RND vs SPY

Quick Verdict

SPY has a lower expense ratio. SPY delivered stronger 1-year returns. SPY offers more diversification with 503 holdings.

Lower Fees: SPYHigher Returns: SPYMore Diversified: SPY

Side-by-Side Comparison

MetricRNDSPYWinner
Expense Ratio0.60%0.09%
AUM$9M$789.1B
Dividend Yield0.00%1.01%
Holdings51505
YTD Return+10.61%+13.79%
1Y Return+21.60%+23.66%
3Y Return (annualized)-+21.40%
5Y Return (annualized)-+13.37%
Volatility (annualized)16.3%15.3%
Max Drawdown-23.5%-56.5%
Fund FamilyFirst Trust Portfolios (US)State Street Investment Management
CategoryEquityEquity
InceptionApr 30, 2024Jan 22, 1993

RND vs SPY Performance

First Trust Bloomberg R&D Leaders ETF (RND) 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 RND returned +21.60% while SPY returned +23.66%. Year to date, RND is up 10.61% versus a gain of 13.79% for SPY.

Risk: Volatility and Drawdowns

RND has been the more volatile fund, with annualized monthly volatility of 16.3% 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 -23.5% for RND 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 0.92. They move almost in lockstep, so holding both mostly duplicates the same exposure.

Fees and Cost Over Time

RND charges 0.60% per year while SPY charges 0.09%. On a $10,000 position that is $60 vs $9 annually, a gap of $51 per year that compounds over a long holding period. On income, RND currently yields 0.00% against 1.01% for SPY.

Holdings Overlap

45.2%overlap

RND and SPY share 48 holdings out of 505 unique holdings combined, representing a 45.2% weight overlap.

Moderate overlap means holding both could provide meaningful diversification benefits.

Top Shared Holdings

StockWeight in RNDWeight in SPYDifference
AAPL8.45%7.09%1.36%
NVDA8.01%7.31%0.70%
GOOGL8.61%3.32%5.29%
AMZNProProPro
MSFTProProPro
AVGOProProPro
LLYProProPro
METAProProPro
TSLAProProPro
AMDProProPro
See all 10 holdings RND shares with SPY
Exact weights in each fund and the difference, for every overlapping position.
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Frequently Asked Questions

Which is cheaper, RND or SPY?

RND has an expense ratio of 0.60% while SPY charges 0.09%. SPY is the cheaper option. On a $10,000 investment, that is $51 per year of difference.

Which performed better, RND or SPY?

Over the past year RND returned +21.60% vs +23.66% for SPY, so SPY leads on 1-year performance. Over the longest common window we track (2 years), RND annualized +26.78% vs +8.85% for SPY. Past performance does not guarantee future results.

Which is riskier, RND or SPY?

RND has been the more volatile fund at 16.3% annualized versus 15.3% for SPY. Worst drawdown: RND -23.5% vs SPY -56.5%.

Should I hold both RND and SPY?

RND and SPY have a monthly-return correlation of 0.92, so they move almost identically. Holding both adds little diversification - most investors pick one, usually on fees or the specific index tracked.

What is the holdings overlap between RND and SPY?

RND and SPY share 48 common holdings with a 45.2% weight overlap. Combined, they hold 505 unique securities.

Which pays a higher dividend, RND or SPY?

RND yields 0.00% while SPY yields 1.01%, so SPY currently pays the higher dividend yield.

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