarantee future results.
Which is riskier, MCR or SPY?
SPY has been the more volatile fund at 15.3% annualized versus 10.2% for MCR. Worst drawdown: MCR -45.2% vs SPY -56.5%.
Should I hold both MCR and SPY?
MCR and SPY have a monthly-return correlation of 0.51, so combining them can provide real diversification depending on your allocation goals.
What is the holdings overlap between MCR and SPY?
MCR and SPY share 0 common holdings with a 0.0% weight overlap. Combined, they hold 1052 unique securities.
Which pays a higher dividend, MCR or SPY?
MCR yields 8.17% while SPY yields 1.01%, so MCR currently pays the higher dividend yield.
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