FRAAX vs. SPY

Last updated Jun 4, 2026

FRAAX (Franklin Growth Opportunities Fund) and SPY (State Street SPDR S&P 500 ETF) are both funds - FRAAX is a Large Cap Growth Equities fund managed by Franklin Templeton, while SPY is a S&P 500 fund tracking the S&P 500 Index. Over the past 10 years, FRAAX returned 14.95%/yr vs 15.49%/yr for SPY. Their correlation of 0.86 suggests significant overlap in exposure. FRAAX charges 0.65%/yr vs 0.09%/yr for SPY.

Performance

FRAAX vs. SPY - Performance Comparison

The chart below illustrates the hypothetical performance of a $10,000 investment in Franklin Growth Opportunities Fund (FRAAX) and State Street SPDR S&P 500 ETF (SPY). The values are adjusted to include any dividend payments, if applicable.

Returns By Period

The year-to-date returns for both stocks are quite close, with FRAAX having a 11.41% return and SPY slightly lower at 10.91%. Both investments have delivered pretty close results over the past 10 years, with FRAAX having a 14.95% annualized return and SPY not far ahead at 15.49%.

FRAAX

• 1D: 0.34%
• 1M: 7.38%
• YTD: 11.41%
• 6M: 11.21%
• 1Y: 19.22%
• 3Y*: 20.98%
• 5Y*: 7.51%
• 10Y*: 14.95%

SPY

• 1D: -0.70%
• 1M: 5.05%
• YTD: 10.91%
• 6M: 10.91%
• 1Y: 27.98%
• 3Y*: 22.35%
• 5Y*: 13.83%
• 10Y*: 15.49%

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

FRAAX vs. SPY - Yearly Performance Comparison

	2026 (YTD)	2025	2024	2023	2022	2021	2020	2019	2018	2017
FRAAX Franklin Growth Opportunities Fund	11.41%	8.35%	26.35%	39.92%	-36.97%	9.71%	45.79%	46.13%	-1.10%	29.12%
SPY State Street SPDR S&P 500 ETF	10.91%	17.72%	24.89%	26.18%	-18.18%	28.73%	18.33%	31.22%	-4.57%	21.71%

Correlation

The correlation between FRAAX and SPY is 0.91, indicating a strong positive relationship between their price movements. Combining them offers limited diversification - they tend to fall together during downturns.

	Correlation
Correlation (1Y) Calculated over the trailing 1-year period	0.91
Correlation (3Y) Calculated over the trailing 3-year period	0.91
Correlation (5Y) Calculated over the trailing 5-year period	0.91
Correlation (10Y) Calculated over the trailing 10-year period	0.89
Correlation (All Time) Calculated using the full available price history since Jun 24, 1999	0.86

The correlation between FRAAX and SPY has been stable across timeframes, ranging from 0.86 to 0.91 - a consistent structural relationship.

Return for Risk

FRAAX vs. SPY — Risk / Return Rank

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

FRAAX

FRAAX Risk / Return Rank: 17
FRAAX Sharpe Ratio Rank: 19
FRAAX Sortino Ratio Rank: 18
FRAAX Omega Ratio Rank: 19
FRAAX Calmar Ratio Rank: 14
FRAAX Martin Ratio Rank: 15

SPY

SPY Risk / Return Rank: 70
SPY Sharpe Ratio Rank: 71
SPY Sortino Ratio Rank: 69
SPY Omega Ratio Rank: 70
SPY Calmar Ratio Rank: 62
SPY Martin Ratio Rank: 75

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.

FRAAX vs. SPY - Risk-Adjusted Trends Comparison

This table presents a comparison of risk-adjusted performance metrics for Franklin Growth Opportunities Fund (FRAAX) 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.

