SPY vs USMV
SPY vs USMV
State Street SPDR S&P 500 ETF Trust vs iShares MSCI USA Minimum Volatility Factor ETF
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 | USMV | Winner |
|---|---|---|---|
| Expense Ratio | 0.09% | 0.15% | |
| AUM | $789.1B | $23.5B | |
| Dividend Yield | 1.01% | 1.50% | |
| Holdings | 505 | 170 | |
| YTD Return | +9.93% | +5.00% | |
| 1Y Return | +19.50% | +7.03% | |
| 3Y Return (annualized) | +19.33% | +10.93% | |
| 5Y Return (annualized) | +12.82% | +6.85% | |
| Volatility (annualized) | 15.3% | 11.2% | |
| Max Drawdown | -56.5% | -33.1% | |
| Fund Family | State Street Investment Management | iShares by BlackRock (US) | |
| Category | Equity | Equity | |
| Inception | Jan 22, 1993 | Oct 18, 2011 |
SPY vs USMV Performance
State Street SPDR S&P 500 ETF Trust (SPY) is a ETF from State Street Investment Management and iShares MSCI USA Minimum Volatility Factor ETF (USMV) is a ETF from iShares by BlackRock (US). Over the past year SPY returned +19.50% while USMV returned +7.03%. Year to date, SPY is up 9.93% versus a gain of 5.00% for USMV.
Over three years, SPY compounded at +19.33% per year against +10.93% for USMV; over five years the annualized figures are +12.82% and +6.85% respectively. Across the full 15-year window we track, USMV has the edge at +10.21% annualized vs +8.74%. 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 11.2% for USMV. 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 -33.1% for USMV. 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 0.86. They usually move together, but the gap leaves some room for diversification.
Fees and Cost Over Time
SPY charges 0.09% per year while USMV charges 0.15%. On a $10,000 position that is $9 vs $15 annually, a gap of $6 per year that compounds over a long holding period. On income, SPY currently yields 1.01% against 1.50% for USMV.
Holdings Overlap
SPY and USMV share 147 holdings out of 523 unique holdings combined, representing a 33.7% weight overlap.
Moderate overlap means holding both could provide meaningful diversification benefits.
Top Shared Holdings
| Stock | Weight in SPY | Weight in USMV | Difference |
|---|---|---|---|
| NVDA | 7.31% | 1.29% | 6.02% |
| AAPL | 7.09% | 0.91% | 6.18% |
| MSFT | 4.43% | 1.35% | 3.08% |
| AMZN | Pro | Pro | Pro |
| AVGO | Pro | Pro | Pro |
| GOOG | Pro | Pro | Pro |
| JNJ | Pro | Pro | Pro |
| MU | Pro | Pro | Pro |
| LLY | Pro | Pro | Pro |
| AMD | Pro | Pro | Pro |
See all 10 holdings SPY shares with USMV 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 USMV?
SPY has an expense ratio of 0.09% while USMV charges 0.15%. SPY is the cheaper option. On a $10,000 investment, that is $6 per year of difference.
Which performed better, SPY or USMV?
Over the past year SPY returned +19.50% vs +7.03% for USMV, so SPY leads on 1-year performance. Over the longest common window we track (15 years), SPY annualized +8.74% vs +10.21% for USMV. Past performance does not guarantee future results.
Which is riskier, SPY or USMV?
SPY has been the more volatile fund at 15.3% annualized versus 11.2% for USMV. Worst drawdown: SPY -56.5% vs USMV -33.1%.
Should I hold both SPY and USMV?
SPY and USMV have a monthly-return correlation of 0.86, so combining them can provide real diversification depending on your allocation goals.
What is the holdings overlap between SPY and USMV?
SPY and USMV share 147 common holdings with a 33.7% weight overlap. Combined, they hold 523 unique securities.
Which pays a higher dividend, SPY or USMV?
SPY yields 1.01% while USMV yields 1.50%, so USMV currently pays the higher dividend yield.
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