BITS vs SPY

BITS 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

MetricBITSSPYWinner
Expense Ratio0.65%0.09%
AUM$23M$821.1B
Dividend Yield25.64%1.01%
Holdings5505
YTD Return-17.16%+14.24%
1Y Return-16.72%+21.71%
3Y Return (annualized)+35.61%+22.10%
5Y Return (annualized)-+13.21%
Volatility (annualized)64.3%15.3%
Max Drawdown-83.1%-56.5%
Fund FamilyGlobal X by mirae AssetState Street Investment Management
CategoryAlternativeEquity
InceptionNov 15, 2021Jan 22, 1993

BITS vs SPY Performance

Global X Blockchain & Bitcoin Strategy ETF (BITS) is a ETF from Global X by mirae Asset and State Street SPDR S&P 500 ETF Trust (SPY) is a ETF from State Street Investment Management. Over the past year BITS returned -16.72% while SPY returned +21.71%. Year to date, BITS is down 17.16% versus a gain of 14.24% for SPY.

Over three years, BITS compounded at +35.61% per year against +22.10% for SPY. Across the full 5-year window we track, SPY has the edge at +8.86% annualized vs -2.48%. Past performance does not guarantee future results.

Risk: Volatility and Drawdowns

BITS has been the more volatile fund, with annualized monthly volatility of 64.3% 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 -83.1% for BITS 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 0.65. They move independently enough that combining them can meaningfully diversify a portfolio.

Fees and Cost Over Time

BITS charges 0.65% per year while SPY charges 0.09%. On a $10,000 position that is $65 vs $9 annually, a gap of $56 per year that compounds over a long holding period. On income, BITS currently yields 25.64% against 1.01% for SPY.

Holdings Overlap

0.0%overlap

BITS 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, BITS or SPY?

BITS has an expense ratio of 0.65% while SPY charges 0.09%. SPY is the cheaper option. On a $10,000 investment, that is $56 per year of difference.

Which performed better, BITS or SPY?

Over the past year BITS returned -16.72% vs +21.71% for SPY, so SPY leads on 1-year performance. Over the longest common window we track (5 years), BITS annualized -2.48% vs +8.86% for SPY. Past performance does not guarantee future results.

Which is riskier, BITS or SPY?

BITS has been the more volatile fund at 64.3% annualized versus 15.3% for SPY. Worst drawdown: BITS -83.1% vs SPY -56.5%.

Should I hold both BITS and SPY?

BITS and SPY have a monthly-return correlation of 0.65, so combining them can provide real diversification depending on your allocation goals.

What is the holdings overlap between BITS and SPY?

BITS and SPY share 0 common holdings with a 0.0% weight overlap. Combined, they hold 506 unique securities.

Which pays a higher dividend, BITS or SPY?

BITS yields 25.64% while SPY yields 1.01%, so BITS currently pays the higher dividend yield.

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