DES vs SPY

Quick Verdict

SPY has a lower expense ratio. DES delivered stronger 1-year returns. DES offers more diversification with 510 holdings.

Lower Fees: SPYHigher Returns: DESMore Diversified: DES

Side-by-Side Comparison

MetricDESSPYWinner
Expense Ratio0.38%0.09%
AUM$2.2B$789.1B
Dividend Yield2.26%1.01%
Holdings530505
YTD Return+23.39%+13.75%
1Y Return+31.58%+22.91%
3Y Return (annualized)+13.84%+21.67%
5Y Return (annualized)+8.11%+13.32%
Volatility (annualized)20.1%15.3%
Max Drawdown-68.1%-56.5%
Fund FamilyWisdomTree InvestmentsState Street Investment Management
CategoryEquityEquity
InceptionJun 16, 2006Jan 22, 1993

DES vs SPY Performance

WisdomTree US SmallCap Dividend Fund (DES) is a ETF from WisdomTree Investments and State Street SPDR S&P 500 ETF Trust (SPY) is a ETF from State Street Investment Management. Over the past year DES returned +31.58% while SPY returned +22.91%. Year to date, DES is up 23.39% versus a gain of 13.75% for SPY.

Over three years, DES compounded at +13.84% per year against +21.67% for SPY; over five years the annualized figures are +8.11% and +13.32% respectively. Across the full 20-year window we track, SPY has the edge at +8.85% annualized vs +5.31%. Past performance does not guarantee future results.

Risk: Volatility and Drawdowns

DES has been the more volatile fund, with annualized monthly volatility of 20.1% 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 -68.1% for DES 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 0.82. They usually move together, but the gap leaves some room for diversification.

Fees and Cost Over Time

DES charges 0.38% per year while SPY charges 0.09%. On a $10,000 position that is $38 vs $9 annually, a gap of $29 per year that compounds over a long holding period. On income, DES currently yields 2.26% against 1.01% for SPY.

Holdings Overlap

0.1%overlap

DES and SPY share 1 holdings out of 1012 unique holdings combined, representing a 0.1% weight overlap.

Moderate overlap means holding both could provide meaningful diversification benefits.

Top Shared Holdings

StockWeight in DESWeight in SPYDifference
PSX0.14%0.11%0.03%

Frequently Asked Questions

Which is cheaper, DES or SPY?

DES has an expense ratio of 0.38% while SPY charges 0.09%. SPY is the cheaper option. On a $10,000 investment, that is $29 per year of difference.

Which performed better, DES or SPY?

Over the past year DES returned +31.58% vs +22.91% for SPY, so DES leads on 1-year performance. Over the longest common window we track (20 years), DES annualized +5.31% vs +8.85% for SPY. Past performance does not guarantee future results.

Which is riskier, DES or SPY?

DES has been the more volatile fund at 20.1% annualized versus 15.3% for SPY. Worst drawdown: DES -68.1% vs SPY -56.5%.

Should I hold both DES and SPY?

DES and SPY have a monthly-return correlation of 0.82, so combining them can provide real diversification depending on your allocation goals.

What is the holdings overlap between DES and SPY?

DES and SPY share 1 common holdings with a 0.1% weight overlap. Combined, they hold 1012 unique securities.

Which pays a higher dividend, DES or SPY?

DES yields 2.26% while SPY yields 1.01%, so DES currently pays the higher dividend yield.

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