SECT vs SPY
SECT vs SPY
Main Sector Rotation ETF vs State Street SPDR S&P 500 ETF Trust
Quick Verdict
SPY has a lower expense ratio. SECT delivered stronger 1-year returns. SPY offers more diversification with 503 holdings.
Side-by-Side Comparison
| Metric | SECT | SPY | Winner |
|---|---|---|---|
| Expense Ratio | 0.69% | 0.09% | |
| AUM | $2.8B | $789.1B | |
| Dividend Yield | 0.72% | 1.01% | |
| Holdings | 14 | 505 | |
| YTD Return | +11.96% | +13.10% | |
| 1Y Return | +22.81% | +22.80% | |
| 3Y Return (annualized) | +18.47% | +20.98% | |
| 5Y Return (annualized) | +12.16% | +13.20% | |
| Volatility (annualized) | 20.2% | 15.3% | |
| Max Drawdown | -50.1% | -56.5% | |
| Fund Family | Main Management ETF Advisors, LLC | State Street Investment Management | |
| Category | Equity | Equity | |
| Inception | Sep 5, 2017 | Jan 22, 1993 |
SECT vs SPY Performance
Main Sector Rotation ETF (SECT) is a ETF from Main Management ETF Advisors, LLC and State Street SPDR S&P 500 ETF Trust (SPY) is a ETF from State Street Investment Management. Over the past year SECT returned +22.81% while SPY returned +22.80%. Year to date, SECT is up 11.96% versus a gain of 13.10% for SPY.
Over three years, SECT compounded at +18.47% per year against +20.98% for SPY; over five years the annualized figures are +12.16% and +13.20% respectively. Across the full 10-year window we track, SPY has the edge at +8.83% annualized vs +7.12%. Past performance does not guarantee future results.
Risk: Volatility and Drawdowns
SECT has been the more volatile fund, with annualized monthly volatility of 20.2% 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 -50.1% for SECT 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 0.76. They usually move together, but the gap leaves some room for diversification.
Fees and Cost Over Time
SECT charges 0.69% per year while SPY charges 0.09%. On a $10,000 position that is $69 vs $9 annually, a gap of $60 per year that compounds over a long holding period. On income, SECT currently yields 0.72% against 1.01% for SPY.
Holdings Overlap
SECT and SPY share 0 holdings out of 513 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, SECT or SPY?
SECT has an expense ratio of 0.69% while SPY charges 0.09%. SPY is the cheaper option. On a $10,000 investment, that is $60 per year of difference.
Which performed better, SECT or SPY?
Over the past year SECT returned +22.81% vs +22.80% for SPY, so SECT leads on 1-year performance. Over the longest common window we track (10 years), SECT annualized +7.12% vs +8.83% for SPY. Past performance does not guarantee future results.
Which is riskier, SECT or SPY?
SECT has been the more volatile fund at 20.2% annualized versus 15.3% for SPY. Worst drawdown: SECT -50.1% vs SPY -56.5%.
Should I hold both SECT and SPY?
SECT and SPY have a monthly-return correlation of 0.76, so combining them can provide real diversification depending on your allocation goals.
What is the holdings overlap between SECT and SPY?
SECT and SPY share 0 common holdings with a 0.0% weight overlap. Combined, they hold 513 unique securities.
Which pays a higher dividend, SECT or SPY?
SECT yields 0.72% while SPY yields 1.01%, so SPY currently pays the higher dividend yield.
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