SPY vs WEA
SPY vs WEA
State Street SPDR S&P 500 ETF Trust vs Western Asset Premier Bond Fund
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 | WEA | Winner |
|---|---|---|---|
| Expense Ratio | 0.09% | 1.22% | |
| AUM | $789.1B | $132M | |
| Dividend Yield | 1.01% | 7.44% | |
| Holdings | 505 | 386 | |
| YTD Return | +9.93% | -1.89% | |
| 1Y Return | +19.50% | +4.16% | |
| 3Y Return (annualized) | +19.33% | +6.23% | |
| 5Y Return (annualized) | +12.82% | +0.55% | |
| Volatility (annualized) | 15.3% | 15.8% | |
| Max Drawdown | -56.5% | -64.9% | |
| Fund Family | State Street Investment Management | Franklin Templeton Investments (US) | |
| Category | Equity | Fixed Income | |
| Inception | Jan 22, 1993 | Mar 28, 2002 |
SPY vs WEA Performance
State Street SPDR S&P 500 ETF Trust (SPY) is a ETF from State Street Investment Management and Western Asset Premier Bond Fund (WEA) is a ETF from Franklin Templeton Investments (US). Over the past year SPY returned +19.50% while WEA returned +4.16%. Year to date, SPY is up 9.93% versus a loss of 1.89% for WEA.
Over three years, SPY compounded at +19.33% per year against +6.23% for WEA; over five years the annualized figures are +12.82% and +0.55% respectively. Across the full 24-year window we track, SPY has the edge at +8.74% annualized vs +0.15%. Past performance does not guarantee future results.
Risk: Volatility and Drawdowns
WEA has been the more volatile fund, with annualized monthly volatility of 15.8% 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 -64.9% for WEA. 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 0.46. They move independently enough that combining them can meaningfully diversify a portfolio.
Fees and Cost Over Time
SPY charges 0.09% per year while WEA charges 1.22%. On a $10,000 position that is $9 vs $122 annually, a gap of $113 per year that compounds over a long holding period. On income, SPY currently yields 1.01% against 7.44% for WEA.
Holdings Overlap
SPY and WEA share 0 holdings out of 749 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 WEA?
SPY has an expense ratio of 0.09% while WEA charges 1.22%. SPY is the cheaper option. On a $10,000 investment, that is $113 per year of difference.
Which performed better, SPY or WEA?
Over the past year SPY returned +19.50% vs +4.16% for WEA, so SPY leads on 1-year performance. Over the longest common window we track (24 years), SPY annualized +8.74% vs +0.15% for WEA. Past performance does not guarantee future results.
Which is riskier, SPY or WEA?
WEA has been the more volatile fund at 15.8% annualized versus 15.3% for SPY. Worst drawdown: SPY -56.5% vs WEA -64.9%.
Should I hold both SPY and WEA?
SPY and WEA have a monthly-return correlation of 0.46, so combining them can provide real diversification depending on your allocation goals.
What is the holdings overlap between SPY and WEA?
SPY and WEA share 0 common holdings with a 0.0% weight overlap. Combined, they hold 749 unique securities.
Which pays a higher dividend, SPY or WEA?
SPY yields 1.01% while WEA yields 7.44%, so WEA currently pays the higher dividend yield.
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