FIW vs. SPY

Last updated Jun 3, 2026

FIW (First Trust Water ETF) and SPY (State Street SPDR S&P 500 ETF) are both exchange-traded funds - FIW is a Water Equities fund tracking the ISE Clean Edge Water Index, while SPY is a S&P 500 fund tracking the S&P 500 Index. Both are passively managed. Over the past 10 years, FIW returned 12.14%/yr vs 15.57%/yr for SPY. Their correlation of 0.81 suggests significant overlap in exposure. FIW charges 0.54%/yr vs 0.09%/yr for SPY.

Performance

FIW vs. SPY - Performance Comparison

The chart below illustrates the hypothetical performance of a $10,000 investment in First Trust Water ETF (FIW) 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, FIW achieves a -4.05% return, which is significantly lower than SPY's 11.69% return. Over the past 10 years, FIW has underperformed SPY with an annualized return of 12.14%, while SPY has yielded a comparatively higher 15.57% annualized return.

FIW

• 1D: 0.45%
• 1M: -2.15%
• YTD: -4.05%
• 6M: -6.21%
• 1Y: 0.08%
• 3Y*: 7.74%
• 5Y*: 5.43%
• 10Y*: 12.14%

SPY

• 1D: 0.14%
• 1M: 5.40%
• YTD: 11.69%
• 6M: 12.09%
• 1Y: 29.62%
• 3Y*: 22.64%
• 5Y*: 14.20%
• 10Y*: 15.57%

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

FIW vs. SPY - Yearly Performance Comparison

	2026 (YTD)	2025	2024	2023	2022	2021	2020	2019	2018	2017
FIW First Trust Water ETF	-4.05%	7.20%	8.38%	20.35%	-15.70%	32.00%	21.15%	37.37%	-9.23%	24.69%
SPY State Street SPDR S&P 500 ETF	11.69%	17.72%	24.89%	26.18%	-18.18%	28.73%	18.33%	31.22%	-4.57%	21.71%

Correlation

The correlation between FIW and SPY is 0.62, which is moderate. They share some common price drivers but move independently often enough to provide real diversification benefit when combined.

	Correlation
Correlation (1Y) Calculated over the trailing 1-year period	0.62
Correlation (3Y) Calculated over the trailing 3-year period	0.68
Correlation (5Y) Calculated over the trailing 5-year period	0.77
Correlation (10Y) Calculated over the trailing 10-year period	0.78
Correlation (All Time) Calculated using the full available price history since May 14, 2007	0.81

The correlation between FIW and SPY shifts across timeframes, from 0.62 (1 year) to 0.81 (all time), reflecting how their relationship changes across market environments.

FIW vs. SPY - Sectors Allocation Comparison

Sectors	FIW	SPY
Industrials	54.1%	7.8%
Utilities	16.2%	2.4%
Healthcare	8.1%	8.4%
Technology	8.1%	35.9%
Basic Materials	5.4%	1.8%
Consumer Cyclical	2.7%	10.3%
Consumer Defensive	2.7%	4.8%
Communication Services	-	11.3%
Energy	-	3.6%
Financial Services	-	11.8%
Real Estate	-	1.9%

Return for Risk

FIW vs. SPY — Risk / Return Rank

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

FIW

FIW Risk / Return Rank: 8
FIW Sharpe Ratio Rank: 9
FIW Sortino Ratio Rank: 8
FIW Omega Ratio Rank: 8
FIW Calmar Ratio Rank: 8
FIW Martin Ratio Rank: 8

SPY

SPY Risk / Return Rank: 75
SPY Sharpe Ratio Rank: 77
SPY Sortino Ratio Rank: 75
SPY Omega Ratio Rank: 76
SPY Calmar Ratio Rank: 68
SPY Martin Ratio Rank: 80

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.

FIW vs. SPY - Risk-Adjusted Trends Comparison

This table presents a comparison of risk-adjusted performance metrics for First Trust Water ETF (FIW) 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.

	FIW	SPY	Difference
Sharpe ratio Return per unit of total volatility	0.01	2.52	-2.52
Sortino ratio Return per unit of downside risk	0.12	3.42	-3.29
Omega ratio Gain probability vs. loss probability	1.01	1.46	-0.45
Calmar ratio Return relative to maximum drawdown	-0.06	3.42	-3.47
Martin ratio Return relative to average drawdown	-0.15	15.93	-16.08
Data is calculated on a 1-year rolling basis and updated daily. The trend shows the change in the indicator over the past month.

FIW vs. SPY - Sharpe Ratio Comparison

The current FIW Sharpe Ratio is 0.01, which is lower than the SPY Sharpe Ratio of 2.52. The chart below compares the historical Sharpe Ratios of FIW and SPY, calculated using daily returns over the previous 12 months. A higher Sharpe Ratio indicates better risk-adjusted performance relative to the risk-free rate.

