DRIP vs SPY
Direxion Daily S&P Oil & Gas Exp. & Prod. Bear 2X 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 505 holdings.
Side-by-Side Comparison
| Metric | DRIP | SPY | Winner |
|---|---|---|---|
| Expense Ratio | 1.01% | 0.09% | |
| AUM | $106M | $814.4B | |
| Dividend Yield | 3.97% | 1.01% | |
| Holdings | 8 | 505 | |
| YTD Return | -61.26% | +12.60% | |
| 1Y Return | -60.13% | +20.83% | |
| 3Y Return (annualized) | -27.90% | +20.98% | |
| 5Y Return (annualized) | -46.20% | +12.56% | |
| Volatility (annualized) | 91.2% | 15.3% | |
| Max Drawdown | -100.0% | -56.5% | |
| Fund Family | Direxion Shares ETF Trust | State Street Investment Management | |
| Category | Alternative | Equity | |
| Inception | May 28, 2015 | Jan 22, 1993 |
DRIP vs SPY Performance
Direxion Daily S&P Oil & Gas Exp. & Prod. Bear 2X ETF (DRIP) is a ETF from Direxion Shares ETF Trust and State Street SPDR S&P 500 ETF Trust (SPY) is a ETF from State Street Investment Management. Over the past year DRIP returned -60.13% while SPY returned +20.83%. Year to date, DRIP is down 61.26% versus a gain of 12.60% for SPY.
Over three years, DRIP compounded at -27.90% per year against +20.98% for SPY; over five years the annualized figures are -46.20% and +12.56% respectively. Across the full 11-year window we track, SPY has the edge at +8.79% annualized vs -42.06%. Past performance does not guarantee future results.
Risk: Volatility and Drawdowns
DRIP has been the more volatile fund, with annualized monthly volatility of 91.2% 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 -100.0% for DRIP 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 -0.50. They move independently enough that combining them can meaningfully diversify a portfolio.
Fees and Cost Over Time
DRIP charges 1.01% per year while SPY charges 0.09%. On a $10,000 position that is $101 vs $9 annually, a gap of $92 per year that compounds over a long holding period. On income, DRIP currently yields 3.97% against 1.01% for SPY.
Holdings Overlap
DRIP and SPY share 0 holdings out of 507 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, DRIP or SPY?
DRIP has an expense ratio of 1.01% while SPY charges 0.09%. SPY is the cheaper option. On a $10,000 investment, that is $92 per year of difference.
Which performed better, DRIP or SPY?
Over the past year DRIP returned -60.13% vs +20.83% for SPY, so SPY leads on 1-year performance. Over the longest common window we track (11 years), DRIP annualized -42.06% vs +8.79% for SPY. Past performance does not guarantee future results.
Which is riskier, DRIP or SPY?
DRIP has been the more volatile fund at 91.2% annualized versus 15.3% for SPY. Worst drawdown: DRIP -100.0% vs SPY -56.5%.
Should I hold both DRIP and SPY?
DRIP and SPY have a monthly-return correlation of -0.50, so combining them can provide real diversification depending on your allocation goals.
What is the holdings overlap between DRIP and SPY?
DRIP and SPY share 0 common holdings with a 0.0% weight overlap. Combined, they hold 507 unique securities.
Which pays a higher dividend, DRIP or SPY?
DRIP yields 3.97% while SPY yields 1.01%, so DRIP currently pays the higher dividend yield.
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