BABO vs SPY
YieldMax BABA Option Income Strategy ETF vs State Street SPDR S&P 500 ETF Trust
Quick Verdict
SPY has a lower expense ratio. SPY delivered stronger 1-year returns. SPY offers more diversification with 503 holdings.
Side-by-Side Comparison
| Metric | BABO | SPY | Winner |
|---|---|---|---|
| Expense Ratio | 1.00% | 0.09% | |
| AUM | $17M | $789.1B | |
| Dividend Yield | 110.77% | 1.01% | |
| Holdings | 11 | 505 | |
| YTD Return | -18.81% | +13.39% | |
| 1Y Return | +1.07% | +22.52% | |
| 3Y Return (annualized) | - | +21.36% | |
| 5Y Return (annualized) | - | +13.19% | |
| Volatility (annualized) | 41.4% | 15.3% | |
| Max Drawdown | -42.6% | -56.5% | |
| Fund Family | YieldMax ETF | State Street Investment Management | |
| Category | Alternative | Equity | |
| Inception | Aug 7, 2024 | Jan 22, 1993 |
BABO vs SPY Performance
YieldMax BABA Option Income Strategy ETF (BABO) is a ETF from YieldMax ETF and State Street SPDR S&P 500 ETF Trust (SPY) is a ETF from State Street Investment Management. Over the past year BABO returned +1.07% while SPY returned +22.52%. Year to date, BABO is down 18.81% versus a gain of 13.39% for SPY.
Risk: Volatility and Drawdowns
BABO has been the more volatile fund, with annualized monthly volatility of 41.4% 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 -42.6% for BABO 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 0.17. They move independently enough that combining them can meaningfully diversify a portfolio.
Fees and Cost Over Time
BABO 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, BABO currently yields 110.77% against 1.01% for SPY.
Holdings Overlap
BABO and SPY share 0 holdings out of 506 unique holdings combined, representing a 0.0% weight overlap.
Moderate overlap means holding both could provide meaningful diversification benefits.
Frequently Asked Questions
Which is cheaper, BABO or SPY?
BABO 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, BABO or SPY?
Over the past year BABO returned +1.07% vs +22.52% for SPY, so SPY leads on 1-year performance. Over the longest common window we track (2 years), BABO annualized +11.81% vs +8.84% for SPY. Past performance does not guarantee future results.
Which is riskier, BABO or SPY?
BABO has been the more volatile fund at 41.4% annualized versus 15.3% for SPY. Worst drawdown: BABO -42.6% vs SPY -56.5%.
Should I hold both BABO and SPY?
BABO and SPY have a monthly-return correlation of 0.17, so combining them can provide real diversification depending on your allocation goals.
What is the holdings overlap between BABO and SPY?
BABO and SPY share 0 common holdings with a 0.0% weight overlap. Combined, they hold 506 unique securities.
Which pays a higher dividend, BABO or SPY?
BABO yields 110.77% while SPY yields 1.01%, so BABO currently pays the higher dividend yield.
Popular ETF Comparisons
Get Full ETF Analytics
Access complete holdings data, overlap analysis, screener tools, and more with FundXLS.