SPY vs TSEC

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

MetricSPYTSECWinner
Expense Ratio0.09%0.40%
AUM$789.1B$162M
Dividend Yield1.01%5.02%
Holdings505122
YTD Return+9.93%+1.43%
1Y Return+19.50%+5.34%
3Y Return (annualized)+19.33%+6.83%
5Y Return (annualized)+12.82%-
Volatility (annualized)15.3%2.5%
Max Drawdown-56.5%-1.8%
Fund FamilyState Street Investment ManagementTouchstone Investments
CategoryEquityFixed Income
InceptionJan 22, 1993Jul 17, 2023

SPY vs TSEC Performance

State Street SPDR S&P 500 ETF Trust (SPY) is a ETF from State Street Investment Management and Touchstone Securitized Income ETF (TSEC) is a ETF from Touchstone Investments. Over the past year SPY returned +19.50% while TSEC returned +5.34%. Year to date, SPY is up 9.93% versus a gain of 1.43% for TSEC.

Over three years, SPY compounded at +19.33% per year against +6.83% for TSEC. Across the full 3-year window we track, SPY has the edge at +8.74% annualized vs +6.86%. Past performance does not guarantee future results.

Risk: Volatility and Drawdowns

SPY has been the more volatile fund, with annualized monthly volatility of 15.3% compared with 2.5% for TSEC. 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 -1.8% for TSEC. 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 0.42. They move independently enough that combining them can meaningfully diversify a portfolio.

Fees and Cost Over Time

SPY charges 0.09% per year while TSEC charges 0.40%. On a $10,000 position that is $9 vs $40 annually, a gap of $31 per year that compounds over a long holding period. On income, SPY currently yields 1.01% against 5.02% for TSEC.

Holdings Overlap

0.0%overlap

SPY and TSEC share 0 holdings out of 523 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, SPY or TSEC?

SPY has an expense ratio of 0.09% while TSEC charges 0.40%. SPY is the cheaper option. On a $10,000 investment, that is $31 per year of difference.

Which performed better, SPY or TSEC?

Over the past year SPY returned +19.50% vs +5.34% for TSEC, so SPY leads on 1-year performance. Over the longest common window we track (3 years), SPY annualized +8.74% vs +6.86% for TSEC. Past performance does not guarantee future results.

Which is riskier, SPY or TSEC?

SPY has been the more volatile fund at 15.3% annualized versus 2.5% for TSEC. Worst drawdown: SPY -56.5% vs TSEC -1.8%.

Should I hold both SPY and TSEC?

SPY and TSEC have a monthly-return correlation of 0.42, so combining them can provide real diversification depending on your allocation goals.

What is the holdings overlap between SPY and TSEC?

SPY and TSEC share 0 common holdings with a 0.0% weight overlap. Combined, they hold 523 unique securities.

Which pays a higher dividend, SPY or TSEC?

SPY yields 1.01% while TSEC yields 5.02%, so TSEC currently pays the higher dividend yield.

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