SMOT vs. SPY

Last updated Jun 4, 2026

SMOT (VanEck Morningstar SMID Moat ETF) and SPY (State Street SPDR S&P 500 ETF) are both exchange-traded funds - SMOT is a Mid Cap Blend Equities fund tracking the Morningstar US Small-Mid Cap Moat Focus, while SPY is a S&P 500 fund tracking the S&P 500 Index. Both are passively managed. Over the past 3 years, SMOT returned 11.98%/yr vs 22.35%/yr for SPY. A 0.80 correlation means they provide meaningful diversification when combined. SMOT charges 0.49%/yr vs 0.09%/yr for SPY.

Performance

SMOT vs. SPY - Performance Comparison

The chart below illustrates the hypothetical performance of a $10,000 investment in VanEck Morningstar SMID Moat ETF (SMOT) 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, SMOT achieves a 7.04% return, which is significantly lower than SPY's 10.91% return.

SMOT

• 1D: -0.21%
• 1M: 4.42%
• YTD: 7.04%
• 6M: 7.50%
• 1Y: 16.94%
• 3Y*: 11.98%
• 5Y*: —
• 10Y*: —

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)

SMOT vs. SPY - Yearly Performance Comparison

	2026 (YTD)	2025	2024	2023	2022
SMOT VanEck Morningstar SMID Moat ETF	7.04%	6.46%	10.71%	17.31%	5.41%
SPY State Street SPDR S&P 500 ETF	10.91%	17.72%	24.89%	26.18%	2.94%

Correlation

The correlation between SMOT and SPY is 0.69, 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	0.69
Correlation (3Y) Calculated over the trailing 3-year period	0.76
Correlation (All Time) Calculated using the full available price history since Oct 7, 2022	0.80

The correlation between SMOT and SPY shifts across timeframes, from 0.69 (1 year) to 0.80 (all time), reflecting how their relationship changes across market environments.

SMOT vs. SPY - Sectors Allocation Comparison

Sectors	SMOT	SPY
Technology	22.2%	35.9%
Healthcare	18.3%	8.4%
Consumer Cyclical	13.1%	10.3%
Industrials	12.0%	7.8%
Basic Materials	8.1%	1.8%
Consumer Defensive	7.8%	4.8%
Financial Services	6.0%	11.8%
Energy	4.7%	3.6%
Utilities	2.7%	2.4%
Real Estate	2.6%	1.9%
Communication Services	2.4%	11.3%

Return for Risk

SMOT vs. SPY — Risk / Return Rank

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

SMOT

SMOT Risk / Return Rank: 35
SMOT Sharpe Ratio Rank: 33
SMOT Sortino Ratio Rank: 35
SMOT Omega Ratio Rank: 31
SMOT Calmar Ratio Rank: 39
SMOT Martin Ratio Rank: 38

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.

SMOT vs. SPY - Risk-Adjusted Trends Comparison

This table presents a comparison of risk-adjusted performance metrics for VanEck Morningstar SMID Moat ETF (SMOT) 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.

	SMOT	SPY	Difference
Sharpe ratio: Return per unit of total volatility	1.21	2.38	-1.17
Sortino ratio: Return per unit of downside risk	1.86	3.24	-1.38
Omega ratio: Gain probability vs. loss probability	1.21	1.43	-0.22
Calmar ratio: Return relative to maximum drawdown	1.91	3.16	-1.25
Martin ratio: Return relative to average drawdown	6.12	14.72	-8.60
Data is calculated on a 1-year rolling basis and updated daily. The trend shows the change in the indicator over the past month.

SMOT vs. SPY - Sharpe Ratio Comparison

The current SMOT Sharpe Ratio is 1.21, which is lower than the SPY Sharpe Ratio of 2.38. The chart below compares the historical Sharpe Ratios of SMOT 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

	SMOT	SPY	Difference
Sharpe Ratio (1Y) Calculated over the trailing 1-year period	1.21	2.38	-1.17
Sharpe Ratio (5Y) Calculated over the trailing 5-year period	—	0.82	—
Sharpe Ratio (10Y) Calculated over the trailing 10-year period	—	0.87	—
Sharpe Ratio (All Time) Calculated using the full available price history	0.71	0.59	+0.12

Drawdowns

SMOT vs. SPY - Drawdown Comparison

The maximum SMOT drawdown since its inception was -23.36%, smaller than the maximum SPY drawdown of -55.19%. Use the drawdown chart below to compare losses from any high point for SMOT and SPY.

