SPY vs TMFE

Quick Verdict

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

Lower Fees: SPYHigher Returns: TMFEMore Diversified: SPY

Side-by-Side Comparison

MetricSPYTMFEWinner
Expense Ratio0.09%0.50%
AUM$789.1B$77M
Dividend Yield1.01%0.18%
Holdings505102
YTD Return+13.28%+34.98%
1Y Return+23.94%+39.12%
3Y Return (annualized)+21.07%+12.14%
5Y Return (annualized)+13.27%-
Volatility (annualized)15.3%20.5%
Max Drawdown-56.5%-31.1%
Fund FamilyState Street Investment ManagementMotley Fool Asset Management
CategoryEquityEquity
InceptionJan 22, 1993Dec 30, 2021

SPY vs TMFE Performance

State Street SPDR S&P 500 ETF Trust (SPY) is a ETF from State Street Investment Management and Motley Fool Capital Efficiency 100 Index ETF (TMFE) is a ETF from Motley Fool Asset Management. Over the past year SPY returned +23.94% while TMFE returned +39.12%. Year to date, SPY is up 13.28% versus a gain of 34.98% for TMFE.

Over three years, SPY compounded at +21.07% per year against +12.14% for TMFE. Across the full 3-year window we track, TMFE has the edge at +12.14% annualized vs +8.84%. Past performance does not guarantee future results.

Risk: Volatility and Drawdowns

TMFE has been the more volatile fund, with annualized monthly volatility of 20.5% 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 -56.5% for SPY and -31.1% for TMFE. 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 0.97. They move almost in lockstep, so holding both mostly duplicates the same exposure.

Fees and Cost Over Time

SPY charges 0.09% per year while TMFE charges 0.50%. On a $10,000 position that is $9 vs $50 annually, a gap of $41 per year that compounds over a long holding period. On income, SPY currently yields 1.01% against 0.18% for TMFE.

Holdings Overlap

32.1%overlap

SPY and TMFE share 60 holdings out of 544 unique holdings combined, representing a 32.1% weight overlap.

Moderate overlap means holding both could provide meaningful diversification benefits.

Top Shared Holdings

StockWeight in SPYWeight in TMFEDifference
NVDA7.31%5.34%1.97%
AAPL7.09%5.44%1.65%
MSFT4.43%5.26%0.83%
AMZNProProPro
GOOGProProPro
METAProProPro
LRCXProProPro
VProProPro
MAProProPro
COSTProProPro
See all 10 holdings SPY shares with TMFE
Exact weights in each fund and the difference, for every overlapping position.
Get FundXLS Pro: $29/moFirst 500 subscribers, then $49/mo. Cancel anytime.

Frequently Asked Questions

Which is cheaper, SPY or TMFE?

SPY has an expense ratio of 0.09% while TMFE charges 0.50%. SPY is the cheaper option. On a $10,000 investment, that is $41 per year of difference.

Which performed better, SPY or TMFE?

Over the past year SPY returned +23.94% vs +39.12% for TMFE, so TMFE leads on 1-year performance. Over the longest common window we track (3 years), SPY annualized +8.84% vs +12.14% for TMFE. Past performance does not guarantee future results.

Which is riskier, SPY or TMFE?

TMFE has been the more volatile fund at 20.5% annualized versus 15.3% for SPY. Worst drawdown: SPY -56.5% vs TMFE -31.1%.

Should I hold both SPY and TMFE?

SPY and TMFE have a monthly-return correlation of 0.97, 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 SPY and TMFE?

SPY and TMFE share 60 common holdings with a 32.1% weight overlap. Combined, they hold 544 unique securities.

Which pays a higher dividend, SPY or TMFE?

SPY yields 1.01% while TMFE yields 0.18%, so SPY currently pays the higher dividend yield.

Get Full ETF Analytics

Access complete holdings data, overlap analysis, screener tools, and more with FundXLS.

See inside every ETF you own
$29/moCancel anytime.
Try FundXLS →