DIPS 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

MetricDIPSSPYWinner
Expense Ratio1.05%0.09%
AUM$8M$789.1B
Dividend Yield62.08%1.01%
Holdings13505
YTD Return-13.90%+13.79%
1Y Return-14.87%+23.66%
3Y Return (annualized)-+21.40%
5Y Return (annualized)-+13.37%
Volatility (annualized)26.4%15.3%
Max Drawdown-59.9%-56.5%
Fund FamilyYieldMax ETFState Street Investment Management
CategoryAlternativeEquity
InceptionJul 23, 2024Jan 22, 1993

DIPS vs SPY Performance

YieldMax Short NVDA Option Income Strategy ETF (DIPS) is a ETF from YieldMax ETF and State Street SPDR S&P 500 ETF Trust (SPY) is a ETF from State Street Investment Management. Over the past year DIPS returned -14.87% while SPY returned +23.66%. Year to date, DIPS is down 13.90% versus a gain of 13.79% for SPY.

Risk: Volatility and Drawdowns

DIPS has been the more volatile fund, with annualized monthly volatility of 26.4% 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 -59.9% for DIPS 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 -0.58. They move independently enough that combining them can meaningfully diversify a portfolio.

Fees and Cost Over Time

DIPS charges 1.05% per year while SPY charges 0.09%. On a $10,000 position that is $105 vs $9 annually, a gap of $96 per year that compounds over a long holding period. On income, DIPS currently yields 62.08% against 1.01% for SPY.

Holdings Overlap

0.0%overlap

DIPS 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, DIPS or SPY?

DIPS has an expense ratio of 1.05% while SPY charges 0.09%. SPY is the cheaper option. On a $10,000 investment, that is $96 per year of difference.

Which performed better, DIPS or SPY?

Over the past year DIPS returned -14.87% vs +23.66% for SPY, so SPY leads on 1-year performance. Over the longest common window we track (2 years), DIPS annualized -32.38% vs +8.85% for SPY. Past performance does not guarantee future results.

Which is riskier, DIPS or SPY?

DIPS has been the more volatile fund at 26.4% annualized versus 15.3% for SPY. Worst drawdown: DIPS -59.9% vs SPY -56.5%.

Should I hold both DIPS and SPY?

DIPS and SPY have a monthly-return correlation of -0.58, so combining them can provide real diversification depending on your allocation goals.

What is the holdings overlap between DIPS and SPY?

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

Which pays a higher dividend, DIPS or SPY?

DIPS yields 62.08% while SPY yields 1.01%, so DIPS currently pays the higher dividend yield.

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