Sharpe Ratios by Period

	FIW	SPY	Difference
Sharpe Ratio (1Y) Calculated over the trailing 1-year period	0.01	2.52	-2.52
Sharpe Ratio (5Y) Calculated over the trailing 5-year period	0.30	0.84	-0.54
Sharpe Ratio (10Y) Calculated over the trailing 10-year period	0.61	0.87	-0.26
Sharpe Ratio (All Time) Calculated using the full available price history	0.43	0.59	-0.16

Drawdowns

FIW vs. SPY - Drawdown Comparison

The maximum FIW drawdown since its inception was -52.75%, roughly equal to the maximum SPY drawdown of -55.19%. Use the drawdown chart below to compare losses from any high point for FIW and SPY.

Drawdown Indicators

	FIW	SPY	Difference
Max Drawdown Largest peak-to-trough decline	-52.75%	-55.19%	+2.44%
Max Drawdown (1Y) Largest decline over 1 year	-13.81%	-8.88%	-4.93%
Max Drawdown (3Y) Largest decline over 3 years	-18.32%	-18.76%	+0.44%
Max Drawdown (5Y) Largest decline over 5 years	-28.53%	-24.50%	-4.03%
Max Drawdown (10Y) Largest decline over 10 years	-36.60%	-33.72%	-2.88%
Current Drawdown Current decline from peak	-10.01%	0.00%	-10.01%
Average Drawdown Average peak-to-trough decline	-8.30%	-9.05%	+0.75%
Ulcer Index Depth and duration of drawdowns from previous peaks	5.29%	1.91%	+3.38%

Volatility

FIW vs. SPY - Volatility Comparison

First Trust Water ETF (FIW) has a higher volatility of 4.55% compared to State Street SPDR S&P 500 ETF (SPY) at 2.75%. This indicates that FIW'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.

Volatility by Period

	FIW	SPY	Difference
Volatility (1M) Calculated over the trailing 1-month period	4.55%	2.75%	+1.80%
Volatility (6M) Calculated over the trailing 6-month period	11.44%	8.89%	+2.55%
Volatility (1Y) Calculated over the trailing 1-year period	15.53%	11.81%	+3.72%
Volatility (5Y) Calculated over the trailing 5-year period, annualized	18.35%	17.05%	+1.30%
Volatility (10Y) Calculated over the trailing 10-year period, annualized	19.90%	17.94%	+1.96%

FIW vs. SPY - Expense Ratio Comparison

FIW has a 0.54% expense ratio, which is higher than SPY's 0.09% expense ratio.

Dividends

FIW vs. SPY - Dividend Comparison

FIW's dividend yield for the trailing twelve months is around 0.79%, less than SPY's 0.97% yield.

Position	TTM	2025	2024	2023	2022	2021	2020	2019	2018	2017	2016	2015
FIW First Trust Water ETF	0.79%	0.69%	0.69%	0.68%	0.67%	0.37%	0.56%	0.55%	0.73%	1.13%	0.51%	0.76%
SPY State Street SPDR S&P 500 ETF	0.97%	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 FIW and SPY in my portfolio?

FIW and SPY have a correlation of 0.62, meaning they provide meaningful diversification benefit when combined. Depending on your allocation goals, holding both could reduce overall portfolio risk.

Which is riskier, FIW or SPY?

FIW has higher volatility (4.55%) compared to SPY (2.75%). In terms of maximum drawdown, FIW dropped -52.75% vs SPY's -55.19%.

Which ETF is better, FIW or SPY?

On 10-year performance, SPY leads with 15.57% vs 12.14% for FIW. On fees, SPY is cheaper at 0.09% per year. On volatility, SPY has been the lower-risk option at 2.75%. The better choice depends on whether you care most about return, fees, risk, or income.

Which ETF has performed better, FIW or SPY?

Over the 10-year period, SPY has performed better with a 15.57% return vs 12.14%. Past performance does not guarantee future results, so compare this with risk, fees, and fund exposure.

Which ETF is cheaper, FIW or SPY?

SPY is cheaper with a 0.09% expense ratio, compared with 0.54% for FIW.

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

SPY has the higher dividend yield at 0.97%, compared with 0.79% for FIW.

What is the main difference between FIW and SPY?

FIW is categorized as Water Equities, while SPY is S&P 500. FIW tracks ISE Clean Edge Water Index, while SPY tracks S&P 500 Index. They also come from different issuers: First Trust and State Street. Their fees differ too: 0.54% for FIW and 0.09% for SPY.

Which has better risk-adjusted returns?

SPY currently has the higher Sharpe Ratio (2.52 vs 0.01), meaning it's delivered slightly more return per unit of risk over the trailing 12 months. However, this ranking shifts over time - use the Risk/Return Score above for a more comprehensive view that combines Sharpe, Sortino, and other measures used by quantitative funds.