SPY versus SPLV and RSP

S&P 500 ETF (SPY) versus S&P 500 low volatility ETF (SPLV) and S&P 500 equal weight ETF (RSP) 10 and 15 years back, respectively.

There does not seem to be any real advantage choosing SPLV or RSP over SPY.

https://www.morningstar.com/etfs/arcx/spy/performance
https://www.morningstar.com/etfs/arcx/splv/performance
https://www.morningstar.com/etfs/arcx/rsp/performance

 

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Long term SPY > outperforms SPLV;
but sometimes SPLV will live its nickname.
But i noticed sometimes in SPLV/ funds + elephant buyers jump on the long side+ beats SPY a lot.
Long term repeating,, SPY %>SPLV, shown on your charts2;
SPLV pays better yield \no wonder it tends to underperform SPY[all data]

 

Maverick, love your threads. I'm behind on my testing. I'm going to test these, my style. Will post my results soon. We'll see how it compares with what you linked. May the best ETF win!!!

 

It's all right here...

 

So... where should one be looking to deploy capital??

 

So, my calculations:

SPLV started trading 5/5/2011, so we'll run all 3 from that date.

From that date, being 100% in SPLV would have gotten you an IRR of 10.86%, max DD of 36.26%. That return to DD ratio is 29.95%.

For RSP is is IRR 11.45%, max DD 39.04%, with that ratio being 29.33%

For SPY its 12.02%, 33.72%, and 35.65%, respectively.

So, that demonstrates that SPY is the better performer, both from an absolute increase in value perspective and a return/max drawdown perspective.

Now, I suspect QQQ over same period will beat even that. Its numbers are, respectively:

16.03%, 35.12%, and 45.64%.

You might say, yea, it destroyed even the SPYs on the upside, but it had a (slightly) bigger drawdown.

However, if you invested only 66% of your accounts in the QQQs, you would (by my Excel math) have ended up with the same ending account balance as if you had put 100% in the SPYs, and your max DD would have bee only 23.18% (66% of 35.12%). The other 34% of your account could have been invested in your favorite interest bearing thing to come out that much more ahead.

So it seems to me no reason to go with SPLV or RSP, choose SPY, or even better yet through in some QQQs! Them QQQs are a beast of an ETF!

 

Scat, that looks about right, I just like running the numbers myself. Thanks!

 

What site do you use to do these calculations, and does it include dividends?

 

Finance.yahoo.com i download the spreadsheets from the historical data. I go by adjusted stock prices, which i was told takes into account dividends, stock splits, etc.

 

I am confused. Yes, finance.yahoo.com adjusted Closing stocks prices take into account dividends and splits, but how do you factor into the Returns calculations that the stock/ETF has paid out a dividend? Do you also download a dividend history and add that back in to the calculations?