This is another great post by Marjolein at Radical Fire, this time she compares SPLG Vs. SPY and looks at which of the two ETFs is a better investment. Tim
Are you looking to invest in the stock market, earn dividends, and watch your money grow over time? Before investing, let’s look into two value stocks, SPLG vs. SPY, that you may want to invest in to hedge your managed funds.
SPLG vs. SPY are two large Exchange-Traded Funds (ETFs) created by the SPDR State Street Global Advisors. This firm is the fourth largest asset manager globally, with about $4 trillion worth of assets under its management. The firm is also one of the most trusted globally, and SPLG and SPY are two of their most successful funds.
In this review, we will provide you with the data about SPLG and SPY to make up your mind about which one to invest in.
SPLG: SPDR Portfolio S&P 500 ETF
SPLG or SPDR Portfolio S&P 500 ETF is an ETF created by SPDR State Street Global Advisors in November 2005. This fund seeks to track the performance in the S&P 500 Index.
SPLG is a low-cost portfolio designed to provide holders with a diversified portfolio that is evenly spread across different industries. Their diversified nature makes them less susceptible to general market volatility.
This low-cost fund contains assets covering about 80% of all the stocks in the S&P 500 Index. It means that if you were to buy and hold this fund, you would simply be having a portfolio of the most profitable companies in the world.
These large firms have the biggest market capitalization on the market and have robust financial profiles and historical data to predict their long-term growth. Investing in SPLG holds a lot of promise based on the performance data over the last few years.
SPLG top 10 holdings represent 29.93% of total assets:
| Asset | Percentage |
| Apple Inc. | 6.76% |
| Microsoft Corp. | 6.33% |
| Amazon.com Inc. | 3.86% |
| Alphabet Inc. Class A | 2.23% |
| Tesla Inc. | 2.14% |
| Alphabet Inc. Class C | 2.10% |
| NVIDIA Corp. | 2.03% |
| Meta Platforms Inc. Class A | 1.93% |
| Berkshire Hathaway Inc. Class B | 1.33% |
| JPMorgan Chase & Co. | 1.22% |
SPY: SPDR S&P 500 ETF Trust
SPY or SPDR S&P 500 ETF Trust is another SPDR asset by State Street Global Advisors. This asset is an ETF that contains securities of some of the leading companies that make up the Fortune 500 S&P Index.
SPLG is a low-cost portfolio designed to provide holders with a diversified portfolio that is evenly spread across different industries. Their diversified nature makes them less susceptible to general market volatility.
This low-cost fund contains assets covering about 80% of all the stocks in the S&P 500 Index. It means that if you were to buy and hold this fund, you would simply be having a portfolio of the most profitable companies in the world.
These large firms have the biggest market capitalization on the market and have robust financial profiles and historical data to predict their long-term growth. Investing in SPLG holds a lot of promise based on the performance data over the last few years.
SPLG top 10 holdings represent 29.93% of total assets:
| Asset | Percentage |
| Apple Inc. | 6.76% |
| Microsoft Corp. | 6.33% |
| Amazon.com Inc. | 3.86% |
| Alphabet Inc. Class A | 2.23% |
| Tesla Inc. | 2.14% |
| Alphabet Inc. Class C | 2.10% |
| NVIDIA Corp. | 2.03% |
| Meta Platforms Inc. Class A | 1.93% |
| Berkshire Hathaway Inc. Class B | 1.33% |
| JPMorgan Chase & Co. | 1.22% |
SPLG Vs. SPY: Key Differences
So what are the key differences between SPLG vs. SPY? First, you must understand their similarities to understand their differences better.
SPLG and SPY both track the S&P 500. But this is where both assets part ways.
SPY has been around for a more extended period and had assets worth $374.03 billion under its management, while SPLG has assets worth $10.72 billion.
Another significant difference is their expense ratios. SPLG has a lower expense ratio of 0.03% compared to SPY’s 0.09%.
