FAF vs. SPY
Compare and contrast key facts about First American Financial Corporation (FAF) and SPDR S&P 500 ETF (SPY).
SPY is a passively managed fund by State Street that tracks the performance of the S&P 500 Index. It was launched on Jan 22, 1993.
Scroll down to visually compare performance, riskiness, drawdowns, and other indicators and decide which better suits your portfolio: FAF or SPY.
Key characteristics
| FAF | SPY | |
|---|---|---|
| YTD Return | -15.08% | 7.26% |
| 1Y Return | 1.07% | 25.03% |
| 3Y Return (Ann) | -2.98% | 8.37% |
| 5Y Return (Ann) | 2.04% | 13.44% |
| 10Y Return (Ann) | 10.98% | 12.49% |
| Sharpe Ratio | 0.06 | 2.35 |
| Daily Std Dev | 25.81% | 11.68% |
| Max Drawdown | -50.13% | -55.19% |
| Current Drawdown | -27.03% | -2.85% |
Correlation
The correlation between FAF and SPY is 0.54, which is considered to be moderate. This suggests that the two assets have some degree of positive relationship in their price movements. Moderate correlation can be acceptable for portfolio diversification, offering a balance between risk and potential returns.
Performance
FAF vs. SPY - Performance Comparison
In the year-to-date period, FAF achieves a -15.08% return, which is significantly lower than SPY's 7.26% return. Over the past 10 years, FAF has underperformed SPY with an annualized return of 10.98%, while SPY has yielded a comparatively higher 12.49% annualized return. The chart below displays the growth of a $10,000 investment in both assets, with all prices adjusted for splits and dividends.
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Risk-Adjusted Performance
FAF vs. SPY - Risk-Adjusted Performance Comparison
This table presents a comparison of risk-adjusted performance metrics for First American Financial Corporation (FAF) and 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.
Dividends
FAF vs. SPY - Dividend Comparison
FAF's dividend yield for the trailing twelve months is around 3.89%, more than SPY's 1.32% yield.
| TTM | 2023 | 2022 | 2021 | 2020 | 2019 | 2018 | 2017 | 2016 | 2015 | 2014 | 2013 | |
|---|---|---|---|---|---|---|---|---|---|---|---|---|
FAF First American Financial Corporation | 3.89% | 3.26% | 3.94% | 2.48% | 3.45% | 2.88% | 3.58% | 2.57% | 3.28% | 2.79% | 2.48% | 1.70% |
SPY SPDR S&P 500 ETF | 1.32% | 1.40% | 1.65% | 1.20% | 1.52% | 1.75% | 2.04% | 1.80% | 2.03% | 2.06% | 1.87% | 1.81% |
Drawdowns
FAF vs. SPY - Drawdown Comparison
The maximum FAF drawdown since its inception was -50.13%, smaller than the maximum SPY drawdown of -55.19%. Use the drawdown chart below to compare losses from any high point for FAF and SPY. For additional features, visit the drawdowns tool.
Volatility
FAF vs. SPY - Volatility Comparison
First American Financial Corporation (FAF) has a higher volatility of 11.75% compared to SPDR S&P 500 ETF (SPY) at 3.58%. This indicates that FAF's price experiences larger fluctuations and is considered to be riskier than SPY based on this measure. The chart below showcases a comparison of their rolling one-month volatility.