NFFFX vs. SPY

Last updated Aug 1, 2026

NFFFX (American Funds New World Fund) and SPY (State Street SPDR S&P 500 ETF) are both funds - NFFFX is a Emerging Markets Equities fund managed by American Funds, while SPY is a S&P 500 fund tracking the S&P 500 Index. Over the past 10 years, NFFFX returned 10.27%/yr vs 15.07%/yr for SPY. Their correlation of 0.81 means they have usually moved in the same direction. NFFFX charges 0.68%/yr vs 0.09%/yr for SPY.

Performance

NFFFX vs. SPY - Performance Comparison

The chart below illustrates the hypothetical performance of a $10,000 investment in American Funds New World Fund (NFFFX) 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, NFFFX achieves a 11.79% return, which is significantly higher than SPY's 10.13% return. Over the past 10 years, NFFFX has underperformed SPY with an annualized return of 10.27%, while SPY has yielded a comparatively higher 15.07% annualized return.

NFFFX

• 1D: 3.29%
• 1M: -1.64%
• 6M: 5.49%
• YTD: 11.79%
• 1Y: 26.60%
• 3Y*: 15.36%
• 5Y*: 6.40%
• 10Y*: 10.27%
• ALL TIME*: 6.60%

SPY

• 1D: 0.72%
• 1M: 0.30%
• 6M: 8.53%
• YTD: 10.13%
• 1Y: 21.49%
• 3Y*: 19.32%
• 5Y*: 12.76%
• 10Y*: 15.07%
• ALL TIME*: 10.79%

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

Liquidity Comparison

Position	Avg. Volume Value (2W)	Avg. Volume Value (1M)	Avg. Volume Value (3M)
NFFFX American Funds New World Fund	$0.00	$0.00	$0.00
SPY State Street SPDR S&P 500 ETF	$37.27B	$35.99B	$39.23B

NFFFX vs. SPY - Yearly Performance Comparison

	2026 (YTD)	2025	2024	2023	2022	2021	2020	2019	2018	2017
NFFFX American Funds New World Fund	11.79%	28.52%	6.78%	16.11%	-21.86%	4.98%	25.17%	27.89%	-12.08%	32.92%
SPY State Street SPDR S&P 500 ETF	10.13%	17.72%	24.89%	26.18%	-18.18%	28.73%	18.33%	31.22%	-4.57%	21.71%

Correlation

The correlation between NFFFX and SPY is 0.78, which is moderate. They have sometimes moved together and sometimes differently, sharing some price drivers without tracking each other closely.

	Correlation
Correlation (1Y) Focuses on recent behavior, but can change the most.	0.78
Correlation (3Y) Balances recent behavior with more history.	0.78
Correlation (5Y) Shows whether the relationship held over a longer period.	0.81
Correlation (10Y) Provides a long-term view across more market conditions.	0.80
Correlation (All Time) Calculated using the full available price history since Aug 1, 2008	0.81

The correlation between NFFFX and SPY has been stable across timeframes, ranging from 0.78 to 0.81 - a consistent structural relationship.

Return for Risk

NFFFX vs. SPY — Risk / Return Rank

Compare historical risk-adjusted metric ranks over the past 12 months.

NFFFX

NFFFX Risk / Return Rank: 54
NFFFX Sharpe Ratio Rank: 56
NFFFX Sortino Ratio Rank: 53
NFFFX Omega Ratio Rank: 59
NFFFX Calmar Ratio Rank: 54
NFFFX Martin Ratio Rank: 51

SPY

SPY Risk / Return Rank: 67
SPY Sharpe Ratio Rank: 67
SPY Sortino Ratio Rank: 64
SPY Omega Ratio Rank: 65
SPY Calmar Ratio Rank: 64
SPY Martin Ratio Rank: 76

The rank (0–100) uses a weighted average of the Sharpe, Sortino, Omega, Calmar, and Martin percentile ranks for the trailing 12 months. Higher means stronger historical risk-adjusted performance within the peer group.

NFFFX vs. SPY - Risk-Adjusted Trends Comparison

This table presents a comparison of risk-adjusted performance metrics for American Funds New World Fund (NFFFX) 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.