When you take a closer look, the biggest difference between both is their level of liquidity. Having been in circulation for a much longer time, SPY is far more liquid than SPLG. This means that you can quickly buy and sell SPY since it has a vast circulation, and many people are constantly looking to buy or sell it. In the case of SPLG, it takes a little more time due to its limited circulation.
As for the year of return for both assets, SPLG has a rate of 20.01%, which is slightly above SPYs 19.94%. Since they both track stocks in the S&P 500, it is not surprising to see them posting similar losses and gains in the market.
Investing in one or the other should be a matter of preference because they track the same assets and react similarly to market forces.
SPLG Vs. SPY: Composition Differences
What are their compositional differences? Our table throws more light by providing you with hard data.
| Category | SPLG | SPY |
| Type | ETF | ETF |
| Segment | US Large Cap | US Large Cap |
| Issuer | SPDR State Street Global Advisors | SPDR State Street Global Advisors |
| Net Assets | $10.72 billion | $374.03 billion |
| Expense Ratio | 0.03% | 0.09% |
| Style | Passive Management Style | Passive Management Style |
| Dividend Yield | 1.32% | 1.32% |
| Minimum investment | N/A | N/A |
| YTD Returns | 23.98% | 23.92% |
SPLG Vs. SPY: Performance Differences
Now, let’s take a look at their performance differences.
SPLG Performance & Returns
| Period | Returns |
| YTD Returns | 15.31% |
| 1-Month Return | 2.29% |
| 3-Month Return | 8.35% |
| 1-Year Return | 40.97% |
| 3-Year Return | 18.69% |
| 5-Year Return | 17.73% |
| 10-Year Return | 14.70% |
SPY Performance & Returns
| Period | Returns |
| YTD Returns | 15.25% |
| 1-Month Return | 2.25% |
| 3-Month Return | 8.36% |
| 1-Year Return | 40.90% |
| 3-Year Return | 18.51% |
| 5-Year Return | 17.51% |
| 10-Year Return | 14.71% |
SPLG Vs. SPY: Fees
The fees charged for both differ, and SPLG has a lower expense ratio of 0.03%, while SPY has an expense ratio of 0.09%. If costs matter a great deal to you, as they should, then SPLG is your best bet.
However, if you want a highly liquid asset, then SPY comes out on top.
SPLG Vs. SPY: Frequently Asked Questions
Here are some frequently asked questions that can guide you between SPLG and SPY.
Is SPLG A Good Investment?
Yes, SPLG is a good investment. This ETF tracks assets in the S&P 500, which are highly profitable. For this reason and many more, investors find it quite attractive, primarily because the securities are spread across different industries.
Besides that, SPLG has a very low expense ratio of 0.03%, which is affordable.
What Is The Difference Between SPY And SPLG?
The difference between both funds is in their structure. SPY is a highly liquid ETF, while SPLG is an ETF with less liquid.
What Stocks Are In SPY?
SPY has a host of diversified stocks, with its top ten holdings representing 29.94% of its total assets. These holdings are solely S&P stocks, and SPY’s top industry stocks include IT, healthcare, financial services, energy, utilities, materials, real estate, communication, and more.
What Stocks Are In SPLG?
SPLG tracks stocks in the S&P 500 with 505 different holdings. The stocks are diversified scores in various industries such as energy, health, utilities, IT, and more.
SPLG Vs. SPY – Which Is A Better Buy?
Past performance is usually a good indicator of what mutual fund, index fund, or ETFs you want to earn income passively. But ask any financial adviser, and you will get the same piece of advice. A sound investment strategy for asset management should also include a risk-adjusted asset allocation based on your personal.
As you already know the pros and cons between SPLG and SPY, you should now check your financials to assess better which asset classes are aligned to your current financial state and overall financial plans and goals. Once you know, you will maximize your invested funds regardless of how the market fluctuates now and in the future. So good luck and enjoy your investment journey!
Tim Thomas has no positions in the stocks, ETFs, mutual funds, forex or commodities mentioned.
This post originally appeared on Radical Fire and was syndicated by Tim Thomas / Timothy Thomas Limited.
Featured image credit: Pixabay.