TILT vs. SPY

Last updated Jun 24, 2026

TILT (FlexShares Morningstar US Market Factor Tilt Index Fund) and SPY (State Street SPDR S&P 500 ETF) are both exchange-traded funds - TILT is a Large Cap Blend Equities fund tracking the Morningstar US Market Factor Tilt Index, while SPY is a S&P 500 fund tracking the S&P 500 Index. Both are passively managed. Over the past 10 years, TILT returned 14.16%/yr vs 15.53%/yr for SPY. Their correlation of 0.93 suggests significant overlap in exposure. TILT charges 0.25%/yr vs 0.09%/yr for SPY.

Performance

TILT vs. SPY - Performance Comparison

The chart below illustrates the hypothetical performance of a $10,000 investment in FlexShares Morningstar US Market Factor Tilt Index Fund (TILT) 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, TILT achieves a 9.45% return, which is significantly higher than SPY's 8.15% return. Over the past 10 years, TILT has underperformed SPY with an annualized return of 14.16%, while SPY has yielded a comparatively higher 15.53% annualized return.

TILT

• 1D: -0.90%
• 1M: 0.03%
• YTD: 9.45%
• 6M: 8.42%
• 1Y: 25.74%
• 3Y*: 19.88%
• 5Y*: 11.30%
• 10Y*: 14.16%

SPY

• 1D: -1.45%
• 1M: -1.36%
• YTD: 8.15%
• 6M: 7.20%
• 1Y: 23.59%
• 3Y*: 20.68%
• 5Y*: 13.05%
• 10Y*: 15.53%

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

TILT vs. SPY - Yearly Performance Comparison

	2026 (YTD)	2025	2024	2023	2022	2021	2020	2019	2018	2017
TILT FlexShares Morningstar US Market Factor Tilt Index Fund	9.45%	16.59%	19.88%	24.70%	-17.25%	27.61%	16.05%	29.01%	-8.93%	18.33%
SPY State Street SPDR S&P 500 ETF	8.15%	17.72%	24.89%	26.18%	-18.18%	28.73%	18.33%	31.22%	-4.57%	21.71%

Correlation

The correlation between TILT and SPY is 0.96 - these two move nearly in lockstep. At this level, holding both provides almost no diversification benefit. If you already own one, adding the other does little to reduce portfolio risk.

	Correlation
Correlation (1Y) Calculated over the trailing 1-year period	0.96
Correlation (3Y) Calculated over the trailing 3-year period	0.95
Correlation (5Y) Calculated over the trailing 5-year period	0.96
Correlation (10Y) Calculated over the trailing 10-year period	0.95
Correlation (All Time) Calculated using the full available price history since Sep 22, 2011	0.93

The correlation between TILT and SPY has been stable across timeframes, ranging from 0.93 to 0.96 - a consistent structural relationship.

TILT vs. SPY - Sectors Allocation Comparison

Sectors	TILT	SPY
Technology	30.4%	39.0%
Financial Services	15.3%	11.1%
Consumer Cyclical	10.6%	9.9%
Industrials	9.7%	7.8%
Healthcare	9.2%	8.3%
Communication Services	8.3%	10.6%
Energy	4.3%	3.1%
Consumer Defensive	4.3%	4.5%
Real Estate	3.0%	1.8%
Basic Materials	2.7%	1.7%
Utilities	2.2%	2.1%

Return for Risk

TILT vs. SPY — Risk / Return Rank

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

TILT

TILT Risk / Return Rank: 68
TILT Sharpe Ratio Rank: 67
TILT Sortino Ratio Rank: 66
TILT Omega Ratio Rank: 66
TILT Calmar Ratio Rank: 65
TILT Martin Ratio Rank: 75

SPY

SPY Risk / Return Rank: 59
SPY Sharpe Ratio Rank: 58
SPY Sortino Ratio Rank: 56
SPY Omega Ratio Rank: 57
SPY Calmar Ratio Rank: 56
SPY Martin Ratio Rank: 67

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.

TILT vs. SPY - Risk-Adjusted Trends Comparison

This table presents a comparison of risk-adjusted performance metrics for FlexShares Morningstar US Market Factor Tilt Index Fund (TILT) 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.

