AAEQ vs. SPY

Last updated Jun 5, 2026

AAEQ (Alpha Architect US Equity 2 ETF) and SPY (State Street SPDR S&P 500 ETF) are both exchange-traded funds - AAEQ is a Large Cap Blend Equities fund actively managed by Alpha Architect, while SPY is a S&P 500 fund tracking the S&P 500 Index. AAEQ is actively managed, while SPY is passively managed. With a 0.98 correlation, they move nearly in lockstep. AAEQ charges 0.15%/yr vs 0.09%/yr for SPY.

Performance

AAEQ vs. SPY - Performance Comparison

The chart below illustrates the hypothetical performance of a $10,000 investment in Alpha Architect US Equity 2 ETF (AAEQ) and State Street SPDR S&P 500 ETF (SPY). The values are adjusted to include any dividend payments, if applicable.

Returns By Period

In the year-to-date period, AAEQ achieves a 9.45% return, which is significantly lower than SPY's 11.33% return.

AAEQ

• 1D: 0.49%
• 1M: 4.47%
• YTD: 9.45%
• 6M: —
• 1Y: —
• 3Y*: —
• 5Y*: —
• 10Y*: —

SPY

• 1D: 0.38%
• 1M: 4.60%
• YTD: 11.33%
• 6M: 11.25%
• 1Y: 28.50%
• 3Y*: 22.58%
• 5Y*: 13.91%
• 10Y*: 15.48%

*Multi-year figures are annualized to reflect compound growth (CAGR)

AAEQ vs. SPY - Yearly Performance Comparison

	2026 (YTD)	2025
AAEQ Alpha Architect US Equity 2 ETF	9.45%	-1.99%
SPY State Street SPDR S&P 500 ETF	11.33%	-0.53%

Correlation

The correlation between AAEQ and SPY is 0.98 - these two move nearly in lockstep. At this level, holding both provides almost no diversification benefit. If you already own one, adding the other does little to reduce portfolio risk.

	Correlation
Correlation (All Time) Calculated using the full available price history since Dec 11, 2025	0.98

AAEQ vs. SPY - Sectors Allocation Comparison

Sectors	AAEQ	SPY
Technology	35.9%	35.9%
Financial Services	11.8%	11.8%
Communication Services	11.7%	11.3%
Consumer Cyclical	10.3%	10.3%
Healthcare	8.6%	8.4%
Industrials	7.9%	7.8%
Consumer Defensive	4.4%	4.8%
Energy	3.8%	3.6%
Utilities	2.4%	2.4%
Basic Materials	1.7%	1.8%
Real Estate	1.5%	1.9%

Return for Risk

AAEQ vs. SPY — Risk / Return Rank

Compare risk-adjusted metric ranks to identify better-performing investments over the past 12 months.

SPY

SPY Risk / Return Rank: 74
SPY Sharpe Ratio Rank: 76
SPY Sortino Ratio Rank: 74
SPY Omega Ratio Rank: 75
SPY Calmar Ratio Rank: 66
SPY Martin Ratio Rank: 78

The rank (0–100) shows how this investment's returns compare to the risk taken. Higher = better. Based on the past 12 months of data, combining Sharpe, Sortino, and other metrics used by quantitative funds and institutional investors.

AAEQ vs. SPY - Risk-Adjusted Trends Comparison

This table presents a comparison of risk-adjusted performance metrics for Alpha Architect US Equity 2 ETF (AAEQ) and State Street SPDR S&P 500 ETF (SPY). Risk-adjusted metrics are performance indicators that assess an investment's returns in relation to its risk, enabling a more accurate comparison of different investment options.

Risk / return metrics aren't available yet — we need at least 12 months of trading data to calculate them.

Sharpe Ratios by Period

	AAEQ	SPY	Difference
Sharpe Ratio (1Y) Calculated over the trailing 1-year period	—	2.42	—
Sharpe Ratio (5Y) Calculated over the trailing 5-year period	—	0.82	—
Sharpe Ratio (10Y) Calculated over the trailing 10-year period	—	0.87	—
Sharpe Ratio (All Time) Calculated using the full available price history	1.17	0.59	+0.58

Drawdowns

AAEQ vs. SPY - Drawdown Comparison

The maximum AAEQ drawdown since its inception was -10.26%, smaller than the maximum SPY drawdown of -55.19%. Use the drawdown chart below to compare losses from any high point for AAEQ and SPY.

Drawdown Indicators

	AAEQ	SPY	Difference
Max Drawdown Largest peak-to-trough decline	-10.26%	-55.19%	+44.93%
Max Drawdown (1Y) Largest decline over 1 year	—	-8.88%	—
Max Drawdown (3Y) Largest decline over 3 years	—	-18.76%	—
Max Drawdown (5Y) Largest decline over 5 years	—	-24.50%	—
Max Drawdown (10Y) Largest decline over 10 years	—	-33.72%	—
Current Drawdown Current decline from peak	-0.26%	-0.33%	+0.07%
Average Drawdown Average peak-to-trough decline	-2.44%	-9.05%	+6.61%
Ulcer Index Depth and duration of drawdowns from previous peaks	—	1.91%	—

Volatility

Volatility by Period

	AAEQ	SPY	Difference
Volatility (1M) Calculated over the trailing 1-month period	—	2.79%	—
Volatility (6M) Calculated over the trailing 6-month period	—	8.91%	—
Volatility (1Y) Calculated over the trailing 1-year period	13.67%	11.82%	+1.85%
Volatility (5Y) Calculated over the trailing 5-year period, annualized	13.67%	17.05%	-3.38%
Volatility (10Y) Calculated over the trailing 10-year period, annualized	13.67%	17.93%	-4.26%

AAEQ vs. SPY - Expense Ratio Comparison

AAEQ has a 0.15% expense ratio, which is higher than SPY's 0.09% expense ratio. However, both funds are considered low-cost compared to the broader market, where average expense ratios usually range from 0.3% to 0.9%.

Dividends

AAEQ vs. SPY - Dividend Comparison

AAEQ's dividend yield for the trailing twelve months is around 0.09%, less than SPY's 0.98% yield.

Position	TTM	2025	2024	2023	2022	2021	2020	2019	2018	2017	2016	2015
AAEQ Alpha Architect US Equity 2 ETF	0.09%	0.10%	0.00%	0.00%	0.00%	0.00%	0.00%	0.00%	0.00%	0.00%	0.00%	0.00%
SPY State Street SPDR S&P 500 ETF	0.98%	1.07%	1.21%	1.40%	1.65%	1.20%	1.52%	1.75%	2.04%	1.80%	2.03%	2.06%

Frequently Asked Questions

Can I hold both AAEQ and SPY in my portfolio?

With a correlation of 0.98, AAEQ and SPY move almost identically. Holding both adds very little diversification - you're essentially doubling your position in the same market segment. Choosing one is usually more capital-efficient.

Which ETF is better, AAEQ or SPY?

On fees, SPY is cheaper at 0.09% per year. The better choice depends on whether you care most about return, fees, risk, or income.

Which ETF is cheaper, AAEQ or SPY?

SPY is cheaper with a 0.09% expense ratio, compared with 0.15% for AAEQ.

Which ETF pays a higher dividend yield, AAEQ or SPY?

SPY has the higher dividend yield at 0.98%, compared with 0.09% for AAEQ.

What is the main difference between AAEQ and SPY?

AAEQ is categorized as Large Cap Blend Equities, while SPY is S&P 500. They also come from different issuers: Alpha Architect and State Street. Their fees differ too: 0.15% for AAEQ and 0.09% for SPY.