SPY vs TFNS

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

MetricSPYTFNSWinner
Expense Ratio0.09%0.44%
AUM$789.1B-
Dividend Yield1.01%-
Holdings505347
YTD Return+11.49%+7.12%
1Y Return+21.37%+16.25%
3Y Return (annualized)+20.76%-
5Y Return (annualized)+12.94%-
Volatility (annualized)15.3%11.9%
Max Drawdown-56.5%-14.0%
Fund FamilyState Street Investment ManagementT.Rowe Price
CategoryEquityEquity
InceptionJan 22, 1993Jun 11, 2025

SPY vs TFNS Performance

State Street SPDR S&P 500 ETF Trust (SPY) is a ETF from State Street Investment Management and T. Rowe Price Financials ETF (TFNS) is a ETF from T.Rowe Price. Over the past year SPY returned +21.37% while TFNS returned +16.25%. Year to date, SPY is up 11.49% versus a gain of 7.12% for TFNS.

Risk: Volatility and Drawdowns

SPY has been the more volatile fund, with annualized monthly volatility of 15.3% compared with 11.9% for TFNS. 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 -56.5% for SPY and -14.0% for TFNS. 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 0.32. They move independently enough that combining them can meaningfully diversify a portfolio.

Fees and Cost Over Time

SPY charges 0.09% per year while TFNS charges 0.44%. On a $10,000 position that is $9 vs $44 annually, a gap of $35 per year that compounds over a long holding period.

Holdings Overlap

0.0%overlap

SPY and TFNS share 1 holdings out of 664 unique holdings combined, representing a 0.0% weight overlap.

Moderate overlap means holding both could provide meaningful diversification benefits.

Top Shared Holdings

StockWeight in SPYWeight in TFNSDifference
VST0.08%0.04%0.04%

Frequently Asked Questions

Which is cheaper, SPY or TFNS?

SPY has an expense ratio of 0.09% while TFNS charges 0.44%. SPY is the cheaper option. On a $10,000 investment, that is $35 per year of difference.

Which performed better, SPY or TFNS?

Over the past year SPY returned +21.37% vs +16.25% for TFNS, so SPY leads on 1-year performance. Over the longest common window we track (1 years), SPY annualized +8.78% vs +16.15% for TFNS. Past performance does not guarantee future results.

Which is riskier, SPY or TFNS?

SPY has been the more volatile fund at 15.3% annualized versus 11.9% for TFNS. Worst drawdown: SPY -56.5% vs TFNS -14.0%.

Should I hold both SPY and TFNS?

SPY and TFNS have a monthly-return correlation of 0.32, so combining them can provide real diversification depending on your allocation goals.

What is the holdings overlap between SPY and TFNS?

SPY and TFNS share 1 common holdings with a 0.0% weight overlap. Combined, they hold 664 unique securities.

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