Values are calculated on a 1-year rolling basis and updated daily. Risk-adjusted metrics are more stable over longer periods — use the period switch above to explore them.

	NFFFX	SPY	Difference
Sharpe ratio: Return per unit of total volatility	1.38	1.52	-0.14
Sortino ratio: Return per unit of downside risk	1.94	2.11	-0.17
Omega ratio: Gain probability vs. loss probability	1.26	1.27	-0.01
Calmar ratio: Return relative to maximum drawdown	1.88	2.20	-0.32
Martin ratio: Return relative to average drawdown	6.84	9.40	-2.56

NFFFX vs. SPY - Sharpe Ratio Comparison

The current NFFFX Sharpe Ratio is 1.38, which is comparable to the SPY Sharpe Ratio of 1.52. The chart below compares the historical Sharpe Ratios of NFFFX 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.

Drawdowns

NFFFX vs. SPY - Drawdown Comparison

The maximum NFFFX drawdown since its inception was -50.17%, smaller than the maximum SPY drawdown of -55.19%. Use the drawdown chart below to compare losses from any high point for NFFFX and SPY.

Drawdown Indicators

	NFFFX	SPY	Difference
Max Drawdown Largest peak-to-trough decline	-50.17%	-55.19%	+5.02%
Max Drawdown (1Y) Largest decline over 1 year	-13.01%	-8.88%	-4.13%
Max Drawdown (3Y) Largest decline over 3 years	-15.05%	-18.76%	+3.71%
Max Drawdown (5Y) Largest decline over 5 years	-33.48%	-24.50%	-8.98%
Max Drawdown (10Y) Largest decline over 10 years	-33.48%	-33.72%	+0.24%
Current Drawdown Current decline from peak	-5.87%	-1.40%	-4.47%
Average Drawdown Average peak-to-trough decline	-9.76%	-9.01%	-0.75%
Ulcer Index Depth and duration of drawdowns from previous peaks	3.58%	2.08%	+1.50%

Volatility

NFFFX vs. SPY - Volatility Comparison

American Funds New World Fund (NFFFX) has a higher volatility of 7.06% compared to State Street SPDR S&P 500 ETF (SPY) at 3.58%. This indicates that NFFFX'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

	NFFFX	SPY	Difference
Volatility (1M) Calculated over the trailing 1-month period	7.06%	3.58%	+3.48%
Volatility (6M) Calculated over the trailing 6-month period	15.90%	10.14%	+5.76%
Volatility (1Y) Calculated over the trailing 1-year period	17.72%	12.89%	+4.83%
Volatility (5Y) Calculated over the trailing 5-year period, annualized	15.96%	17.18%	-1.22%
Volatility (10Y) Calculated over the trailing 10-year period, annualized	16.32%	17.95%	-1.63%

NFFFX vs. SPY - Expense Ratio Comparison

NFFFX has a 0.68% expense ratio, which is higher than SPY's 0.09% expense ratio.

Dividends

NFFFX vs. SPY - Dividend Comparison

NFFFX's dividend yield for the trailing twelve months is around 5.37%, more than SPY's 1.01% yield.

Position	TTM	2025	2024	2023	2022	2021	2020	2019	2018	2017	2016	2015
NFFFX American Funds New World Fund	5.37%	6.01%	4.01%	2.78%	1.21%	7.23%	0.35%	3.95%	2.62%	2.17%	1.28%	0.94%
SPY State Street SPDR S&P 500 ETF	1.01%	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 NFFFX and SPY in my portfolio?

NFFFX and SPY have a correlation of 0.78, meaning they provide meaningful diversification benefit when combined. Depending on your allocation goals, holding both could reduce overall portfolio risk.

Which is riskier, NFFFX or SPY?

NFFFX has higher volatility (7.06%) compared to SPY (3.58%). In terms of maximum drawdown, NFFFX dropped -50.17% vs SPY's -55.19%.

Which has better risk-adjusted returns?

SPY currently has the higher Sharpe Ratio (1.52 vs 1.38), 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.