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.
Key characteristics
| NEWFX | SPY | |
|---|---|---|
| YTD Return | 9.00% | 19.17% |
| 1Y Return | 14.64% | 28.27% |
| 3Y Return (Ann) | -1.72% | 9.99% |
| 5Y Return (Ann) | 6.83% | 15.18% |
| 10Y Return (Ann) | 5.81% | 12.84% |
| Sharpe Ratio | 1.24 | 2.11 |
| Daily Std Dev | 11.44% | 12.62% |
| Max Drawdown | -56.09% | -55.19% |
| Current Drawdown | -7.47% | -0.36% |
Correlation
The correlation between NEWFX and SPY is 0.73, 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.
Performance
NEWFX vs. SPY - Performance Comparison
In the year-to-date period, NEWFX achieves a 9.00% return, which is significantly lower than SPY's 19.17% return. Over the past 10 years, NEWFX has underperformed SPY with an annualized return of 5.81%, while SPY has yielded a comparatively higher 12.84% 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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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 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.
Dividends
NEWFX vs. SPY - Dividend Comparison
NEWFX's dividend yield for the trailing twelve months is around 2.25%, more than SPY's 0.93% yield.
| TTM | 2023 | 2022 | 2021 | 2020 | 2019 | 2018 | 2017 | 2016 | 2015 | 2014 | 2013 | |
|---|---|---|---|---|---|---|---|---|---|---|---|---|
NEWFX American Funds New World Fund | 2.25% | 2.46% | 0.89% | 6.89% | 0.10% | 3.65% | 2.26% | 1.90% | 0.92% | 0.60% | 6.75% | 2.97% |
SPY SPDR S&P 500 ETF | 0.93% | 1.40% | 1.65% | 1.20% | 1.52% | 1.75% | 2.04% | 1.80% | 2.03% | 2.06% | 1.87% | 1.81% |
Drawdowns
NEWFX vs. SPY - Drawdown Comparison
The maximum NEWFX drawdown since its inception was -56.09%, 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. For additional features, visit the drawdowns tool.
Volatility
NEWFX vs. SPY - Volatility Comparison
The current volatility for American Funds New World Fund (NEWFX) is 3.73%, while SPDR S&P 500 ETF (SPY) has a volatility of 3.94%. 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.