RAA vs SPY
RAA vs SPY
SMI 3Fourteen REAL Asset Allocation 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 | RAA | SPY | Winner |
|---|---|---|---|
| Expense Ratio | 0.85% | 0.09% | |
| AUM | $594M | $789.1B | |
| Dividend Yield | 2.13% | 1.01% | |
| Holdings | 182 | 505 | |
| YTD Return | +8.37% | +13.50% | |
| 1Y Return | +16.81% | +23.56% | |
| 3Y Return (annualized) | +14.67% | +21.17% | |
| 5Y Return (annualized) | +14.67% | +13.46% | |
| Volatility (annualized) | 23.4% | 15.3% | |
| Max Drawdown | -53.8% | -56.5% | |
| Fund Family | 3FourteenSMI | State Street Investment Management | |
| Category | Equity | Equity | |
| Inception | Feb 26, 2025 | Jan 22, 1993 |
RAA vs SPY Performance
SMI 3Fourteen REAL Asset Allocation ETF (RAA) is a ETF from 3FourteenSMI and State Street SPDR S&P 500 ETF Trust (SPY) is a ETF from State Street Investment Management. Over the past year RAA returned +16.81% while SPY returned +23.56%. Year to date, RAA is up 8.37% versus a gain of 13.50% for SPY.
Over three years, RAA compounded at +14.67% per year against +21.17% for SPY; over five years the annualized figures are +14.67% and +13.46% respectively. Across the full 31-year window we track, SPY has the edge at +8.85% annualized vs +7.22%. Past performance does not guarantee future results.
Risk: Volatility and Drawdowns
RAA has been the more volatile fund, with annualized monthly volatility of 23.4% 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 -53.8% for RAA 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 0.03. They move independently enough that combining them can meaningfully diversify a portfolio.
Fees and Cost Over Time
RAA charges 0.85% per year while SPY charges 0.09%. On a $10,000 position that is $85 vs $9 annually, a gap of $76 per year that compounds over a long holding period. On income, RAA currently yields 2.13% against 1.01% for SPY.
Holdings Overlap
RAA and SPY share 135 holdings out of 548 unique holdings combined, representing a 21.8% weight overlap.
Moderate overlap means holding both could provide meaningful diversification benefits.
Top Shared Holdings
| Stock | Weight in RAA | Weight in SPY | Difference |
|---|---|---|---|
| NVDA | 1.61% | 7.31% | 5.70% |
| AAPL | 1.39% | 7.09% | 5.70% |
| MSFT | 1.04% | 4.43% | 3.39% |
| AMZN | Pro | Pro | Pro |
| GOOGL | Pro | Pro | Pro |
| AVGO | Pro | Pro | Pro |
| GOOG | Pro | Pro | Pro |
| META | Pro | Pro | Pro |
| TSLA | Pro | Pro | Pro |
| MU | Pro | Pro | Pro |
See all 10 holdings RAA 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, RAA or SPY?
RAA has an expense ratio of 0.85% while SPY charges 0.09%. SPY is the cheaper option. On a $10,000 investment, that is $76 per year of difference.
Which performed better, RAA or SPY?
Over the past year RAA returned +16.81% vs +23.56% for SPY, so SPY leads on 1-year performance. Over the longest common window we track (31 years), RAA annualized +7.22% vs +8.85% for SPY. Past performance does not guarantee future results.
Which is riskier, RAA or SPY?
RAA has been the more volatile fund at 23.4% annualized versus 15.3% for SPY. Worst drawdown: RAA -53.8% vs SPY -56.5%.
Should I hold both RAA and SPY?
RAA and SPY have a monthly-return correlation of 0.03, so combining them can provide real diversification depending on your allocation goals.
What is the holdings overlap between RAA and SPY?
RAA and SPY share 135 common holdings with a 21.8% weight overlap. Combined, they hold 548 unique securities.
Which pays a higher dividend, RAA or SPY?
RAA yields 2.13% while SPY yields 1.01%, so RAA currently pays the higher dividend yield.
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