BABU vs SPY

Quick Verdict

SPY has a lower expense ratio. SPY offers more diversification with 503 holdings.

Lower Fees: SPYHigher Returns: TiedMore Diversified: SPY

Side-by-Side Comparison

MetricBABUSPYWinner
Expense Ratio0.97%0.09%
AUM$6M$789.1B
Dividend Yield1.29%1.01%
Holdings10505
YTD Return-48.92%+13.68%
1Y Return-+21.53%
3Y Return (annualized)-+21.44%
5Y Return (annualized)-+13.18%
Volatility (annualized)-15.3%
Max Drawdown-69.5%-56.5%
Fund FamilyDirexion Shares ETF TrustState Street Investment Management
CategoryAlternativeEquity
InceptionFeb 11, 2026Jan 22, 1993

BABU vs SPY Performance

Direxion Daily BABA Bull 2X ETF (BABU) 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. Year to date, BABU is down 48.92% versus a gain of 13.68% for SPY.

Risk: Volatility and Drawdowns

The deepest peak-to-trough decline in our data was -69.5% for BABU and -56.5% for SPY. Drawdown depth is worth weighing if you expect to sell during market stress rather than ride it out.

Fees and Cost Over Time

BABU charges 0.97% per year while SPY charges 0.09%. On a $10,000 position that is $97 vs $9 annually, a gap of $88 per year that compounds over a long holding period. On income, BABU currently yields 1.29% against 1.01% for SPY.

Holdings Overlap

0.0%overlap

BABU and SPY share 0 holdings out of 507 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, BABU or SPY?

BABU has an expense ratio of 0.97% while SPY charges 0.09%. SPY is the cheaper option. On a $10,000 investment, that is $88 per year of difference.

What is the holdings overlap between BABU and SPY?

BABU and SPY share 0 common holdings with a 0.0% weight overlap. Combined, they hold 507 unique securities.

Which pays a higher dividend, BABU or SPY?

BABU yields 1.29% while SPY yields 1.01%, so BABU currently pays the higher dividend yield.

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