SPY vs TSI
SPY vs TSI
State Street SPDR S&P 500 ETF Trust vs TCW Strategic Income Fund Inc.
Quick Verdict
SPY has a lower expense ratio. SPY delivered stronger 1-year returns. SPY offers more diversification with 503 holdings.
Side-by-Side Comparison
| Metric | SPY | TSI | Winner |
|---|---|---|---|
| Expense Ratio | 0.09% | 1.03% | |
| AUM | $789.1B | - | |
| Dividend Yield | 1.01% | 6.21% | |
| Holdings | 505 | 746 | |
| YTD Return | +11.49% | -7.05% | |
| 1Y Return | +21.37% | -3.71% | |
| 3Y Return (annualized) | +20.76% | +5.96% | |
| 5Y Return (annualized) | +12.94% | +1.72% | |
| Volatility (annualized) | 15.3% | 18.3% | |
| Max Drawdown | -56.5% | -83.3% | |
| Fund Family | State Street Investment Management | TCW Funds | |
| Category | Equity | Fixed Income | |
| Inception | Jan 22, 1993 | Mar 5, 1987 |
SPY vs TSI Performance
State Street SPDR S&P 500 ETF Trust (SPY) is a ETF from State Street Investment Management and TCW Strategic Income Fund Inc. (TSI) is a ETF from TCW Funds. Over the past year SPY returned +21.37% while TSI returned -3.71%. Year to date, SPY is up 11.49% versus a loss of 7.05% for TSI.
Over three years, SPY compounded at +20.76% per year against +5.96% for TSI; over five years the annualized figures are +12.94% and +1.72% respectively. Across the full 31-year window we track, SPY has the edge at +8.78% annualized vs +0.20%. Past performance does not guarantee future results.
Risk: Volatility and Drawdowns
TSI has been the more volatile fund, with annualized monthly volatility of 18.3% 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 -83.3% for TSI. 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 0.37. They move independently enough that combining them can meaningfully diversify a portfolio.
Fees and Cost Over Time
SPY charges 0.09% per year while TSI charges 1.03%. On a $10,000 position that is $9 vs $103 annually, a gap of $94 per year that compounds over a long holding period. On income, SPY currently yields 1.01% against 6.21% for TSI.
Holdings Overlap
SPY and TSI share 3 holdings out of 747 unique holdings combined, representing a 0.4% weight overlap.
Moderate overlap means holding both could provide meaningful diversification benefits.
Frequently Asked Questions
Which is cheaper, SPY or TSI?
SPY has an expense ratio of 0.09% while TSI charges 1.03%. SPY is the cheaper option. On a $10,000 investment, that is $94 per year of difference.
Which performed better, SPY or TSI?
Over the past year SPY returned +21.37% vs -3.71% for TSI, so SPY leads on 1-year performance. Over the longest common window we track (31 years), SPY annualized +8.78% vs +0.20% for TSI. Past performance does not guarantee future results.
Which is riskier, SPY or TSI?
TSI has been the more volatile fund at 18.3% annualized versus 15.3% for SPY. Worst drawdown: SPY -56.5% vs TSI -83.3%.
Should I hold both SPY and TSI?
SPY and TSI have a monthly-return correlation of 0.37, so combining them can provide real diversification depending on your allocation goals.
What is the holdings overlap between SPY and TSI?
SPY and TSI share 3 common holdings with a 0.4% weight overlap. Combined, they hold 747 unique securities.
Which pays a higher dividend, SPY or TSI?
SPY yields 1.01% while TSI yields 6.21%, so TSI currently pays the higher dividend yield.
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