	FRAAX	SPY	Difference
Sharpe ratio Return per unit of total volatility	1.25	2.38	-1.13
Sortino ratio Return per unit of downside risk	1.77	3.24	-1.47
Omega ratio Gain probability vs. loss probability	1.22	1.43	-0.21
Calmar ratio Return relative to maximum drawdown	1.26	3.16	-1.90
Martin ratio Return relative to average drawdown	4.21	14.72	-10.50
Data is calculated on a 1-year rolling basis and updated daily. The trend shows the change in the indicator over the past month.

FRAAX vs. SPY - Sharpe Ratio Comparison

The current FRAAX Sharpe Ratio is 1.25, which is lower than the SPY Sharpe Ratio of 2.38. The chart below compares the historical Sharpe Ratios of FRAAX 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

	FRAAX	SPY	Difference
Sharpe Ratio (1Y) Calculated over the trailing 1-year period	1.25	2.38	-1.13
Sharpe Ratio (5Y) Calculated over the trailing 5-year period	0.33	0.82	-0.49
Sharpe Ratio (10Y) Calculated over the trailing 10-year period	0.67	0.87	-0.20
Sharpe Ratio (All Time) Calculated using the full available price history	0.42	0.59	-0.17

Drawdowns

FRAAX vs. SPY - Drawdown Comparison

The maximum FRAAX drawdown since its inception was -78.63%, which is greater than SPY's maximum drawdown of -55.19%. Use the drawdown chart below to compare losses from any high point for FRAAX and SPY.

Drawdown Indicators

	FRAAX	SPY	Difference
Max Drawdown Largest peak-to-trough decline	-78.63%	-55.19%	-23.44%
Max Drawdown (1Y) Largest decline over 1 year	-15.75%	-8.88%	-6.87%
Max Drawdown (3Y) Largest decline over 3 years	-25.26%	-18.76%	-6.50%
Max Drawdown (5Y) Largest decline over 5 years	-47.54%	-24.50%	-23.04%
Max Drawdown (10Y) Largest decline over 10 years	-47.54%	-33.72%	-13.82%
Current Drawdown Current decline from peak	0.00%	-0.70%	+0.70%
Average Drawdown Average peak-to-trough decline	-29.10%	-9.05%	-20.05%
Ulcer Index Depth and duration of drawdowns from previous peaks	4.71%	1.91%	+2.80%

Volatility

FRAAX vs. SPY - Volatility Comparison

Franklin Growth Opportunities Fund (FRAAX) has a higher volatility of 3.81% compared to State Street SPDR S&P 500 ETF (SPY) at 2.84%. This indicates that FRAAX'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

	FRAAX	SPY	Difference
Volatility (1M) Calculated over the trailing 1-month period	3.81%	2.84%	+0.97%
Volatility (6M) Calculated over the trailing 6-month period	12.33%	8.90%	+3.43%
Volatility (1Y) Calculated over the trailing 1-year period	15.90%	11.83%	+4.07%
Volatility (5Y) Calculated over the trailing 5-year period, annualized	23.20%	17.05%	+6.15%
Volatility (10Y) Calculated over the trailing 10-year period, annualized	22.51%	17.94%	+4.57%

FRAAX vs. SPY - Expense Ratio Comparison

FRAAX has a 0.65% expense ratio, which is higher than SPY's 0.09% expense ratio.

Dividends

FRAAX vs. SPY - Dividend Comparison

FRAAX's dividend yield for the trailing twelve months is around 14.83%, more than SPY's 0.98% yield.

Position	TTM	2025	2024	2023	2022	2021	2020	2019	2018	2017	2016	2015
FRAAX Franklin Growth Opportunities Fund	14.83%	16.52%	9.57%	11.80%	4.31%	0.48%	5.29%	16.03%	12.10%	8.13%	1.97%	1.93%
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 FRAAX and SPY in my portfolio?

With a correlation of 0.91, FRAAX 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 is riskier, FRAAX or SPY?

FRAAX has higher volatility (3.81%) compared to SPY (2.84%). In terms of maximum drawdown, FRAAX dropped -78.63% vs SPY's -55.19%.

Which has better risk-adjusted returns?

SPY currently has the higher Sharpe Ratio (2.38 vs 1.25), 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.