AVL vs SPY

AVL vs SPY
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Quick Verdict

SPY has a lower expense ratio. SPY delivered stronger 1-year returns. SPY offers more diversification with 505 holdings.

Lower Fees: SPYHigher Returns: SPYMore Diversified: SPY

Side-by-Side Comparison

MetricAVLSPYWinner
Expense Ratio1.00%0.09%
AUM$186M$821.1B
Dividend Yield28.25%1.01%
Holdings10505
YTD Return-10.93%+13.17%
1Y Return+9.67%+21.53%
3Y Return (annualized)-+22.06%
5Y Return (annualized)-+13.35%
Volatility (annualized)113.7%15.3%
Max Drawdown-70.6%-56.5%
Fund FamilyDirexion Shares ETF TrustState Street Investment Management
CategoryAlternativeEquity
InceptionOct 10, 2024Jan 22, 1993

AVL vs SPY Performance

Direxion Daily AVGO Bull 2X ETF (AVL) is a ETF from Direxion Shares ETF Trust and State Street SPDR S&P 500 ETF Trust (SPY) is a ETF from State Street Investment Management. Over the past year AVL returned +9.67% while SPY returned +21.53%. Year to date, AVL is down 10.93% versus a gain of 13.17% for SPY.

Risk: Volatility and Drawdowns

AVL has been the more volatile fund, with annualized monthly volatility of 113.7% compared with 15.3% for SPY. Lower volatility generally means a smoother ride, though it often comes with lower long-run returns.

The deepest peak-to-trough decline in our data was -70.6% for AVL and -56.5% for SPY. Drawdown depth is worth weighing if you expect to sell during market stress rather than ride it out.

The two funds' monthly returns correlate at 0.44. They move independently enough that combining them can meaningfully diversify a portfolio.

Fees and Cost Over Time

AVL charges 1.00% per year while SPY charges 0.09%. On a $10,000 position that is $100 vs $9 annually, a gap of $91 per year that compounds over a long holding period. On income, AVL currently yields 28.25% against 1.01% for SPY.

Holdings Overlap

3.0%overlap

AVL and SPY share 1 holdings out of 508 unique holdings combined, representing a 3.0% weight overlap.

Moderate overlap means holding both could provide meaningful diversification benefits.

Top Shared Holdings

StockWeight in AVLWeight in SPYDifference
AVGO15.97%2.97%13.00%

Frequently Asked Questions

Which is cheaper, AVL or SPY?

AVL has an expense ratio of 1.00% while SPY charges 0.09%. SPY is the cheaper option. On a $10,000 investment, that is $91 per year of difference.

Which performed better, AVL or SPY?

Over the past year AVL returned +9.67% vs +21.53% for SPY, so SPY leads on 1-year performance. Over the longest common window we track (2 years), AVL annualized +42.92% vs +8.82% for SPY. Past performance does not guarantee future results.

Which is riskier, AVL or SPY?

AVL has been the more volatile fund at 113.7% annualized versus 15.3% for SPY. Worst drawdown: AVL -70.6% vs SPY -56.5%.

Should I hold both AVL and SPY?

AVL and SPY have a monthly-return correlation of 0.44, so combining them can provide real diversification depending on your allocation goals.

What is the holdings overlap between AVL and SPY?

AVL and SPY share 1 common holdings with a 3.0% weight overlap. Combined, they hold 508 unique securities.

Which pays a higher dividend, AVL or SPY?

AVL yields 28.25% while SPY yields 1.01%, so AVL currently pays the higher dividend yield.

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