MMSC vs SPY
MMSC vs SPY
First Trust Multi-Manager Small Cap Opportunities ETF vs State Street SPDR S&P 500 ETF Trust
Quick Verdict
SPY has a lower expense ratio. MMSC delivered stronger 1-year returns. SPY offers more diversification with 503 holdings.
Side-by-Side Comparison
| Metric | MMSC | SPY | Winner |
|---|---|---|---|
| Expense Ratio | 0.95% | 0.09% | |
| AUM | $51M | $789.1B | |
| Dividend Yield | 0.00% | 1.01% | |
| Holdings | 202 | 505 | |
| YTD Return | +16.27% | +13.10% | |
| 1Y Return | +34.67% | +22.80% | |
| 3Y Return (annualized) | +20.45% | +20.98% | |
| 5Y Return (annualized) | - | +13.20% | |
| Volatility (annualized) | 21.5% | 15.3% | |
| Max Drawdown | -40.8% | -56.5% | |
| Fund Family | First Trust Portfolios (US) | State Street Investment Management | |
| Category | Equity | Equity | |
| Inception | Oct 13, 2021 | Jan 22, 1993 |
MMSC vs SPY Performance
First Trust Multi-Manager Small Cap Opportunities ETF (MMSC) 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 MMSC returned +34.67% while SPY returned +22.80%. Year to date, MMSC is up 16.27% versus a gain of 13.10% for SPY.
Over three years, MMSC compounded at +20.45% per year against +20.98% for SPY. Across the full 5-year window we track, SPY has the edge at +8.83% annualized vs +6.98%. Past performance does not guarantee future results.
Risk: Volatility and Drawdowns
MMSC has been the more volatile fund, with annualized monthly volatility of 21.5% compared with 15.3% for SPY. 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 -40.8% for MMSC 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 0.85. They usually move together, but the gap leaves some room for diversification.
Fees and Cost Over Time
MMSC charges 0.95% per year while SPY charges 0.09%. On a $10,000 position that is $95 vs $9 annually, a gap of $86 per year that compounds over a long holding period. On income, MMSC currently yields 0.00% against 1.01% for SPY.
Holdings Overlap
MMSC and SPY share 6 holdings out of 705 unique holdings combined, representing a 0.3% weight overlap.
Moderate overlap means holding both could provide meaningful diversification benefits.
Top Shared Holdings
| Stock | Weight in MMSC | Weight in SPY | Difference |
|---|---|---|---|
| COHR | 0.58% | 0.10% | 0.48% |
| LITE | 0.47% | 0.09% | 0.38% |
| TECH | 0.49% | 0.02% | 0.47% |
| GNRC | Pro | Pro | Pro |
| PODD | Pro | Pro | Pro |
| CIEN | Pro | Pro | Pro |
See all 6 holdings MMSC shares with SPY Exact weights in each fund and the difference, for every overlapping position. Get FundXLS Pro: $29/moFirst 500 subscribers, then $49/mo. Cancel anytime. | |||
Frequently Asked Questions
Which is cheaper, MMSC or SPY?
MMSC has an expense ratio of 0.95% while SPY charges 0.09%. SPY is the cheaper option. On a $10,000 investment, that is $86 per year of difference.
Which performed better, MMSC or SPY?
Over the past year MMSC returned +34.67% vs +22.80% for SPY, so MMSC leads on 1-year performance. Over the longest common window we track (5 years), MMSC annualized +6.98% vs +8.83% for SPY. Past performance does not guarantee future results.
Which is riskier, MMSC or SPY?
MMSC has been the more volatile fund at 21.5% annualized versus 15.3% for SPY. Worst drawdown: MMSC -40.8% vs SPY -56.5%.
Should I hold both MMSC and SPY?
MMSC and SPY have a monthly-return correlation of 0.85, so combining them can provide real diversification depending on your allocation goals.
What is the holdings overlap between MMSC and SPY?
MMSC and SPY share 6 common holdings with a 0.3% weight overlap. Combined, they hold 705 unique securities.
Which pays a higher dividend, MMSC or SPY?
MMSC yields 0.00% while SPY yields 1.01%, so SPY currently pays the higher dividend yield.
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