RAVI vs SPY
RAVI vs SPY
FlexShares Ultra Short Income Fund 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 | RAVI | SPY | Winner |
|---|---|---|---|
| Expense Ratio | 0.25% | 0.09% | |
| AUM | $1.5B | $789.1B | |
| Dividend Yield | 4.37% | 1.01% | |
| Holdings | 254 | 505 | |
| YTD Return | +1.78% | +13.50% | |
| 1Y Return | +3.75% | +23.56% | |
| 3Y Return (annualized) | +4.95% | +21.17% | |
| 5Y Return (annualized) | +3.54% | +13.46% | |
| Volatility (annualized) | 1.2% | 15.3% | |
| Max Drawdown | -3.8% | -56.5% | |
| Fund Family | Flexshares Trust | State Street Investment Management | |
| Category | Fixed Income | Equity | |
| Inception | Oct 9, 2012 | Jan 22, 1993 |
RAVI vs SPY Performance
FlexShares Ultra Short Income Fund (RAVI) is a ETF from Flexshares Trust and State Street SPDR S&P 500 ETF Trust (SPY) is a ETF from State Street Investment Management. Over the past year RAVI returned +3.75% while SPY returned +23.56%. Year to date, RAVI is up 1.78% versus a gain of 13.50% for SPY.
Over three years, RAVI compounded at +4.95% per year against +21.17% for SPY; over five years the annualized figures are +3.54% and +13.46% respectively. Across the full 14-year window we track, SPY has the edge at +8.85% annualized vs +1.40%. 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 1.2% for RAVI. 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 -3.8% for RAVI 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 0.42. They move independently enough that combining them can meaningfully diversify a portfolio.
Fees and Cost Over Time
RAVI charges 0.25% per year while SPY charges 0.09%. On a $10,000 position that is $25 vs $9 annually, a gap of $16 per year that compounds over a long holding period. On income, RAVI currently yields 4.37% against 1.01% for SPY.
Holdings Overlap
RAVI and SPY share 0 holdings out of 698 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, RAVI or SPY?
RAVI has an expense ratio of 0.25% while SPY charges 0.09%. SPY is the cheaper option. On a $10,000 investment, that is $16 per year of difference.
Which performed better, RAVI or SPY?
Over the past year RAVI returned +3.75% vs +23.56% for SPY, so SPY leads on 1-year performance. Over the longest common window we track (14 years), RAVI annualized +1.40% vs +8.85% for SPY. Past performance does not guarantee future results.
Which is riskier, RAVI or SPY?
SPY has been the more volatile fund at 15.3% annualized versus 1.2% for RAVI. Worst drawdown: RAVI -3.8% vs SPY -56.5%.
Should I hold both RAVI and SPY?
RAVI and SPY have a monthly-return correlation of 0.42, so combining them can provide real diversification depending on your allocation goals.
What is the holdings overlap between RAVI and SPY?
RAVI and SPY share 0 common holdings with a 0.0% weight overlap. Combined, they hold 698 unique securities.
Which pays a higher dividend, RAVI or SPY?
RAVI yields 4.37% while SPY yields 1.01%, so RAVI currently pays the higher dividend yield.
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