SPSM vs SPY
SPSM vs SPY
State Street SPDR Portfolio S&P 600 Small Cap ETF vs State Street SPDR S&P 500 ETF Trust
Quick Verdict
SPSM has a lower expense ratio. SPSM delivered stronger 1-year returns. SPSM offers more diversification with 607 holdings.
Side-by-Side Comparison
| Metric | SPSM | SPY | Winner |
|---|---|---|---|
| Expense Ratio | 0.03% | 0.09% | |
| AUM | $17.0B | $789.1B | |
| Dividend Yield | 1.36% | 1.01% | |
| Holdings | 611 | 505 | |
| YTD Return | +24.50% | +13.50% | |
| 1Y Return | +38.20% | +23.56% | |
| 3Y Return (annualized) | +14.78% | +21.17% | |
| 5Y Return (annualized) | +8.37% | +13.46% | |
| Volatility (annualized) | 19.5% | 15.3% | |
| Max Drawdown | -44.4% | -56.5% | |
| Fund Family | State Street Investment Management | State Street Investment Management | |
| Category | Equity | Equity | |
| Inception | Jul 8, 2013 | Jan 22, 1993 |
SPSM vs SPY Performance
State Street SPDR Portfolio S&P 600 Small Cap ETF (SPSM) is a ETF from State Street Investment Management and State Street SPDR S&P 500 ETF Trust (SPY) is a ETF from State Street Investment Management. Over the past year SPSM returned +38.20% while SPY returned +23.56%. Year to date, SPSM is up 24.50% versus a gain of 13.50% for SPY.
Over three years, SPSM compounded at +14.78% per year against +21.17% for SPY; over five years the annualized figures are +8.37% and +13.46% respectively. Across the full 13-year window we track, SPSM has the edge at +9.24% annualized vs +8.85%. Past performance does not guarantee future results.
Risk: Volatility and Drawdowns
SPSM has been the more volatile fund, with annualized monthly volatility of 19.5% 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 -44.4% for SPSM 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 0.83. They usually move together, but the gap leaves some room for diversification.
Fees and Cost Over Time
SPSM charges 0.03% per year while SPY charges 0.09%. On a $10,000 position that is $3 vs $9 annually, a gap of $6 per year that compounds over a long holding period. On income, SPSM currently yields 1.36% against 1.01% for SPY.
Holdings Overlap
SPSM and SPY share 1 holdings out of 1109 unique holdings combined, representing a 0.0% weight overlap.
Moderate overlap means holding both could provide meaningful diversification benefits.
Top Shared Holdings
| Stock | Weight in SPSM | Weight in SPY | Difference |
|---|---|---|---|
| VICI | 0.03% | 0.04% | 0.01% |
Frequently Asked Questions
Which is cheaper, SPSM or SPY?
SPSM has an expense ratio of 0.03% while SPY charges 0.09%. SPSM is the cheaper option. On a $10,000 investment, that is $6 per year of difference.
Which performed better, SPSM or SPY?
Over the past year SPSM returned +38.20% vs +23.56% for SPY, so SPSM leads on 1-year performance. Over the longest common window we track (13 years), SPSM annualized +9.24% vs +8.85% for SPY. Past performance does not guarantee future results.
Which is riskier, SPSM or SPY?
SPSM has been the more volatile fund at 19.5% annualized versus 15.3% for SPY. Worst drawdown: SPSM -44.4% vs SPY -56.5%.
Should I hold both SPSM and SPY?
SPSM and SPY have a monthly-return correlation of 0.83, so combining them can provide real diversification depending on your allocation goals.
What is the holdings overlap between SPSM and SPY?
SPSM and SPY share 1 common holdings with a 0.0% weight overlap. Combined, they hold 1109 unique securities.
Which pays a higher dividend, SPSM or SPY?
SPSM yields 1.36% while SPY yields 1.01%, so SPSM currently pays the higher dividend yield.
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