GET DAILY SIGNALSSPY vs SPYX: Weighing Full S&P 500 Exposure Against a Fossil Fuel-Free Approach
Key Takeaways
- SPY provides complete large-cap U.S. equity exposure through the S&P 500 Index, while SPYX tracks the same universe with fossil-fuel-reserve owners screened out.
- The two funds share nearly identical top holdings and technology-heavy sector profiles, so the core difference is an exclusion screen rather than a different investment strategy.
- SPY carries a materially lower expense ratio (0.09%) than SPYX (0.20%), a cost advantage that compounds over time.
- SPYX removes most traditional energy producers, tilting its relative positioning toward technology and growth while reducing direct fossil-fuel exposure.
- SPY offers deeper liquidity and broader diversification, including an energy sleeve that can act as an inflation and geopolitical hedge.
- Tickeron AI Verdict: SPY — lower cost, superior liquidity, and full-market diversification make it the structurally stronger choice for most investors.
Introduction
Investors weighing core U.S. equity exposure increasingly compare two closely related but meaningfully different exchange-traded funds (ETFs): the SPDR S&P 500 ETF Trust (SPY) and the SPDR S&P 500 Fossil Fuel Reserves Free ETF (SPYX). Both are issued by State Street Global Advisors and both track large-cap U.S. benchmarks, yet they serve distinct investor goals. This ETF comparison matters right now because sustainable-investing screens, energy-market volatility, and concentration in a handful of mega-cap technology names have made the choice between full-market exposure and a fossil-fuel-free tilt a central positioning decision. Understanding their structural differences in index construction, cost, sector exposure, and liquidity helps investors align fund selection with both financial objectives and values. I also checked this using Tickeron’s AI Screener to see how the two line up against peers.
SPDR S&P 500 ETF Trust (SPY) Overview
SPY is the oldest and most heavily traded U.S.-listed ETF, launched in 1993. It is a passively managed fund that seeks to replicate the price and yield performance of the S&P 500 Index, a benchmark of roughly 500 large-cap U.S. companies selected by an index committee to represent the domestic equity market. The fund typically holds about 505 securities, with the top 10 positions representing roughly 38% of assets.
Leading holdings include NVDA, AAPL, MSFT, AMZN, GOOGL, AVGO, GOOG, META, TSLA, and BRK-B. Information technology is the dominant sector at roughly 40% of the portfolio, followed by financials, healthcare, consumer discretionary, communication services, and industrials. Energy represents about 3%–4% of assets.
SPY carries a net expense ratio of 0.0945%, among the lowest in its category. A distinctive structural feature is that it is organized as a unit investment trust (UIT), an older legal structure that fully replicates its index but cannot reinvest dividends between distributions or engage in securities lending. Its enormous assets under management (AUM) and trading volume give it exceptional liquidity and narrow bid-ask spreads. From what I see, this liquidity edge stands out for larger or more frequent trades.
SPDR S&P 500 Fossil Fuel Reserves Free ETF (SPYX) Overview
SPYX seeks to track the S&P 500 Fossil Fuel Reserves Free Index, which measures the performance of companies in the S&P 500 that do not own fossil-fuel reserves. Launched in November 2015, it is a passively managed fund that screens out firms with direct ownership of oil, gas, or coal reserves while retaining companies that consume fossil fuels, such as utilities and airlines. The fund typically holds around 490 securities.
Its top holdings closely mirror the broad market, including NVDA, AAPL, MSFT, AMZN, GOOGL, AVGO, GOOG, META, TSLA, and BRK-B. Sector allocation is similarly technology-dominated at roughly 38%–39%, with the key difference in energy, which falls to about 1.2% of assets versus roughly 3.4% for SPY.
SPYX charges a net expense ratio of 0.20%, higher than SPY but still competitive within the socially screened category. As a conventional open-end fund within the SPDR Series Trust, it can reinvest dividends and engage in securities lending, though it has substantially smaller AUM and trading volume than SPY.
Industry and Thematic Backdrop
Both funds operate within the same large-cap U.S. equity ecosystem, where performance has been dominated by a small group of mega-cap technology and communication-services companies. Artificial-intelligence infrastructure spending, semiconductor demand, and cloud-computing growth remain the primary thematic drivers, concentrating returns in names such as NVDA and MSFT.
On the macro side, inflation trends, Federal Reserve interest-rate policy, and geopolitical energy supply disruptions have kept energy prices volatile. This creates a meaningful divergence: SPY retains an energy sleeve that can benefit from commodity strength, while SPYX largely forfeits that exposure in exchange for a cleaner environmental footprint. Meanwhile, rising regulatory scrutiny of environmental, social, and governance (ESG) labeling has increased demand for transparent exclusion strategies, supporting SPYX's relevance among values-driven allocators. One thing that stands out here is how the energy tilt could matter in certain macro environments.
