DEFI vs SPY

Quick Verdict

SPY has a lower expense ratio. SPY delivered stronger 1-year returns. SPY offers more diversification with 503 holdings.

Lower Fees: SPYHigher Returns: SPYMore Diversified: SPY

Side-by-Side Comparison

MetricDEFISPYWinner
Expense Ratio0.25%0.09%
AUM$14M$789.1B
Dividend Yield0.00%1.01%
Holdings3505
YTD Return-29.93%+13.68%
1Y Return-47.20%+21.53%
3Y Return (annualized)-+21.44%
5Y Return (annualized)-+13.18%
Volatility (annualized)51.5%15.3%
Max Drawdown-53.2%-56.5%
Fund FamilyHashdexState Street Investment Management
CategoryAlternativeEquity
InceptionSep 15, 2022Jan 22, 1993

DEFI vs SPY Performance

Hashdex Bitcoin ETF (DEFI) is a ETF from Hashdex and State Street SPDR S&P 500 ETF Trust (SPY) is a ETF from State Street Investment Management. Over the past year DEFI returned -47.20% while SPY returned +21.53%. Year to date, DEFI is down 29.93% versus a gain of 13.68% for SPY.

Risk: Volatility and Drawdowns

DEFI has been the more volatile fund, with annualized monthly volatility of 51.5% 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 -53.2% for DEFI 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 0.48. They move independently enough that combining them can meaningfully diversify a portfolio.

Fees and Cost Over Time

DEFI charges 0.25% per year while SPY charges 0.09%. On a $10,000 position that is $25 vs $9 annually, a gap of $16 per year that compounds over a long holding period. On income, DEFI currently yields 0.00% against 1.01% for SPY.

Frequently Asked Questions

Which is cheaper, DEFI or SPY?

DEFI has an expense ratio of 0.25% while SPY charges 0.09%. SPY is the cheaper option. On a $10,000 investment, that is $16 per year of difference.

Which performed better, DEFI or SPY?

Over the past year DEFI returned -47.20% vs +21.53% for SPY, so SPY leads on 1-year performance. Over the longest common window we track (3 years), DEFI annualized +13.41% vs +8.85% for SPY. Past performance does not guarantee future results.

Which is riskier, DEFI or SPY?

DEFI has been the more volatile fund at 51.5% annualized versus 15.3% for SPY. Worst drawdown: DEFI -53.2% vs SPY -56.5%.

Should I hold both DEFI and SPY?

DEFI and SPY have a monthly-return correlation of 0.48, so combining them can provide real diversification depending on your allocation goals.

Which pays a higher dividend, DEFI or SPY?

DEFI yields 0.00% while SPY yields 1.01%, so SPY currently pays the higher dividend yield.

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