Correlation
The correlation between NEWFX and SPY is 0.74, which is considered to be high. That indicates a strong positive relationship between their price movements. Having highly-correlated positions in a portfolio may signal a lack of diversification, potentially leading to increased risk during market downturns.
NEWFX vs. SPY
Compare and contrast key facts about American Funds New World Fund (NEWFX) and SPDR S&P 500 ETF (SPY).
NEWFX is managed by American Funds. It was launched on Jun 16, 1999. 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: NEWFX or SPY.
Performance
NEWFX vs. SPY - Performance Comparison
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Key characteristics
NEWFX:
0.59
SPY:
0.64
NEWFX:
0.89
SPY:
1.04
NEWFX:
1.12
SPY:
1.15
NEWFX:
0.50
SPY:
0.69
NEWFX:
1.96
SPY:
2.64
NEWFX:
4.43%
SPY:
4.91%
NEWFX:
15.29%
SPY:
20.47%
NEWFX:
-56.45%
SPY:
-55.19%
NEWFX:
-0.28%
SPY:
-3.26%
Returns By Period
In the year-to-date period, NEWFX achieves a 10.34% return, which is significantly higher than SPY's 1.17% return. Over the past 10 years, NEWFX has underperformed SPY with an annualized return of 6.75%, while SPY has yielded a comparatively higher 12.78% annualized return.
NEWFX
10.34%
7.63%
8.81%
8.93%
8.82%
8.99%
6.75%
SPY
1.17%
7.36%
-0.95%
13.08%
14.15%
15.98%
12.78%
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NEWFX vs. SPY - Expense Ratio Comparison
NEWFX has a 0.96% expense ratio, which is higher than SPY's 0.09% expense ratio.
Risk-Adjusted Performance
NEWFX vs. SPY — Risk-Adjusted Performance Rank
NEWFX
SPY
NEWFX vs. SPY - Risk-Adjusted Performance Comparison
This table presents a comparison of risk-adjusted performance metrics for American Funds New World Fund (NEWFX) 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.
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Dividends
NEWFX vs. SPY - Dividend Comparison
NEWFX's dividend yield for the trailing twelve months is around 3.32%, more than SPY's 1.21% yield.
| TTM | 2024 | 2023 | 2022 | 2021 | 2020 | 2019 | 2018 | 2017 | 2016 | 2015 | 2014 | |
|---|---|---|---|---|---|---|---|---|---|---|---|---|
NEWFX American Funds New World Fund | 3.32% | 3.66% | 2.46% | 0.89% | 6.89% | 0.10% | 3.65% | 2.26% | 1.89% | 0.92% | 0.60% | 5.84% |
SPY SPDR S&P 500 ETF | 1.21% | 1.21% | 1.40% | 1.65% | 1.20% | 1.52% | 1.75% | 2.04% | 1.80% | 2.03% | 2.06% | 1.87% |
Drawdowns
NEWFX vs. SPY - Drawdown Comparison
The maximum NEWFX drawdown since its inception was -56.45%, roughly equal to the maximum SPY drawdown of -55.19%. Use the drawdown chart below to compare losses from any high point for NEWFX and SPY.
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Volatility
NEWFX vs. SPY - Volatility Comparison
The current volatility for American Funds New World Fund (NEWFX) is 3.01%, while SPDR S&P 500 ETF (SPY) has a volatility of 4.78%. This indicates that NEWFX experiences smaller price fluctuations and is considered to be less risky than SPY based on this measure. The chart below showcases a comparison of their rolling one-month volatility.
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