	TILT	SPY	Difference
Sharpe ratio: Return per unit of total volatility	2.04	1.90	+0.14
Sortino ratio: Return per unit of downside risk	2.82	2.58	+0.24
Omega ratio: Gain probability vs. loss probability	1.37	1.34	+0.02
Calmar ratio: Return relative to maximum drawdown	3.04	2.67	+0.37
Martin ratio: Return relative to average drawdown	13.10	11.92	+1.18

TILT vs. SPY - Sharpe Ratio Comparison

The current TILT Sharpe Ratio is 2.04, which is comparable to the SPY Sharpe Ratio of 1.90. The chart below compares the historical Sharpe Ratios of TILT 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

TILT vs. SPY - Drawdown Comparison

The maximum TILT drawdown since its inception was -38.46%, smaller than the maximum SPY drawdown of -55.19%. Use the drawdown chart below to compare losses from any high point for TILT and SPY.

Drawdown Indicators

	TILT	SPY	Difference
Max Drawdown Largest peak-to-trough decline	-38.46%	-55.19%	+16.73%
Max Drawdown (1Y) Largest decline over 1 year	-8.51%	-8.88%	+0.37%
Max Drawdown (3Y) Largest decline over 3 years	-19.85%	-18.76%	-1.09%
Max Drawdown (5Y) Largest decline over 5 years	-24.12%	-24.50%	+0.38%
Max Drawdown (10Y) Largest decline over 10 years	-38.46%	-33.72%	-4.74%
Current Drawdown Current decline from peak	-1.90%	-3.17%	+1.27%
Average Drawdown Average peak-to-trough decline	-4.22%	-9.04%	+4.82%
Ulcer Index Depth and duration of drawdowns from previous peaks	1.97%	1.98%	-0.01%

Volatility

TILT vs. SPY - Volatility Comparison

The current volatility for FlexShares Morningstar US Market Factor Tilt Index Fund (TILT) is 4.31%, while State Street SPDR S&P 500 ETF (SPY) has a volatility of 4.87%. This indicates that TILT 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.

Volatility by Period

	TILT	SPY	Difference
Volatility (1M) Calculated over the trailing 1-month period	4.31%	4.87%	-0.56%
Volatility (6M) Calculated over the trailing 6-month period	9.58%	9.85%	-0.27%
Volatility (1Y) Calculated over the trailing 1-year period	12.69%	12.50%	+0.19%
Volatility (5Y) Calculated over the trailing 5-year period, annualized	17.44%	17.15%	+0.29%
Volatility (10Y) Calculated over the trailing 10-year period, annualized	18.75%	17.95%	+0.80%

TILT vs. SPY - Expense Ratio Comparison

TILT has a 0.25% expense ratio, which is higher than SPY's 0.09% expense ratio. However, both funds are considered low-cost compared to the broader market, where average expense ratios usually range from 0.3% to 0.9%.

Dividends

TILT vs. SPY - Dividend Comparison

TILT's dividend yield for the trailing twelve months is around 1.10%, more than SPY's 1.03% yield.

Position	TTM	2025	2024	2023	2022	2021	2020	2019	2018	2017	2016	2015
SPY State Street SPDR S&P 500 ETF	1.03%	1.07%	1.21%	1.40%	1.65%	1.20%	1.52%	1.75%	2.04%	1.80%	2.03%	2.06%
TILT FlexShares Morningstar US Market Factor Tilt Index Fund	1.10%	1.15%	1.23%	1.44%	1.60%	1.16%	1.49%	1.54%	1.97%	1.55%	1.60%	1.98%

Frequently Asked Questions

Can I hold both TILT and SPY in my portfolio?

With a correlation of 0.96, TILT 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, TILT or SPY?

SPY has higher volatility (4.87%) compared to TILT (4.31%). In terms of maximum drawdown, TILT dropped -38.46% vs SPY's -55.19%.

Which ETF is better, TILT or SPY?

On 10-year performance, SPY leads with 15.53% vs 14.16% for TILT. On fees, SPY is cheaper at 0.09% per year. On volatility, TILT has been the lower-risk option at 4.31%. The better choice depends on whether you care most about return, fees, risk, or income.

Which ETF has performed better, TILT or SPY?

Over the 10-year period, SPY has performed better with a 15.53% return vs 14.16%. Past performance does not guarantee future results, so compare this with risk, fees, and fund exposure.

Which ETF is cheaper, TILT or SPY?

SPY is cheaper with a 0.09% expense ratio, compared with 0.25% for TILT.

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

TILT has the higher dividend yield at 1.10%, compared with 1.03% for SPY.

What is the main difference between TILT and SPY?

TILT is categorized as Large Cap Blend Equities, while SPY is S&P 500. TILT tracks Morningstar US Market Factor Tilt Index, while SPY tracks S&P 500 Index. They also come from different issuers: FlexShares and State Street. Their fees differ too: 0.25% for TILT and 0.09% for SPY.

Which has better risk-adjusted returns?

TILT currently has the higher Sharpe Ratio (2.04 vs 1.90), 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.