DEFR vs SPY
Aptus Deferred Income 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 | DEFR | SPY | Winner |
|---|---|---|---|
| Expense Ratio | 0.79% | 0.09% | |
| AUM | $142M | $789.1B | |
| Dividend Yield | 0.00% | 1.01% | |
| Holdings | 11 | 505 | |
| YTD Return | -0.23% | +13.68% | |
| 1Y Return | +3.21% | +21.53% | |
| 3Y Return (annualized) | - | +21.44% | |
| 5Y Return (annualized) | - | +13.18% | |
| Volatility (annualized) | 4.3% | 15.3% | |
| Max Drawdown | -3.9% | -56.5% | |
| Fund Family | Aptus Capital Advisors | State Street Investment Management | |
| Category | Fixed Income | Equity | |
| Inception | May 13, 2025 | Jan 22, 1993 |
DEFR vs SPY Performance
Aptus Deferred Income ETF (DEFR) is a ETF from Aptus Capital Advisors and State Street SPDR S&P 500 ETF Trust (SPY) is a ETF from State Street Investment Management. Over the past year DEFR returned +3.21% while SPY returned +21.53%. Year to date, DEFR is down 0.23% versus a gain of 13.68% for SPY.
Risk: Volatility and Drawdowns
SPY has been the more volatile fund, with annualized monthly volatility of 15.3% compared with 4.3% for DEFR. 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 -3.9% for DEFR 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 0.35. They move independently enough that combining them can meaningfully diversify a portfolio.
Fees and Cost Over Time
DEFR charges 0.79% per year while SPY charges 0.09%. On a $10,000 position that is $79 vs $9 annually, a gap of $70 per year that compounds over a long holding period. On income, DEFR currently yields 0.00% against 1.01% for SPY.
Holdings Overlap
DEFR and SPY share 0 holdings out of 504 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, DEFR or SPY?
DEFR has an expense ratio of 0.79% while SPY charges 0.09%. SPY is the cheaper option. On a $10,000 investment, that is $70 per year of difference.
Which performed better, DEFR or SPY?
Over the past year DEFR returned +3.21% vs +21.53% for SPY, so SPY leads on 1-year performance. Over the longest common window we track (1 years), DEFR annualized +5.28% vs +8.85% for SPY. Past performance does not guarantee future results.
Which is riskier, DEFR or SPY?
SPY has been the more volatile fund at 15.3% annualized versus 4.3% for DEFR. Worst drawdown: DEFR -3.9% vs SPY -56.5%.
Should I hold both DEFR and SPY?
DEFR and SPY have a monthly-return correlation of 0.35, so combining them can provide real diversification depending on your allocation goals.
What is the holdings overlap between DEFR and SPY?
DEFR and SPY share 0 common holdings with a 0.0% weight overlap. Combined, they hold 504 unique securities.
Which pays a higher dividend, DEFR or SPY?
DEFR yields 0.00% while SPY yields 1.01%, so SPY currently pays the higher dividend yield.
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