Drawdown Indicators

	SMOT	SPY	Difference
Max Drawdown Largest peak-to-trough decline	-23.36%	-55.19%	+31.83%
Max Drawdown (1Y) Largest decline over 1 year	-8.91%	-8.88%	-0.03%
Max Drawdown (3Y) Largest decline over 3 years	-23.36%	-18.76%	-4.60%
Max Drawdown (5Y) Largest decline over 5 years	—	-24.50%	—
Max Drawdown (10Y) Largest decline over 10 years	—	-33.72%	—
Current Drawdown Current decline from peak	-0.21%	-0.70%	+0.49%
Average Drawdown Average peak-to-trough decline	-4.81%	-9.05%	+4.24%
Ulcer Index Depth and duration of drawdowns from previous peaks	2.78%	1.91%	+0.87%

Volatility

SMOT vs. SPY - Volatility Comparison

VanEck Morningstar SMID Moat ETF (SMOT) has a higher volatility of 3.03% compared to State Street SPDR S&P 500 ETF (SPY) at 2.84%. This indicates that SMOT'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

	SMOT	SPY	Difference
Volatility (1M) Calculated over the trailing 1-month period	3.03%	2.84%	+0.19%
Volatility (6M) Calculated over the trailing 6-month period	9.47%	8.90%	+0.57%
Volatility (1Y) Calculated over the trailing 1-year period	14.14%	11.83%	+2.31%
Volatility (5Y) Calculated over the trailing 5-year period, annualized	18.42%	17.05%	+1.37%
Volatility (10Y) Calculated over the trailing 10-year period, annualized	18.42%	17.94%	+0.48%

SMOT vs. SPY - Expense Ratio Comparison

SMOT has a 0.49% expense ratio, which is higher than SPY's 0.09% expense ratio.

Dividends

SMOT vs. SPY - Dividend Comparison

SMOT's dividend yield for the trailing twelve months is around 1.28%, more than SPY's 0.98% yield.

Position	TTM	2025	2024	2023	2022	2021	2020	2019	2018	2017	2016	2015
SMOT VanEck Morningstar SMID Moat ETF	1.28%	1.37%	1.18%	0.65%	0.24%	0.00%	0.00%	0.00%	0.00%	0.00%	0.00%	0.00%
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 SMOT and SPY in my portfolio?

SMOT and SPY have a correlation of 0.69, meaning they provide meaningful diversification benefit when combined. Depending on your allocation goals, holding both could reduce overall portfolio risk.

Which is riskier, SMOT or SPY?

SMOT has higher volatility (3.03%) compared to SPY (2.84%). In terms of maximum drawdown, SMOT dropped -23.36% vs SPY's -55.19%.

Which ETF is better, SMOT or SPY?

On 3-year performance, SPY leads with 22.35% vs 11.98% for SMOT. On fees, SPY is cheaper at 0.09% per year. On volatility, SPY has been the lower-risk option at 2.84%. The better choice depends on whether you care most about return, fees, risk, or income.

Which ETF has performed better, SMOT or SPY?

Over the 3-year period, SPY has performed better with a 22.35% return vs 11.98%. Past performance does not guarantee future results, so compare this with risk, fees, and fund exposure.

Which ETF is cheaper, SMOT or SPY?

SPY is cheaper with a 0.09% expense ratio, compared with 0.49% for SMOT.

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

SMOT has the higher dividend yield at 1.28%, compared with 0.98% for SPY.

What is the main difference between SMOT and SPY?

SMOT is categorized as Mid Cap Blend Equities, while SPY is S&P 500. SMOT tracks Morningstar US Small-Mid Cap Moat Focus, while SPY tracks S&P 500 Index. They also come from different issuers: VanEck and State Street. Their fees differ too: 0.49% for SMOT and 0.09% for SPY.

Which has better risk-adjusted returns?

SPY currently has the higher Sharpe Ratio (2.38 vs 1.21), 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.