Performance and Positioning Comparison
Because the two funds share virtually identical top holdings and sector weightings, their fund performance has historically tracked closely, with divergence concentrated in energy-linked periods. In recent weeks and months, when energy prices rose on supply concerns, SPY's fuller sector exposure provided a modest cushion relative to SPYX. Conversely, during growth-led rallies driven by technology earnings cycles, SPYX's slightly higher growth tilt has occasionally allowed it to edge ahead.
From a relative positioning standpoint, SPY offers broader diversification and lower tracking-cost drag, while SPYX trades some of that breadth for sustainability alignment. Volatility levels are nearly identical given the heavy overlap, but SPY's superior liquidity generally produces tighter spreads and more efficient execution, a tangible advantage for institutions and active traders alike. I’m watching this closely as liquidity differences can add up for frequent rebalancers.
Using Tickeron’s AI Tools for Deeper ETF Insights
In my own research process, Tickeron’s AI Screener has become a go-to resource for quickly comparing ETFs like these on factors such as sector exposure, cost efficiency, and liquidity metrics. It lets me apply custom filters across thousands of securities to spot patterns and relative strengths without manual effort. I find it especially useful when evaluating how small differences in holdings or fees might affect long-term outcomes.
Disclaimer
The information on this webpage is provided for general informational and educational purposes only and is not intended as investment advice, a recommendation to purchase or sell any security, or an offer or solicitation related to investments. It does not consider your personal financial situation, goals, or risk profile, and all investing carries inherent risks, including the possibility of losing your entire investment. For more details, please review our full disclaimer.
Contributor
I’m a trader and independent researcher. My interest lies at the intersection of financial markets, algorithms, and capital management. I develop data-driven tools and strategies and study algorithmic approaches to market analysis. I help turn complex market data into clear insights and practical systems. I believe technology should support, not replace, investment thinking
SPY in upward trend: price may ascend as a result of having broken its lower Bollinger Band on October 30, 2026
SPY may jump back above the lower band and head toward the middle band. Traders may consider buying the stock or exploring call options. In 35 of 39 cases where SPY's price broke its lower Bollinger Band, its price rose further in the following month. The odds of a continued upward trend are 90%.
Technical Analysis (Indicators)
Bullish Trend Analysis
The Stochastic Oscillator is in the oversold zone. Keep an eye out for a move up in the foreseeable future.
Following a +0.91% 3-day Advance, the price is estimated to grow further. Considering data from situations where SPY advanced for three days, in 295 of 356 cases, the price rose further within the following month. The odds of a continued upward trend are 83%.
Bearish Trend Analysis
The Momentum Indicator moved below the 0 level on October 29, 2026. You may want to consider selling the stock, shorting the stock, or exploring put options on SPY as a result. In 53 of 78 cases where the Momentum Indicator fell below 0, the stock fell further within the subsequent month. The odds of a continued downward trend are 68%.
The Moving Average Convergence Divergence Histogram (MACD) for SPY turned negative on October 15, 2026. This could be a sign that the stock is set to turn lower in the coming weeks. Traders may want to sell the stock or buy put options. Tickeron's A.I.dvisor looked at 51 similar instances when the indicator turned negative. In 38 of the 51 cases the stock turned lower in the days that followed. This puts the odds of success at 75%.
SPY moved below its 50-day moving average on October 30, 2026 date and that indicates a change from an upward trend to a downward trend.
The 10-day moving average for SPY crossed bearishly below the 50-day moving average on October 30, 2026. This indicates that the trend has shifted lower and could be considered a sell signal. In 12 of 16 past instances when the 10-day crossed below the 50-day, the stock continued to move higher over the following month. The odds of a continued downward trend are 75%.
Following a 3-day decline, the stock is projected to fall further. Considering past instances where SPY declined for three days, the price rose further in 50 of 62 cases within the following month. The odds of a continued downward trend are 76%.
The Aroon Indicator for SPY entered a downward trend on November 03, 2026. This could indicate a strong downward move is ahead for the stock. Traders may want to consider selling the stock or buying put options.
Notable companies
Industry description
Market Cap
High and low price notable news
Volume
Fundamental Analysis Ratings
The average fundamental analysis ratings, where 1 is best and 100 is worst, are as follows
Advertisement
General Information
Category LargeBlend
Advertisement